The boutique hotel market has experienced strong growth, with its size increasing from $87.95 billion in 2023 to $93.79 billion in 2024, reflecting a compound annual growth rate (CAGR) of 6.6%. This growth can be attributed to the rising demand for unique and personalized travel experiences, a preference for authentic and locally-inspired accommodations, the growing popularity of boutique hotels among millennials and Gen Z travelers, the expansion of digital platforms enhancing booking convenience, and rising disposable incomes and spending on luxury travel experiences. The market is expected to continue growing, reaching $121.90 billion by 2028 at a CAGR of 6.8%. The growth in the forecast period is driven by factors such as the adoption of sustainable practices and eco-friendly initiatives, integration of advanced technology for personalized guest experiences, a shift towards experiential hospitality offerings over traditional amenities, increased investment in refurbishing and repositioning existing properties, and the expansion of boutique hotel chains into emerging markets. Major trends during this period include an emphasis on wellness and holistic guest experiences, integration of art and cultural elements into hotel design and services, growth in leisure travel, combining business and leisure stays, adoption of contactless technologies and AI-driven customer service, and the development of hybrid spaces that blend accommodation with co-working or social hubs.
Global Boutique Hotel Market Key Driver
The growing trend of experiential travel is expected to propel the growth of the boutique hotel market going forward. Experiential travel involves immersive and hands-on experiences that allow travelers to engage deeply with a destination's culture, activities, and local life, often through unique and personalized activities. This trend stems from a desire for authentic, meaningful interactions and memorable experiences that surpass traditional sightseeing, offering deeper connections with destinations and cultures. Boutique hotels enhance this experience by providing unique, personalized accommodations that reflect local culture and character, giving travelers a more immersive and distinctive stay. For instance, in November 2023, according to the World Tourism Organization (UNWTO), a Spain-based intergovernmental organization, international tourist arrivals increased by 22% compared to the same period in 2022, and foreign tourist earnings might exceed $1.4 trillion by the end of 2023. Therefore, the growing trend of experiential travel is driving the growth of the boutique hotel market.
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Global Boutique Hotel Market Segments
The boutique hotel market covered in this report is segmented –
1) By Hotel Type: Business Hotels, Suite Hotels, Airport Hotels, Resorts Hotels, Other Hotel Types
2) By Style And Theme: Historic Boutique Hotels, Art-Themed Boutique Hotels, Eco-Friendly Or Green Boutique Hotels, Boutique Beach Resorts
3) By Target Audience: Luxury Boutique Hotels, Budget Boutique Hotels, Adults-Only Boutique Hotels, Family-Friendly Boutique Hotels
4) By Booking Channel: Phone Booking, Online Booking, In Person Booking
5) By Location: Urban Boutique Hotels, Rural Or Countryside Boutique Hotels
By Geography:The regions covered in the boutique hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
Asia-Pacific was the largest region in the boutique hotel market in 2023.
Major Boutique Hotel Industry Players
Marriott International Inc., Hilton Worldwide Holdings Inc., Hyatt Hotels Corporation, Four Seasons Hotels and Resorts, InterContinental Hotels Group PLC, Dubai Holding LLC, Rosewood Hotels & Resorts, Jumeirah International LLC, The Travel Corporation, Shangri-La International Hotel Management Ltd., The Peninsula Hotels, Mandarin Oriental International Limited, The Ace Hotel, Six Senses Hotels Resorts Spas, Firmdale Hotels, ITC Hotels Limited, Yotel Ltd., The Standard Hotels, The Hoxton, Ovolo Hotels, COMO Hotels and Resorts, Auberge Resorts Collection, 1 Hotels, The Pod Hotel, Design Hotels, Bunkhouse Group, Triple Creek Ranch, Farmhouse Inn, Kerzner International Limited
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Boutique Hotel Market Overview
A boutique hotel refers to a small, stylish hotel often situated in a unique setting, such as a historical building or trendy urban neighborhood. These hotels emphasize intimate settings, personalized service, and often distinctive decor and amenities that cater to a specific theme or clientele. Boutique hotels aim to provide a more personalized and upscale experience compared to larger chain hotels, often focusing on luxury, design, and individuality.
Boutique Hotel Global Market Report 2023 provides data on the global boutique hotel market such as market size, growth forecasts, segments and geographies, competitive landscape including leading competitors’ revenues, profiles and market shares. The boutique hotel market report identifies opportunities and strategies based on market trends and leading competitors’ approaches.
