What Has Been the Growth of the Boutique Hotel Market So Far?
The boutique hotel market has seen considerable growth due to a variety of factors.
• The boutique hotel market has grown strongly in recent years, with an expected increase from $93.79 billion in 2024 to $100.4 billion in 2025 at a CAGR of 7.0%.
This growth is driven by rising demand for unique and personalized travel experiences, increasing preference for locally-inspired accommodations, growing popularity among millennial and Gen Z travelers, the expansion of digital booking platforms, and higher disposable incomes spent on luxury travel.
How Will the Boutique Hotel Market?
The boutique hotel market is expected to maintain its strong growth trajectory in upcoming years.
• The boutique hotel market is projected to grow significantly, reaching $129.88 billion by 2029 at a CAGR of 6.6%.
Growth factors include sustainable practices, advanced technology for personalized experiences, a shift to experiential hospitality, refurbishing and expanding boutique hotel chains, and increasing investment in emerging markets. Trends include wellness experiences, cultural integration, leisure travel, combining business and leisure stays, contactless tech, and hybrid spaces.
Which Factors Are Boosting Growth In The Boutique Hotel Market?
The rise of experiential travel is expected to contribute to the growth of the boutique hotel market. Experiential travel focuses on immersive, hands-on experiences that allow travelers to engage with local cultures. Boutique hotels cater to this trend by offering unique accommodations reflecting the local culture. The World Tourism Organization reported that international tourist arrivals grew by 22% in the third quarter of 2023 compared to 2022, indicating a demand for more personalized travel experiences.
What Key Areas Define The Segmentation Of The Global Boutique Hotel Market?
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
Subsegments:
1) By Business Hotels: Corporate Hotels, Conference And Meeting Hotels, Executive And Luxury Business Hotels
2) By Suite Hotels: All-Suite Hotels, Extended Stay Suite Hotels, Luxury Suite Hotels
3) By Airport Hotels: Transit Hotels, Airport Lounge Hotels, Airport Conference Hotels
4) By Resort Hotels: Beach Resorts, Mountain Resorts, Wellness And Spa Resorts, Adventure And Eco-Resorts
5) Other Hotel Types: By Boutique Luxury Hotels, Urban Boutique Hotels, Historic Boutique Hotels, Themed Boutique Hotels
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What New Trends Are Influencing The Boutique Hotel Market?
Companies in the boutique hotel market are advancing with technologies such as app-enabled services to stay competitive. App-enabled services refer to mobile apps that simplify hotel services and offer personalized experiences. For instance, in July 2023, Sonder Holdings Inc., a US-based tech-driven hospitality company, introduced the Powered by Sonder collection, featuring boutique hotels with integrated app-enabled services. Guests can manage their stay—from booking to check-out—via the Sonder app, offering convenience like mobile check-in and communication with guest services.
Who Are the Key Players In The Boutique Hotel Market?
Major companies operating in the boutique hotel market are:
• 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
What Is The Most Dominant Region In The Boutique Hotel Market?
Asia-Pacific was the largest region in the boutique hotel market in 2023. The regions covered in the boutique hotel market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
