Boutique hotels outperform competitive peers

June 05, 2008 |

While the early wave of boutique hotels turned off many business travelers because of their impractical guestrooms and spotty service, recent entries to the market are trying to offer better service and business-friendly amenities along with a lively social atmosphere.

Also referred to as lifestyle or design hotels, the new brands represent a movement away from the sameness that has long characterized hotel chains in favor of properties meant for a specific location or demographic.

The main reason for the boutique boom is financial.

?With the exception of 2001 to 2003, boutique hotels have outperformed both in occupancy and average daily rate their competitive peers,? Bjorn Hanson, a lodging analyst with PricewaterhouseCoopers said. ?It started out as a segment of its own ? boutique ? and now we see boutique brands at different price points and different service levels.?

Get the full story at The New York Times

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