outique hotels , characterized by an individual and unique design , localized charm and personalized guest experiences , have been witnessing an increase in popularity for some time . Unlike hotels belonging to bigger brands or chains , boutique hotels can focus on creating guest experiences focusing on the local flavor and upcoming trends .

Offering intimate , cozy lodging options , with individual attention to guests , boutique hotels are known for their small sizes , usually between 10 to 100 rooms . With fewer rooms and

Boutique hotels can focus on creating guest experiences by focusing on local flavor and trends .

guests , boutique hotels can focus on offering a more personal level of care to guests .

The boutique hotel market was valued at $ 9.8 billion in 2023 and is expected to rocket to $ 18 billion by 2033 , growing at a CAGR of 6.4 % from 2024 to 2033 , a recent study on the boutique hotel market from Allied Market Research noted . There are several factors influencing the dynamics in the boutique hotel industry . The increasing consumer demand for customized and distinctive travel experiences is a key driving force , according to the

report . The distinctive , cozy ambiance and personalized guest experience , which sets them apart from hotel chains ’ “ mass-produced ” properties , are mostly preferred by Millennials and Gen Z travelers , the report said . The Instagram-worthiness of boutique hotels also adds to its appeal .

The increased focus on sustainability is another major reason why travelers are gravitating toward boutique hotels . By utilizing locally made products , reducing waste and using local produce in the kitchen , boutique hotels set a standard for sustainable hospitality measures , the study said .

A growing number of travelers are keen on exploring experiential travel . Many guests prioritize cultural experiences while traveling to a new destination and boutique hotels are in a good position to offer them . Boutique hotels provide a closer connection to the location by incorporating elements of the local culture and tradition into their activities , design and culinary offerings .

Recent strategic partnerships and joint ventures have been expanding boutique hotels ’ profiles and improving their accessibility , while helping boutique hotels venture into new markets and reach a wider audience . Earlier this year , Hilton added nearly 400 Small Luxury Hotels of the World boutique hotels . Aiming to widen its luxury and boutique hotel offerings , Hyatt acquired the London-based Mr & Mrs Smith for £ 53 million in 2023 . The move helped Hyatt to

add more luxury properties worldwide , including in 20 more countries where the hotel giant was previously not present . In December 2023 , Minor Hotels expanded its footprint in the boutique luxury market with the acquisition of a group of boutique hotels across the Asia- Pacific region .

Besides established hotel giants , luxury fashion houses have also been foraying into the boutique hotel sector , combining their signature design elements with bespoke travel experiences . French shoe designer Christian Louboutin ’ s first-ever hospitality offering was a 13-key luxury boutique hotel in Melides , Portugal . Ralph Lauren introduced its signature style into the hospitality sector with its 36-room boutique hotel , Round Hill Hotel & Villas in Jamaica .

REGIONAL OUTLOOK The market for boutique hotels varies by region . In North America , the U . S . has the strongest demand for these properties , fueled by major cities like New York and Los Angeles , the study said .

In Europe , France , Italy and the U . K . are witnessing rapid market expansion as a result of these countries ’ appeal and rich cultural legacy , which are capitalized by boutique hotels .

Across Asia Pacific , Thailand and Japan are witnessing significant demand for boutique hotels as guests are keen to explore cultural experiences .

In Latin America and Africa , cities like Buenos Aires and Cape Town are beginning to rise to prominence .

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