REPORT: Boutique Hotels Outperform Traditional Hotel Supply

ATLANTA—According to The Highland Group’s “Boutique Hotel Report 2020,” boutique hotels continue to outperform traditional U.S. product amid slowing RevPAR growth and increasing supply.

National hotel trends of declining RevPAR growth and room supply increases over the near term should impact all hotel types to varying degrees. Based on the newest data found in the report, demand for hotels in the boutique segment is still going strong and most boutique groupings by class report higher occupancy and average rate than traditional U.S. counterparts.

“Lifestyle hotels and soft brand collections, specifically, have been two of the hotel industry’s fastest-growing segments over the past seven years, increasing rooms by 14% and 21%, respectively”, reported Kim Bardoul, partner at The Highland Group. “Major franchise companies recognize the strong performance of this lodging type and continue to debut new lifestyle hotel and soft brand collections at differing price points.”


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