Hospitality Definition
“Boutique hotels” and “Lifestyle hotels” are terms popularized to describe hotels that often contain luxury facilities of varying sizes in unique or intimate settings, often with full-service accommodations. While there is some debate about the size of a boutique hotel versus a lifestyle hotel, the important thing to remember is that these hotels cater to customers who want a unique hotel experience.
Property Style
Sometimes known as “designer hotels” or “lifestyle hotels,” boutique hotels began appearing in the 1980s in major cities like London, New York, and San Francisco. Typically boutique hotels are furnished in a themed, stylish, and/or aspirational way. Boutique hotels are often individual and focused on offering their services in a comfortable, intimate, and welcoming setting. Guest rooms and suites may be fitted with telephone and Wi-Fi Internet, air-conditioning, honesty bars, and often cable/pay TV, but equally may have none of these, focusing on quiet and comfort rather than gadgetry.
Guest services are often attended to by 24-hour hotel staff. Many boutique hotels (although not all) have on-site dining facilities, and some offer bars and lounges that may also be open to the general public. Boutique hotels have typically been unique properties operated by individuals or companies with a small collection. (Source: Wikipedia)
There is some overlap between the concept of a small boutique hotel and a bed and breakfast, and now, the overlap between luxury franchise collections and lifestyle hotels. Often times the difference is merely in the targeted marketing for each property.
Investment Style
In the past, boutique hotel owners were generally willing to accept a slightly lower rate of return in exchange for the opportunity to develop and offer an iconic and interesting hotel concept that strongly reflects the owner’s personality. But that has changed in the last decade. Now boutique and lifestyle hotels are often in direct competition with some of the larger upscale chains and may BE an upscale chain!
Expenses may be higher due to the more unique amenities, upscale furnishings and fixtures, and higher service levels required of guests who enjoy this sort of accommodation. The ability to tap into social media and create a buzz among the target clientele is a plus. Room rates may be higher than comparable non-boutique properties due to the potential to attract more upscale guests.
Creativity, vision, and desire to create a hotel with a strong statement may be a good indication that the boutique hotel and lifestyle hotel are a good fit for your investment style. The clientele who stay at boutique or lifestyle hotels often seeks a unique hospitality experience that reflects their desired lifestyle, values, and decor tastes. In some cases, a guest’s stay is largely influenced by how they are perceived by others and the status that is associated with staying at this type of hotel.