As demographics of the modern traveler evolve, chains look to stay ahead of the curve with new concepts and strategies. In the last couple of years, large corporations and chains have found it advantageous to acquire unique assets in favorable locations. It is doing so in part because of the buying behavior of the millennial generation that seeks novel experiences for a good price.
Boutique hotels are typically establishments with anywhere from 10 to 100 keys. The advantages to staying at a boutique hotel are many with the headline being that a guest can have a luxurious experience at a materially lower cost.
Some of the recent notable acquisitions have included InterContinental Hotels Group’s acquisition of a 51% stake in Regent Hotels & Resorts in 2018. IHG then went on the pick up Six Senses Hotel & Resorts. Another transaction was Accor acquiring a 50% stake in sbe while launching its luxury lifestyle brand called The House of Originals. Perhaps the deal involving the most widely recognizable high end brand was LVMH’s acquisition of Hospitality Group Belmond for $3.2 billion, which was completed in 2019.
The boutique advantage is based on location, detailed themes, privacy and attentive services. There’s no denying the uniqueness of a boutique experience. Typically, a guest will come to realize that the location was so carefully selected to be close to local culture and will truly feel the attention to detail in the building’s architecture and décor. Moreover, hospitality is taken to another level where privacy is of utmost importance and each guest’s needs are carefully and quickly met.
