Skip to content

Search

Latest Stories

Report: Boutique hotels recovering quickly from pandemic

Popularity of segment minimized RevPAR losses in 2020

Report: Boutique hotels recovering quickly from pandemic

BOUTIQUE HOTELS STRUGGLED some in 2020, but recovered faster than other categories of hotel, according to a report from consulting agency The Highland Group. The segment was able capitalize on its growing popularity among travelers to reopen and end discounts faster than similar hotels in other segments.

In March and April 2020, as travel restrictions from the COVID-19 pandemic were implemented, the boutique hotel sector saw closures just as others did, according to the Boutique Hotel Report 2021. Later in the year, however, RevPAR improved for the sector as boutiques slowed down discounts on average rates.


The Highland Group’s report from March 2020 found the segment maintained high demand despite growing supply, resulting in higher ADR and RevPAR.

“This yield management strategy, most widely seen in the upper upscale/luxury class of independent boutique and soft brand collections, positions these boutique hotels in a stronger position to recapture rate in the recovery years,” said Kim Bardoul, partner at The Highland Group.

The report defines boutique hotels as independent, lifestyle hotels and soft brand collections. Those categories are expanding as companies introduce new brands fitting the category.

“Boutique hotels have experienced wide popularity among all types and classes. As one of the fastest growing segments for the past several years, interest has piqued for consumers, developers, investors and franchise companies,” said the report’s executive summary. “Some classes and types of boutiques fared better in certain metrics than comparable hotels in the same class. RevPAR loss in 2020 was less for upper upscale/luxury independent boutique and soft brand collections, as rate discounting decelerated in the last half of the year. Supply losses were notably more for both class groupings of independent boutique hotels, which are largely individually owned and located in densely populated urban areas which were strongly affected by the COVID‐19 pandemic.”

All hotel categories in the segment reported only slight declines in RevPAR in 2020 compared to 2019. Upper upscale and luxury independent boutique and soft brand collections of the same class, as well as upper midscale and upscale soft brand collections, reported 10 to 18 percent RevPAR index gains in 2020 compared to their 2017 to 2019 average.

More for you

Olympic Wage ordinance 2028
Photo credit: Unite Here Local 11

Petition fails to stop L.A. hotels wage increase

Summary:

  • Failed petition clears way for Los Angeles “Olympic Wage” to reach $30 by 2028.
  • L.A. Alliance referendum fell 9,000 signatures short.
  • AAHOA calls ruling a setback for hotel owners.

A PETITION FOR a referendum on Los Angeles’s proposed “Olympic Wage” ordinance, requiring a $30 minimum wage for hospitality workers by the 2028 Olympic Games, lacked sufficient signatures, according to the Los Angeles County Registrar. The ordinance will take effect, raising hotel worker wages from the current $22.50 to $25 next year, $27.50 in 2027 and $30 in 2028.

Keep ReadingShow less
AHLA Foundation expands hospitality education

AHLA Foundation expands hospitality education

Summary:

  • AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
  • The collaborations align academic programs with industry workforce needs.
  • It will provide data, faculty development, and student engagement opportunities.

THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.

Keep ReadingShow less
Hotel data challenges report highlighting AI and automation opportunities in hospitality

Survey: Data gaps hinder hotel growth

Summary:

  • Fragmented systems, poor integration limit hotels’ data access, according to a survey.
  • Most hotel professionals use data daily but struggle to access it for revenue and operations.
  • AI and automation could provide dynamic pricing, personalization and efficiency.

FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.

Keep ReadingShow less
Hyatt Way partnership

Hyatt taps Way for unified guest platform

Summary:

  • Hyatt partners with Way to unify guest experiences on one platform.
  • Members can earn and redeem points on experiences booked through Hyatt websites.
  • Way’s technology supports translation, payments and data insights for Hyatt.

HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.

Keep ReadingShow less
Report: CMBS delinquency rate hits 7.23 percent in July

Report: CMBS delinquency rate hits 7.23 percent in July

Summary:

  • U.S. CMBS delinquency rate rose 10 bps to 7.23 percent in July.
  • Multifamily was the only property type to increase, reaching 6.15 percent.
  • Office remained above 11 percent, while lodging and retail fell.

THE U.S. COMMERCIAL mortgage-backed securities delinquency rate rose for the fifth consecutive month in July, climbing 10 basis points to 7.23 percent, according to Trepp. The delinquent balance reached $43.3 billion, up from $42.3 billion in June.

Keep ReadingShow less