Quick, define the generic term Boutique Hotel. Well? Give
up? What links the distinguished array of Canadian hotels
such as the Wedgewood, Opus Hotel or Le Soleil in Vancouver,
the Magnolia or Abigail’s Inn in Victoria, the Union
Bank Building, Varscona or the Met in Edmonton, the Kensington
Inn in Calgary, Hotel Le Germain in Toronto, Montreal and
Quebec City, the W Hotel, Hotel Nelligan or Hotel Place d’Armes
in Montreal, the Arc Hotel in Ottawa, the Pillar & Post
Inn Spa and Conference Centre, the Queen’s Landing
Inn & Conference Retreat or the Prince of Wales Hotel
in Niagara-on-the-Lake? Are these “Hotels Without Attitude” or “Hotels
With Attitude”? These hotels may exhibit more differences
than commonalities.
Design and experience are key components
of the success in boutique hotels. Perhaps the guests are
seduced by the silky descriptions for these hotels. Is
a guest enticed by a hotel that provides a sense of fun and
theatre or is funky, hip or quirky? Unit size varies significantly
amongst these hotels. Owners consider whether subtle luxury
and urban elegance is desirable or whether guests prefer
period designs or eclectic concepts. Are guests turned
on by what the W Hotel, Montreal website refers to as a “marriage
of authentic service and modern style”? Is a guest
seeking a hotel with a refreshing, contemporary design with
modernity based on minimalist designs and a soothing ambience?
Does the artistic soul feel stroked when designs incorporate
brushed metal, plays of white on white, natural colours or
the deep colours so popular for residential use. Do sensual
design and lush lighting speak to a guest? Designers have
never been more important.
Art contributes to a sense of place and experience,
creating character in these hotels. While guestrooms are
the sleep and work cocoons for the guests, the lobbies
are becoming the living room and entertainment venue in many
boutique properties, an integral part of the guest experience.
Food and beverage design tends toward open designs with
transitional seating areas.
Boutique hotels are not carbon copies; they
are not resorts (although some recreational amenities may
be provided); typically, they are not full service, although
most provide services in other forms; they do not fit the
typical description of budget, mid scale or luxury hotels;
and, they are generally not large; and, group markets are
not primary targets.
A
review of the performance of Canadian boutique properties
in 2004 compared to the findings of the PKF “Trends
in the Hotel Industry” market samples, reveals the
average room rate of $200 for the boutique hotels, a rate
30% higher than that achieved by Upscale hotels and significantly
higher than the average Canadian hotel on a nation wide basis.
Rate was achieved at the expense of occupancy, which at 62.0%,
was 5 points below the average for Upscale hotels but similar
to the overall Canadian hotel occupancy percentage. RevPAR
exceeded that of upscale hotels in Canada last year. However
it is expensive for hoteliers to offer the range of technological
and comfort based amenities offered in boutique hotels today.
These are the amenity comparables found in upscale hotels,
selected to meet the needs of target markets. High service
and amenity expenses applied against a smaller room base,
and significant capital costs must be balanced by RevPAR.
Beth Walters, Director
PKF Consulting, Vancouver
