The accommodation sector has become a multifaceted industry providing a vast number of development options including limited service, boutique, focus service, lifestyle hotels and full service hotels with large convention facilities. It is also a time where an abundance of brands and scales exist in any given marketplace. Over the last decades, a market of "trendsetters" emerged, searching for new and unique accommodation experiences. The industry quickly responded to this need with a new concept that allows for differentiation from more familiar hotel concepts, thus the boutique hotel emerged. Boutique hotels can be described as intimate (typically 100 rooms or less), luxurious, stylish and distinctive hotel environments. Attention to detail, architecture and design, art and location are also important factors in being a boutique hotel.
With the success of the boutique concept, hotel chains have recently created brands that mimic the boutique concept, but are not considered boutique hotels. An example is that of the Aloft brand concept by Starwood Hotels and Resorts, which was created to satisfy demographics and psychographics of a niche of travelers. The Aloft brand appeals to a group of individuals seeking affordable, modern, hip, fun and intimate settings with fewer services than the traditional full service hotel. This hotel brand concept features guestrooms with modern furniture and technology, 9' loft ceilings and plush platform beds. The w xyz bar appeals as a breakfast seating area in the mornings. Aloft has become an option for developers seeking to build a focus service hotel that targets a specific lifestyle in an urban market nearby a university, airport or other locations with a younger demographic. Many brands have followed suit by mimicking the modern and chic boutique concept by extending the concept into extended stay and focus service brands.
Soft branding is an opportunity for independent hotels to keep their reputation as an independent boutique hotel while benefitting from a global reservations system with a proven track record for sales and marketing efforts. For example, Hilton Hotels and Resorts allows for soft branding through their Hilton and Doubletree brands, such as The Curtis by Hilton in Chicago, which opened during the global economic meltdown in late 2008 as an independent hotel and later converted to a soft branded Hilton. Other examples include, The Trafalgar by Hilton in London, UK, which opened as an independent and then converted to a Hilton Hotel and The Wit Hotel by Doubletree, which was a purpose built boutique Doubletree Hotel. Other hotel franchise companies, such as Marriott, have similar soft branding concepts such as the Autograph Collection. The Plaza Hotel in New York City and the Savoy in London are well known hotel examples of soft branding in which the independent hotel name is clearly identified, but both properties are managed by and affiliated with Fairmont Hotels and Resorts.
Other reasons for tapping into a large network of hotels include instant recognition, benefits of the global reservation system and a strong platform for sales and marketing. There are often other advantages for boutique hotels to be branded. Lenders often express comfort when a reputable brand is involved, especially relevant in light of the current economic and market conditions. Branding of course comes at a cost, and it is important to carefully weigh out the options
There are several examples of traditional boutique hotels part of a major brand or collection of boutique hotels that fall within the upscale to luxury segment. Such examples include Indigo by Intercontinental Hotels Group, Andaz by Hyatt, W Hotels by Starwood Hotels and Resorts, Kimpton Hotels, and Rosewood Hotels and Resorts to name a few.
Differentiation is one of the keys to success when positioning a hotel amongst its competition. Owners or developers now have many ways in which to create a highly unique, hip or trendsetting hotel, as an independent hotel or with the power of a brand or collection of hotels to ensure added success.
Cindy Schoenauer, Senior Consultant
PKF Consulting Inc. Vancouver
