Are Boutique Hotels Becoming Mainstream? - CBRE Hotels report
Contact
Are Boutique Hotels Becoming Mainstream? - CBRE Hotels report
Lifestyle branded hotels are becoming more mainstream and increasingly accounting for a larger share of the hotel universe, with several big hotel operators launching or purchasing their own boutique hotel brands over the past five years.
-
Little Albion HotelThe Little Albion Hotel, Sydney - opened July 2018
This is the focus of CBRE’s new ViewPoint research report; Are Boutique Hotels Becoming Mainstream?
CBRE Senior Research Manager, Danny Lee, said Sydney, Melbourne and Canberra had the largest share of boutique hotel developments, with boutique offerings representing up to 20% of the pipeline and 12% being the national average of CBD hotel developments.
“It is evident that boutique hotels are becoming more mainstream as they contribute to a larger share of stock,” Mr Lee commented.
Mr Lee added that the explosion of digital content and social media had given rise to the idea of authenticity and experiential travel, particularly among younger demographics.
“Experience-based travel is becoming prevalent across all demographics, but highly preferred by younger cohorts, giving boutique and lifestyle hotels the upper hand in the battle for customers,” Mr Lee said
“As the hotel environment witnesses an increasing level of competition between sharing platforms, independents and hotel chains, hoteliers are focusing on innovation and personality-based offerings in order to differentiate and retain market share.”
CBRE’s report highlights that a number of hotels are competing by outsourcing food-and-beverage operations to master-chefs, while others are going green and looking at sustainable development to meet the demands of eco-friendly visitors.
For instance, the West Hotel in the Sydney CBD has brought the outdoors in, with its open-air garden atrium and surrounding greeneries.
CBRE Hotels National Director, Wayne Bunz, noted that while Australia was yet to see a large influx of major international brands target the boutique market, several acquisitions and launches had highlighted interest from the bigger players in this segment of the market.
CBRE Hotels National Director, Wayne Bunz
“These include Accor’s recent purchase of Tribe, an Australian lifestyle brand focused on high-quality hotel experience at an affordable price, as part of its foray into boutique brands in Australia,” Mr Bunz said.
“Another Accor product, Art series, is a new brand gaining momentum in the Melbourne, Brisbane and Adelaide markets – featuring boutique hotels inspired by and dedicated to Australian contemporary artists. Marriott Hotels is also poised to debut Moxy, a millennial focused boutique brand, in Melbourne in 2021.”
See also: Ibis Glen Waverley Melbourne Hotel for sale
Mr Bunz noted that lifestyle boutique hotels could also be successful, with or without a major global brand attached, if the owner was able to provide a tailored experience and in turn attract a premium from discerning clients.
“The Crystalbrook Collection hospitality brand’s new Riley hotel in Cairns and Little Albion in Sydney are evidence of this, offering guests a bespoke experience,” Mr Bunz said.
“The success of independent local boutique brands over the past decade has supported the case for both international groups and smaller players to undertake boutique hotel developments, such as Ovolo The Valley, Brisbane; The Old Clare Hotel, Sydney; Veriu, Sydney; Little National Hotel, Canberra; Emporium, Brisbane; The Calile Hotel, Brisbane and the Jackalope Hotel on the Mornington Peninsula.”
Related Reading:
Veriu announces new Melbourne Queen Victoria Market Hotel
New Melbourne Peppers hotel opens in Southbank
Park Hotel Group grows presence in Australia with signing of new hotel in Melbourne
New York and Miami based brand '1 Hotel' announced for Melbourne Northbank Seafarers project
