BOUTIQUE Motels STRUGGLED some in 2020, but recovered more rapidly than other categories of lodge, in accordance to a report from consulting company The Highland Group. The segment was capable capitalize on its escalating reputation amongst travelers to reopen and conclusion savings more quickly than identical hotels in other segments.
In March and April 2020, as vacation limits from the COVID-19 pandemic had been implemented, the boutique resort sector observed closures just as other individuals did, in accordance to the Boutique Lodge Report 2021. Later on in the yr, nonetheless, RevPAR improved for the sector as boutiques slowed down savings on regular premiums.
The Highland Group’s report from March 2020 observed the segment taken care of substantial demand regardless of growing source, ensuing in better ADR and RevPAR.
“This produce management tactic, most widely found in the upper upscale/luxury course of impartial boutique and soft manufacturer collections, positions these boutique accommodations in a more robust situation to recapture price in the restoration a long time,” mentioned Kim Bardoul, husband or wife at The Highland Group.
The report defines boutique hotels as unbiased, lifestyle hotels and gentle brand name collections. All those classes are growing as businesses introduce new manufacturers fitting the group.
“Boutique accommodations have seasoned large level of popularity among all sorts and courses. As one of the fastest expanding segments for the previous numerous a long time, desire has piqued for buyers, builders, buyers and franchise organizations,” explained the report’s govt summary. “Some classes and sorts of boutiques fared improved in certain metrics than equivalent lodges in the identical class. RevPAR reduction in 2020 was significantly less for upper upscale/luxurious impartial boutique and delicate brand collections, as price discounting decelerated in the final 50 percent of the year. Provide losses had been notably much more for equally class groupings of unbiased boutique lodges, which are mostly individually owned and located in densely populated city regions which were being strongly affected by the COVID‐19 pandemic.”
All lodge groups in the section noted only slight declines in RevPAR in 2020 compared to 2019. Higher upscale and luxury unbiased boutique and delicate model collections of the similar class, as perfectly as upper midscale and upscale soft brand name collections, claimed 10 to 18 p.c RevPAR index gains in 2020 when compared to their 2017 to 2019 typical.