Recent mergers have shifted several independent boutique properties into the soft brand collection and lifestyle hotel segments causing fluctuation in some class categories, according to the Boutique Hotels: Mid-Year 2025 from the Highland Group. However, collectively boutique hotels indexed at parity or higher in all performance indicators through June 2025 as compared to the previous time period.
As an alternative to traditional accommodation, most boutiques attract guests with a sense of place and unique features, according to the report. Consequently, through mid-year 2025, demand for boutiques increased at 1.6 percent compared to U.S. same class hotels of 0.6 percent. During this period, newly-added hotels continue to be heavily distributed in urban locations; however, a pique in the appeal of this hotel type in suburban town centers has become a recent trend.
“The continued appeal of the boutique hotel concept is shown in a variety of ways," Kim Bardoul, partner at The Highland Group, said in a statement. "Increased demand at a stronger pace than traditional hotels of the same class tells this story. The recent affiliation of successful independent boutique collections with national franchise systems clearly shows industry attraction to this accommodation type. Continued new supply through the first half of the year indicates developer confidence in the boutique hotel segment."