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Lodging subsector report: boutique hotels

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Title: Lodging subsector report: boutique hotels
Author: Chan, Clarissa
Abstract: Boutique hotels focus on the experiential nature of service delivery. Factors helping to deliver upon the experience include a cap on the number of rooms, a design or cultural aspect to the property and attention to the location of the property. The subsector however, lacks a singular definition. This is in part due to structural changes undergone by the subsector since conception of the concept. The subsector evolved from comprising of independently owned properties to establishment of dedicated boutique hotel chains and more recently, involvement of large international hotel chains looking to diversify their operations. Problems facing boutique hotels encompasses increasing competition for real estate and financing opportunities, concept copying, and human resource and branding issues. Looking into the future, boutique hotels need to have a strong differentiation strategy while maintaining authenticity of the property. Operating under a members’ club structure is an ongoing trend in this subsector, along with greater attention to environmental sustainability, incorporation of technology into the property, introduction of budget boutique hotels and growth within the Asian markets.
Date: 2012-05-08
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