Alisha Haridasani poses the question “What actually is a boutique hotel?” and provides some interesting answers
If the big hotel chains and their flagship properties can be considered the immaculate and square Stepford wives of the industry, then boutique hotels are the free-spirited clan of rebels, breaking the rules and changing market dynamics.
In the era of cookie-cutter hotel dominance, the first rule of thumb was the adage that bigger is better: the bigger the room inventory or the chandelier or the lobby, the better. Now, with the arrival of the boutique players, that isn’t always the case. Instead, these pioneering newcomers focus on design, intimacy and that extra “cool” factor, which diversifies the industry and creates new niches.
The concept of the boutique hotel first germinated back in 1978, with the 50-room Blakes hotel in London, and then spread across the pond to New York, with the opening of Morgans hotel in 1984. From there, it slowly permeated throughout the world.
Yet, the wider the phenomenon spread across space and time, the further it deviated from that original, quaint, 50-room establishment in Chelsea. Suddenly the independent concept “sold out”, like an aspiring rock star, to become a commercial global enterprise.
What’s in a name?
The term “boutique”, though widely used, is difficult to define. The traditional Oxford dictionary definition encompasses the words “small”, “fashionable” and even “personalised services”, but these can be applied to much of the mainstream hotel industry as well. Speak to industry experts and concrete definitions are surprisingly hard to come by. According to Paul Kerr, chief executive of Small Luxury Hotels of the World (SLH), a boutique property is “a hotel with an intimate feel and highly personalised service, which offers a sense of the local surroundings and culture.”
To Calvin Mak, founder and chief executive of Rhombus International that manages the boutique Hotel de EDGE in Hong Kong, a relatively small property is in fact a prerequisite for the rest of the elements included in a conventional definition of the term “boutique hotel” to apply. “The ideal boutique hotel has 100 rooms or less so that service can be personalised. If a property has more than 400 rooms, it is not even fair to say that service can be personalised because the staff can’t even remember your face,” he explains.
The general manager of Blakes hotel, Marco Cilia, agrees. “By virtue, a boutique hotel cannot have more than 100 rooms because what really defines a boutique hotel is the personalised service, the bespoke offering and the private atmosphere.”
That all seems relatively clear cut until lines are blurred with the introduction of “lifestyle” and “design” hotels that have (for lack of a better word) a “boutiquey” feel but are not boutique in terms of size. Starwood’s spectacularly cool W Hotel brand, showcasing funky “boutiqueness”, calls itself a “lifestyle” hotel that promises to focus on the guest’s lifestyle choices from music to art and fashion. “A majority of W Hotels have 300 or more rooms, so we cannot be boutique. But, we have character and passion,” said Carol Chung, Starwood’s director of sales in greater China.
Design Hotels, an association of (you guessed it) design-based hotels, differentiate themselves from the traditional boutique market by focusing on “the design, hardware, infrastructure, as well as a holistic concept” of a hotel. Yet, their portfolio of properties also offer personalised service and local cultural integration, all of which boutique hotels claim they offer too.
Amidst all this confusion, the Stepford wives have also entered the market by offering their own interpretations of the boutique hotel. Hyatt launched Andaz and Marriott launched Edition with help from Ian Schrager (known as the father of “boutique” for founding Morgans Hotel Group), for example. Though none of these properties are small or modest from any angle, they are stylish and they do offer a taste of the local culture and bespoke services, thus creating a hybrid of large-scale brands with unique, independent styles.
The numbers game
In light of these new developments, the emerging pattern from this hodgepodge market seems to be that size doesn’t matter at all. The “new” boutique has shifted from a fixation on size to a focus on personality, which only reflects a healthy demand, states Kerr. “There is a growing demand for hotels which offer authentic experiences and a sense of their surroundings around the world, including emerging markets,” he explains.
Extensive research by Hyatt, before the launch of their “boutique” Andaz brand, points in the same direction. According to Tristan Dowell, the brand’s director for Andaz, the high demand for boutique hotels can be attributed to the growing market of tech-savvy “professional Bohemians, who are active members of the global creative class”. This market segment would rather “break down barriers between the hotel and guests” in a property that provides them with a “unique, local feel”; therefore they find traditional hotels unsatisfying.
This is true even when you look at the numbers behind it all. Even today, Blakes hotel sees a 75 percent occupancy rate throughout the year, of which 40 percent are business travellers.
The revenue per available room (revPAR) figures of boutique hotels are also consistently high. According to research from a hospitality consultancy, HVS Hotel Management, the average revPAR in 2009 for boutique hotels in London was £135 (US$220), compared with the average revPAR of £110 (US$179) across the whole hotel industry.
In Asia, there are similar signs of optimism with a slew of recent boutique openings and more properties in the pipeline across the region. SLH’s Asian portfolio jumped from two properties back in 1991 to 118 member hotels today, which reflects a thirst for something unique in the Asian market. Other boutique hotels that have recently opened across the region include Hotel Fort Canning in Singapore, and Hotel G in Beijing, to name but a couple, with more to open across Asia in the near future (see list below).
Do they mean business?
Despite the sparkly success of boutique hotels (and their spin-offs), they may not always be an ideal business hotel because of their raison d’être.
From the outset, boutique properties strive to offer a unique experience. However, for most business travellers there isn’t any time for surprises no matter how pleasant they are. When you strip down to the core essentials, all a traveller needs is a comfortable bed, a good shower, speedy internet connection and a convenient location (perhaps business facilities would also help). That quality expectation can only be met by the large chains that have the resources and manpower to do so. “Business travellers choose the big chain hotels for the comfort factor of knowing that they will find consistent standards wherever in the world,” explains Kerr.
Furthermore, for travellers trotting the globe with a corporate credit card and corporate loyalty accounts, staying at a large chain is almost obligatory. The large chains have mature and well-connected loyalty schemes that apply to both their hotel brands and a string of airline partners. In many cases, the points accumulated on a trip benefit the corporation, making it a no-brainer to have employees stay with the chains.
This is where the new generation of boutiques comes in. As Dowell puts it, Andaz has “the power of the Hyatt brand behind it – delivering consistent guest experiences and a refreshing take on a boutique-style hotel”. Andaz, Edition and even W remove the issue of standard inconsistencies and loyalty programme issues yet still deliver “something different”.
Hotel associations pool together resources for marketing and sales so that an independent boutique property can focus on consistently meeting standard expectations. Before joining such groups, the hotel itself will need to meet certain criteria. According to Kerr, only 5 percent of hotels that apply to become a part of SLH are accepted to maintain consistent standards across their portfolio. “We have a team of mystery inspectors who visit our properties every 18 months to ensure that standards are being maintained,” says Kerr.
These associations are also launching their own loyalty schemes, which are still in nascent stages but will eventually grow. Preferred Boutique, a collection of properties under Preferred Hotels of the World, is affiliated with the group’s I Prefer loyalty programme. I Prefer has 16 airline partners and offers American Express cardholders extra benefits. SLH’s new The Club of SLH was recently revamped to include three tiers – Special, Loved and Honored – providing guests with special perks at each tier, including free room upgrades and complimentary breakfast.
From a distance, it always seems like the Stepford wives have it all. But boutique hotels have evolved for the better. Though they may not be strictly small anymore, they still offer a funky alternative for frequent travellers who are weary of seeing the same rooms in Brazil, Tokyo or Paris. Of course, not every boutique is a good boutique and the revolution still has further to go. For now though, all these developments are heading in the right direction and providing some excitement. All that is left is a guest’s willingness to step out of his or her comfort zone and try something new, because you never know what you’ll find – and that’s the point.
A touch of class
Andaz, Shanghai
This spectacular Andaz, in the Xintiandi district, is poised to swing open its doors later this year (no date at time of press), bringing the unique Andaz personality to the city’s ever-changing and saturated hotel market.
The style: This hotel, as with most Andaz branded properties, is a new type of boutique combining the bespoke design and service factors of a typical boutique hotel with the resources of a large chain. Andaz Shanghai will have 27 floors with a total of 307 rooms. Other facilities include three food and beverage outlets, a spa, gym and a rooftop Glass Pavilion surrounded by water for weddings or events.
The cool factor: The rooms will be equipped with LED mood lighting enabling guests to adjust the ambient colour to suit their mood. The lights are fitted on the ceiling but additionally the sink and translucent bathtub will also glow with whatever hue you choose.
www.andaz.com
Grace Hotel, Beijing
This boutique hotel, opening later this year (no date at time of press), will replace the former Yi House Hotel in Beijing’s quirky art and cultural hub, 798 Art District.
The style: With just 30 delicately designed rooms and offering bespoke services, this definitely belongs to the traditional boutique clan. The art-deco rooms are complemented by views of intricate graffiti pieces and statues in the hotel’s courtyard. Other facilities include a gym, a business centre, library and the Yi House restaurant.
The cool factor: The courtyard, a piece of art in itself, is excellent for cocktail events.
www.gracebeijing.com
Hotel Éclat, Taipei
This new contemporary art hotel, a part of SLH (Small Luxury Hotels of the World), opened early last year in Taipei’s Da-An district, close to the landmark Taipei 101.
The style: Definitely traditional boutique with just 60 rooms, extravagant interiors and art pieces by the likes of Salvador Dali, Andy Warhol, Yin Jun and Li Shan. Guests at the hotel also get exclusive complimentary access to the Room 18 nightclub and California Fitness gym. Other facilities include four food and beverage outlets and four meeting rooms.
The cool factor: The hotel spoils guests with exquisite in-room amenities, from Montblanc stationery to the Molten Brown toiletries and a CD and DVD library. The Éclat Suite is ultra-luxurious with Swarovski chandeliers, Murano glass sculptures and a dining room for eight.
www.eclathotels.com
Hotel Fort Canning, Singapore
Unlike the rest of the properties listed here, this one is housed in a heritage building dating back to 1926, which was once used by the British Far East Command during World War II. The hotel, which opened in November last year, retained the colonial architecture such as the multi-column façade while equipping it with modern amenities.
The style: With just 86 rooms and suites, this too is a traditional boutique hotel. Other facilities include a spa, gym, pool and two unique eateries – the Glass House and Gattopardo.
The cool factor: The Battle Box, a World War II bunker located nine metres underground where the historic decision was made to surrender Singapore to the Japanese in 1942, has been retained and is now a museum that can be used for events.
www.hfcsingapore.com
