Big brands killing boutique image
Big-box brands risk watering down the boutique segment with cookie-cutter offerings that fail to evoke a sense of place, according to panelists during the Hunter Hotel Investment Conference.
Samantha Worgull of hotelnewsnow said panelists insisted that boutique hotels are typically defined by their location and contain some sort of unique design or décor aspect to show that. The speakers agreed that what they dislike most about the brands expanding into their space is the overall lack of a true boutique guest experience.
“Large companies, large-scale chains turning themselves into boutiques are only bastardising the business in my opinion,” said Paul Ruffino, senior VP of Kept Hotels & Resorts, during a panel titled What is so special about owning and operating boutique & lifestyle hotels?
“What (brands) have done is they’ve seen what happened. And the big chains, in their defense, all they’re trying to do is do what people want,” said Larry Spelts, director of asset management at Charlestowne Hotels. “But there again, once there are 100 of this new boutique hotel, it has achieved ubiquity and you’re no longer unique. You’re no longer authentic to your locale because there are 100 of you.”
“The key to boutique hotels is bring to life the community and essence of the community in that boutique guest experience, because at the end of the day, that’s really the differentiator,” said Tom Griffiths, executive VP Americas for Worldhotels.
Mr Spelts said that based on his company’s research, the boutique and lifestyle guest is looking for three things: authenticity, discovery and well-being. “These attributes are driving the consumers when they’re looking to book their stay,” he said. “Our independent boutique hotels take more than their fair market share against the chain competition because they’re able to make that differentiation. They’re not ubiquitous.”
Mr Ruffino said that when the boutique concept was created, owners and operators wanted guests to feel like they were staying with friends. “That’s what you lose, in my experience, with the big brands,” he said, adding brands that use the boutique moniker are diluting the product.
“The only problem I have is that boutique will lose its relevance,” Mr Ruffino said. “The big brands aren’t going to stop. They’re not going to stop calling themselves boutiques. They’re just going to point the finger at somebody else.”
