What is a boutique hotel? Definition with examples

What is a boutique hotel?

A boutique hotel is a small, trendy, hotel that caters to guests by offering unique design, personalised service and a more intimate experience than larger hotel chains or groups.

For its part, the Cambridge Dictionary’s boutique hotel definition is a “a small, stylish, and fashionable hotel that is not part of a chain, or a group of hotels belonging to one company.”

We can also use examples to convey what we mean by a boutique hotel. Hanging Gardens of Bali, Italy’s Byblos Art Hotel, Emaho Sekawa Fiji, and Finland’s Arctic Light Hotel are very different places and offer a very different experience. But all show what a great boutique hotel offers: something a little out of the ordinary and definitely something more than just a place to stay—they offer a memorable experience.

Boutique hotels are an increasingly popular option for business and leisure travellers, making the sector a growing one. While we all generally have an idea of the ambience we can expect at a boutique hotel, what are the things you need to know if you’re considering opening a boutique hotel or transforming your hotel into something more boutique?

In this blog, you’ll find everything you need to know about what defines a boutique hotel and how to make yours special.

What is the difference between a boutique hotel and other hotels?

The difference between ‘boutique hotel’ and ‘hotel’ is that the boutique hotel has more independence, more uniqueness, and potentially more style.

Compared to the ‘average’ hotel, a boutique hotel will generally have a unique theme or strong personality and character.  Perhaps it’s a culinary-focused property or is housed in an historic building? Whatever it is, this special focus will flow through the hotel’s aesthetic, services, amenities and more.

All this adds up to style, as per the definition above. Much attention is paid to carefully selecting everything about the hotel, from pools to websites and beds. These hotels inspire and delight the senses.

Size also matters when you go boutique. With so much attention to style and detail, a boutique hotel typically offers less than 100 guest rooms. A smaller size also means hotel staff can deliver exceptional service and truly cater to the guest experience.

Difference between a boutique hotel and a bed and breakfast (B&B)

A B&B is often a private residence that has been converted to accommodate paying guests, with the owner still living there. This makes a B&B a very different experience from staying at a boutique hotel, which generally has more rooms along with round-the-clock services provided by professional staff.

Boutique hotel characteristics: What is considered a boutique hotel?

When deciding on the features for your boutique hotel, you need to think about how you’ll create the memorable and unique experience that boutique hotel guests will expect.

Of course, you’ll also need to offer the standard features hotels offer and guests expect these days – a clean, hygienic and comfortable room along with things like car parking, free Wi-Fi, TV, virtual concierge, room service, food and beverage options and a modern website.

But what are those features that will align with your hotel’s style or theme? Examples include:

• Art: local artists works displayed, exhibitions, art books in foyer, souvenir shop with affordable art
• Food: local products featured at restaurant, organic and sustainable options, artisan chocolates on pillow
• Luxury: high-end toiletries, pillow menu, spa options
• Health: on-site yoga, meditation sessions, water-based fitness activities, plant-based menu.

Boutique hotel examples

If you’re still struggling to find a clear answer to the question “what does ‘boutique hotel’ mean?”, it might help to look at a couple of real-world examples to better define that boutique hotel meaning, and get a clearer understanding of exactly what this type of property is.

Here are a couple of stand-out boutique accommodation providers that have stayed small and humble despite their success.

Boardwalk Boutique Hotel Aruba

Found on the tiny Caribbean island of Aruba, Boardwalk is a family run, adults-only boutique hotel located in the middle of a former coconut plantation. This tropical oasis is home to 49 private ‘casitas’, and offers guests a wealth of amenity, including two pools, an on-site bar and restaurant, dedicated tranquillity zones and a private patch of beach.

The focus of the hotel is on providing personalised and totally unique experiences. From private yoga classes to deep tissue massages, this hotel aims to get guests feeling their best, and caters their food to vegetarians, vegans and those with gluten intolerance.

Urban Boutique Hotel San Diego

Found in San Diego’s Little Italy, Urban Boutique Hotel is a small but ultra-fashionable property that targets style-conscious clientele. Housed in a historic building but retrofitted in contemporary style, and filled to the brim with art, the hotel effortlessly blends old and new, while also combining Californian and Italian style.

This is an independent hotel with just a few dozen rooms, which means each guest enjoys a more personalised level of service. The property is pet-friendly, and bilingual staff ensure every guest feels at home.

Which guest types does a boutique hotel attract?

A boutique hotel attracts guests looking for something a little different. Perhaps it’s something more “personal” or something that will give them a better insight into the location. Other times, it might be a secluded retreat they’re after or an opportunity to explore the quirkier side of a city.

Each boutique hotel will need to get clear on the types of guests they should be focusing on when marketing their hotel. 

Ways to enhance your small boutique hotel experience

In many ways, small boutique hotels have the upper hand over their bigger, chain hotel counterparts. Thanks to their size and independence, boutique hotels are uniquely placed to do things that large chains can’t.

Here are just a few ways boutique hotels can set themselves apart from both their bigger competition, and from other boutique properties:

Offer a personal touch

Guests who stay at boutique hotels are often looking for a more authentic experience – a chance to properly connect with your local area. The fact that you have a story, as well as a niche look and feel, really caters to this desire. You are the total opposite of mass-produced.

You can take the time to get to know your guests, and you can encourage them to interact with other travellers by providing welcoming common areas.

Add amenities

Small accommodation providers are able to provide better service to their guests, by providing unique and personal amenities. In fact, bedandbreakfast.com reports that 3 in 4 travellers say bed and breakfasts offer better amenities than hotels!

Think about the sort of guest you’re looking to attract, and build a suite of amenities that cater directly to them: a hearty breakfast, business facilities, massages, whatever they might be.

Take inspiration from the fact that:

• 84% of US travellers say a free breakfast is one of the most important amenities to them.
• 89% of US travellers say the availability of free in-room Wi-Fi influences their booking decisions.
• 89% of US travellers say availability of free parking influences their booking decisions.

Less important is the presence of a minibar or spa and beauty treatments.

Use your full decision-making power

Your property is fully owned (and in most cases operated) by you. Unlike chain hotels, you have total control over your budgets, renovation plans and hiring decisions.

And while that means that it does come with extra responsibility, it’s also very empowering. Don’t be shy in making brave and potentially impactful decisions around how your property will look and operate, and how you can invest in it to delight your guests. When you take a few calculated risks, you’ll find that a lot of them come off!

Invest in renovations

The look, feel and state of your boutique property is very important – especially in today’s world of online reviews. If you hear comments from guests that your property is looking a little tired, consider a renovation or revamp. It can be surprising the difference that a simple lick of paint can make.

Train your staff

Your people are your hotel’s most valuable asset, as they can make or break a guest’s stay. It’s also important to take time off as a boutique hotel owner, but you need to have confidence in your staff if you are going to truly relax on your break. Create sturdy systems and processes, and invest in training your staff up.

Implement technology

You may think that you can survive by managing your bookings using Excel spreadsheets and the like, but your capacity to grow will be seriously stifled. Because you only have so much time in one day, it’s better put towards revenue-generating activities, rather than frustrating and ultimately unnecessary admin work.An online reservation system can give you your time back by helping you run and grow your small accommodation business.

Little Hotelier was much simpler to use compared to other systems and most importantly, not as costly! We have seen a sizeable increase in bookings once we started with Little Hotelier.

Chris McHugh,

General Manager

The Woodman Inn

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Are boutique hotels profitable?

A boutique hotel gives you a head start when it comes to marketing – its distinct personality and style is part of the unique selling point that will help you sell your hotel. Boutique hotels with the right location, style or theme can also develop a cult-like following, with rooms booked out for months or even years!

However, starting up can also involve a larger than average initial outlay, and having a distinct aesthetic or theme can also mean narrowing your available target market. It’s also a time intense business, with attention to detail a critical part of this style of accommodation.

To boost your chances of turning your boutique hotel ideas into a profitable business, make sure you plan for success with the right metrics, features, management style and software.

What makes a boutique hotel successful?

A boutique hotel often stands out simply because of its smaller size and unique style, but to find true success it needs to stand out for other reasons.

It needs to offer many of the amenities and services that guests can find at the bigger end of town, while delivering a unique experience.

 Let’s look at some tips for managing a successful boutique hotel, the difference-making features that separate the best hotels from the rest, and the boutique hotel software that can set your hotel up for success.

Your boutique hotel: What’s the measure of your success?

What is boutique hotel success? And how do we measure progress towards that goal?

Your definition of success will be personal:a certain revenue target, social media followers, a KPI like occupancy rate. Whatever you want to aim for, that goal should be SMART: Specific, Measurable, Achievable, Relevant, and Time-Bound.

Business metrics are a handy way to objectively measure success. Average room rate, occupancy rate, and RevPAR are the three key revenue metrics for small hotels. To start boosting these metrics and achieving these goals, boutique hotels should concentrate on these three areas:

1. Creating a strong brand and distinct identity

To compete with larger brands, you need to stand out with a strong story and visual identity. Celebrate the things that make you different and tap into the reasons guests choose to go boutique.

2. Understanding and reaching ideal guests

Having a clear picture of the type of guests you should be targeting, and being able to reach that target market and speak directly to them, can be a game-changer for boutique hotels. 

3. Delighting guests

Happy and satisfied guests, the type who will rave about your hotel to friends, post flattering shots of your property on social media and leave glowing online reviews, are perhaps the ultimate indicator of success.

12 crucial boutique hotel management tips

To achieve the areas of focus above, there are many specific tasks and actions you should prioritise, including:

• Get clear on your unique selling point: The point of difference that will help sell your hotel.
• Invest in your brand: A professional logo, thoughtful colour palette, good quality pictures and memorable messaging will help potential guests build familiarity and trust with your brand.
• Design your rooms and property with that special boutique flair: You might need to replicate the big hotels in some areas, but design isn’t one of them, so get creative.
• Tell your story: Reinforce your brand, its history and its values, via a smart digital marketing strategy.
• Get social: The opportunities are endless (and affordable) for promoting your business on social media.
• Create guest profiles: Writing down everything you know about your ideal guests and use that to inform business decisions.
• Think local: Guests are visiting your hometown so integrate your local community and culture into your marketing, amenities and everything you do.
• Monitor your online reviews and feedback: Encourage fans to go public with their flattering feedback and treat both positive and negative reviews as a learning opportunity and an insight into how you can improve things.
• Make it easy for guests to find you: Have a distribution strategy and look at online travel agencies, SEO, channel management software and more. 
• Don’t undersell yourself: Get your pricing strategy right and remember that guests are prepared to pay more for a boutique experience.
• Focus on your front desk: Always look for new and innovative ways to improve and streamline your front desk operations.
• Make it personal: A big reason guests choose boutique over big is to feel like a VIP rather than a room number – pay attention to the little things that will make your guests feel welcome.

Must-have features to be successful with a boutique hotel

The features of a hotel are a big selling point for potential guests, and boutique hotels need to focus on providing as many “large hotel” features as possible while including extra “boutique” features that’ll help the hotel stand out. 

The things that guests have come to expect at larger hotels, and that boutique hotels can also easily offer, include:

• A great website
• Easy booking and check-in
• Incentives and loyalty reward programs
• Free Wi-Fi and other in-room technology such as app-based guest services
• Group activities
• Food and beverage options
• Comfortable beds
• Clean rooms and quality furniture

The more personalised and creative you can make your features, the more successful you’ll be. You should also work to craft a guest experience that makes your property a preferred choice:

• Can you offer a pet-friendly experience?
• Can you incorporate quirky design or a “themed” experience?
• How does your decor take people away from the everyday?
• Are you exploring ways to highlight local art and food?
• How can your turndown service add another layer of comfort and contentment?
• How can you create a certain “feeling” when people walk through the door?
• How can you go above and beyond when it comes to personalised service? A pillow and toiletries menu? Customised welcome treats?

Boutique hotel software

Boutique hotel software can help you compete with the big hotel chains while showcasing your unique qualities as a boutique property. 

It can save time for both you and your guests, untangle complexities, reduce the chance of errors and generally fast-track your success.

An all-in-one hotel property management system can help you to:

• Build a modern, responsive website
• Take direct bookings from your website through the use of a booking engine
• Market your property on hundreds of channels while avoiding double bookings with a channel manager
• Track and measure which online sales channels are generating the most bookings and get insights on daily operations
• Keep an eye on the competitors
• Manage reservations with drag and drop technology
• Streamline housekeeping tasks
• Manage your property on-the-go

Boutique hotel ideas to stay ahead of the competition

Technology, marketing strategies and developing an online presence might seem like things that large hotel chains and corporate hotel brands need to prioritise. But they are critical for boutique hotels too.

How can you keep pace with the biggest players? Follow these industry best practices.

Social media

Create profiles on the top social networking sites.

Facebook is one of the most powerful social networks, particularly for businesses in the travel industry.

It’s a great way to showcase photographs and provide updates about promotions at your hotel. Don’t forget about Instagram, Twitter and possibly Snapchat!

Get listed on the most widely used review sites.

TripAdvisor is an absolute necessity for all businesses in the travel industry, particularly boutique hotels. Also create a listing for your hotel on Google.

Monitor the reviews you receive, and interact with those who leave you feedback.

It’s important to respond to all feedback — including negative reviews. When responding to a negative review, be courteous and professional at all times.

Do your best to prove to that person, as well as your future guests, that you are committed to customer satisfaction.

Loyalty programs

Like big chains, you should offer incentives or reward programs to guests, as these encourage loyalty while also allowing you to collect more information about your guests, which can help you to better cater to them.

Millennials in particular love programs that provide them with rewards for ongoing business. You can design a program that works specifically for your boutique hotel, and that complements your overall business plan. The key is to provide your guests with real rewards that will excite them and entice them to continue to book with you.

Post-stay emails

Send departure emails to all of your guests. This is a great way to solicit feedback about their stay and to stay connected with them after they check out.

Make sure that your departure emails are consistent with your business goals and brand identity. Your online booking engine should allow you to customise your emails with your branding.

Direct booking website

Your boutique hotel website should be just as functional as a hotel chain website. It should have several key features that are offered on all large hotel websites, including:

• Online booking capability
• High-resolution photo galleries
• Mobile-friendly design
• Social media integration
• Visible ‘book now’ button
• Accurate room rates and live availability

Distribution strategy

Design a distribution strategy that is similar to the big chains. While big hotels have brand recognition and large marketing budgets, you can create a distribution strategy that is just as effective by investing in a property management system (PMS) that includes a channel manager.

All the tech

Invest in the same tech that guests have come to expect when they stay in big hotels:

• A mobile app for your small hotel that offers remote check-ins and  or mobile room service ordering
• Smart TVs and streaming services
• Free (and fast) WiFi 
• Bedside and common area charging stations

Online reviews and feedback

Social proof is critical for boutique hotels, as it allows a potential guest to get a sense of your hotel from other travellers who have already stayed there. Big hotels know the importance of online reviews, so invest a lot of time in soliciting feedback and engaging with guests on the most popular online review sites. This is the easiest way to showcase your commitment to customer service.

In many respects, your small hotel has all the tools it needs to beat out the big competition.

Learn these lessons from the larger hotels in your area, and use them to set your independent property apart from the nondescript chain hotels in your destination.