Week 2 Assignment

Week

2 Case Study

: Boutique

Hotels

Currently, there is no one definition of a boutique hotel; however, most people think of a boutique hotel

as a small, upscale hotel with a hip environment where the customers feel connected to the staff. The

beauty of the boutique segment is that it provid

es a wide range of opportunity for developers. Unlike

the name implies, boutique properties no longer have to be small to fit into the category; they can have

hundreds of rooms. What hotels do need to have to enter into the expanding segment is panache, so

me

roster of unique features, services, or amenities that sets them apart and easily confirms that sense of

exclusivity upon guests by association.

—

Stefani C. O’Connor, Executive News Editor, Hotel Business,

10/061 Even though people seem to disagree on t

he definition of boutique hotels, most commentators

agree that they have four major defining characteristics. First, as a general rule, boutique hotels put

more emphasis on design and architecture than traditional chain hotels.2 Incorporating cutting

-

edge

design and décor and featuring celebrity architects and designers’ work, boutique hotels look very

distinctive inside and outside. These interior and exterior designs create the “personality” or “identity”

of each hotel.3 For example, each guest room in Li

brary Hotel in New York City has a different theme,

such as romance and music. The goal of these hotels is to create a unique, intimate, and stylish

environment that makes every single stay different, even for repeat guests. Boutique hotels try to

entertai

n their guests by creating a theatrical atmosphere that attracts all the senses though the use of

design, color, lighting, aroma, and music.4 The second common feature is superior personal service.5

Intimacy and familiarity between hotel staff

and guests are emphasized; for example, a warm, caring

attitude on the part of management and

staff is encouraged, and staff members acknowledge guests by

name.6 Also, boutique hotels are known to provide a higher quality and wider range of guest amenities;

such hotel properties surpass the standard amenity set by providing whimsical offerings such

as stuffed

goldfish, pillow menus, and complimentary candies and nuts. Technology is also widely used to enhance

the cutting

-

edge design, fashionable image, and convenience. Every room has high

-

speed Internet

access, a flat

-

screen TV, a DVD player, and ot

her latest technological gadgets.7 The third feature is the

number of rooms. Most commentators agree that boutique hotels should not exceed 150 rooms to

maintain the intimacy between the guests and the hotel staff, and the personalized attention by the

sta

ff. Recently, however, there seems to be no upper limit on the maximum number of rooms; for

example, among properties operated by Ian Schrager, Paramount Hotel has 594 rooms, and Hudson

Hotel has 821 rooms.8 The last characteristic is the market that is at

tracted to boutique hotels. These

hotels generally target customers who are in their early twenties to mid

-

fifties, in the mid

-

to upper

-

income brackets. Also, these hotels’ corporate accounts include media, fashion, entertainment, and

advertising companie

s that are attracted to the trendy design and lively atmosphere.9 Although

boutique hotels might vary in many aspects, they can be grouped into two types based on their

location.10 The first type is city destination hotels. These hotels are in urban edgy a

nd chic

neighborhoods in major cities like New York, London, San Francisco, and Miami. However, even though

many boutique hotels are still located in major cities, more companies have recently been targeting less

cosmopolitan

1 Richard Miller and Kelli Washington, Hotels and Reports 2007, (Georgia: Richard K. Miller & Associates,

2007). 2 Lucienne

Anhar, “The Definition of Boutique Hotels,” HVS International, December 13, 2001,

January 29, 2008; http://www. hospitalitynet.org/news/4010409.print. 3 Jones Lang Lasalle Report. 4

Anhar, “The Definition of Boutique Hotels.” 5 Paula Drayton and Kristy Ro

dwell, “Boutique Hotels: An

Australian Perspective,” September 2001, January 29, 2008; http://www.hotel

-

online.com/Trends/Andersen/2001_

Week 2 Case Study: Boutique Hotels

Currently, there is no one definition of a boutique hotel; however, most people think of a boutique hotel

as a small, upscale hotel with a hip environment where the customers feel connected to the staff. The

beauty of the boutique segment is that it provides a wide range of opportunity for developers. Unlike

the name implies, boutique properties no longer have to be small to fit into the category; they can have

hundreds of rooms. What hotels do need to have to enter into the expanding segment is panache, some

roster of unique features, services, or amenities that sets them apart and easily confirms that sense of

exclusivity upon guests by association. —Stefani C. O’Connor, Executive News Editor, Hotel Business,

10/061 Even though people seem to disagree on the definition of boutique hotels, most commentators

agree that they have four major defining characteristics. First, as a general rule, boutique hotels put

more emphasis on design and architecture than traditional chain hotels.2 Incorporating cutting-edge

design and décor and featuring celebrity architects and designers’ work, boutique hotels look very

distinctive inside and outside. These interior and exterior designs create the “personality” or “identity”

of each hotel.3 For example, each guest room in Library Hotel in New York City has a different theme,

such as romance and music. The goal of these hotels is to create a unique, intimate, and stylish

environment that makes every single stay different, even for repeat guests. Boutique hotels try to

entertain their guests by creating a theatrical atmosphere that attracts all the senses though the use of

design, color, lighting, aroma, and music.4 The second common feature is superior personal service.5

Intimacy and familiarity between hotel staff and guests are emphasized; for example, a warm, caring

attitude on the part of management and staff is encouraged, and staff members acknowledge guests by

name.6 Also, boutique hotels are known to provide a higher quality and wider range of guest amenities;

such hotel properties surpass the standard amenity set by providing whimsical offerings such as stuffed

goldfish, pillow menus, and complimentary candies and nuts. Technology is also widely used to enhance

the cutting-edge design, fashionable image, and convenience. Every room has high-speed Internet

access, a flat-screen TV, a DVD player, and other latest technological gadgets.7 The third feature is the

number of rooms. Most commentators agree that boutique hotels should not exceed 150 rooms to

maintain the intimacy between the guests and the hotel staff, and the personalized attention by the

staff. Recently, however, there seems to be no upper limit on the maximum number of rooms; for

example, among properties operated by Ian Schrager, Paramount Hotel has 594 rooms, and Hudson

Hotel has 821 rooms.8 The last characteristic is the market that is attracted to boutique hotels. These

hotels generally target customers who are in their early twenties to mid-fifties, in the mid- to upper-

income brackets. Also, these hotels’ corporate accounts include media, fashion, entertainment, and

advertising companies that are attracted to the trendy design and lively atmosphere.9 Although

boutique hotels might vary in many aspects, they can be grouped into two types based on their

location.10 The first type is city destination hotels. These hotels are in urban edgy and chic

neighborhoods in major cities like New York, London, San Francisco, and Miami. However, even though

many boutique hotels are still located in major cities, more companies have recently been targeting less

cosmopolitan

1 Richard Miller and Kelli Washington, Hotels and Reports 2007, (Georgia: Richard K. Miller & Associates,

2007). 2 Lucienne Anhar, “The Definition of Boutique Hotels,” HVS International, December 13, 2001,

January 29, 2008; http://www. hospitalitynet.org/news/4010409.print. 3 Jones Lang Lasalle Report. 4

Anhar, “The Definition of Boutique Hotels.” 5 Paula Drayton and Kristy Rodwell, “Boutique Hotels: An

Australian Perspective,” September 2001, January 29, 2008; http://www.hotel-

online.com/Trends/Andersen/2001_