According to a report by Allied Market Research, the global boutique hotel market was valued at $9.8 billion in 2023 and is projected to reach $18 billion by 2033, with a compound annual growth rate (CAGR) of 6.4% over this period.
One of the primary factors driving the growth of boutique hotels is the shift in consumer preferences towards unique travel experiences. These accommodations, known for their charm and personalized service, cater to travelers seeking authenticity and immersion in local culture.
Additionally, boutique hotels are increasingly appealing to environmentally conscious travelers due to their commitment to sustainability and eco-friendly practices.
The report highlights that boutique hotels have become a welcome alternative to traditional corporate lodging, offering elegant amenities, modern technology, and convenient locations in business districts. These hotels are designed with work-friendly spaces, provide excellent service, and pay attention to the finer details.
The boutique hotel market also shows regional differences. In North America, the sector is thriving particularly in the U.S., with major cities like Los Angeles and New York leading the way. In Europe, France, Italy, and the United Kingdom are key markets.
Boutique hospitality is also gaining popularity in the Asia-Pacific region, especially in Thailand, Japan, and Bali. In Africa and Latin America, Cape Town and Buenos Aires are noted as key centers for boutique hotels.
