Expanding Tourism Industry and Increasing Number of Solo Travelers are Driving the Boutique Hotel Market

Published: Oct 2024

Global boutique hotel market is anticipated to grow at a considerable CAGR of 6.2% during the forecast period (2024-2031). The market growth is driven by the increase in the number of solo travelers across the globe. Solo travelers prefer boutique hotels since they are smaller, more private accommodations with all the amenities that a solo traveler requires. Additionally, the increase in travel-related online influencers is also proliferating the market’s growth.

The global boutique hotel market is segmented by hotel type (business hotels, suite hotels, airport hotels, resort hotels, and others), by booking type (phone booking, online booking, and in-person booking), by tourist type (domestic and international), by tour type (independent traveler, package traveler, and tour group), and by geographies (North America, Europe, Asia-Pacific, and Rest of the World). 

Browse the full report description of “Boutique Hotel Market Size, Share, and Trends Analysis Report by Hotel Type (Business Hotels, Suite Hotels, Airport Hotels, Resort Hotels, and Others), by Booking Type (Phone Booking, Online Booking, and In-Person Booking), by Tourist Type (Domestic and International), and by Tour Type (Independent Traveler, Package Traveler, and Tour Group), Forecast Period (2024-2031)” at https://www.omrglobal.com/industry-reports/boutique-hotel-market

Market Dynamics

The online booking segment is expected to hold a prominent share of the global boutique hotel market, owing to the increasing use of smart devices and the ease of online booking. In addition, there is also a considerable increase in the use of various online booking platforms such as Agoda, Goibibo, and others, which further prompts travelers to use online platforms. The easy hotel check and hotel review aids in the identification of the best hotels. Online platforms also offer packages with various discounts, low-cost hotels and flights, and other perks, which increase their demand among travelers. 

The European region is expected to hold a prominent share of the global boutique hotel market, followed by the North American market. The regional growth is attributed to the growing number of tourists in several Western countries including the UK, London, Canada, and others. Additionally, the growing domestic and international business tours are also contributing significantly to the market growth.  

The major players in the global boutique hotel market include Four Seasons Holdings Inc., Hilton, Hyatt Hotels, InterContinental Hotels Group Plc, and others. The market players are contributing significantly to the market growth, by the adoption of various business strategies, such as collaborations, mergers and acquisitions, product portfolio diversification, and more. 

Recent Developments 

  • In July 2024, Kempton, part of IHG Hotels & Resorts’ luxury and lifestyle portfolio, opens Kimpton BEM Budapest, its first boutique luxury hotel. It is a 127-room enclave, celebrating Budapest’s historic and cultural landscape.  
  • In July 2024, ARCHER® Hotel Old Town Alexandria, a boutique property in Alexandria’s Old Town, officially joined the Archer Hotel collection. The property has a brick courtyard, Alexandria's only hotel spa, and 107 contemporary guest rooms, including 15 suites.


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