The boutique hotel market has seen an increased demand for customised experiences within Australia.
CBRE Viewpoint has reported on the boutique sector and added that the tables had turned on the previously struggling industry. The market analysis found that boutique properties had outperformed larger international brands on occupancy levels, average daily rate, and revenue per available room since the Covid-19 pandemic began in 2020.
The study found that revenue per available room was 50 percent stronger than larger brands, occupancy rates were 21 percent higher, and average daily rates were 27 percent higher. Head of hotel research for CBRE Australia, Ally McDade, said that the major swing in traveller preference was due to behavioural changes that the pandemic had prompted.
“Over two years on, many of the resulting trends such as remote working and virtual conferencing, ‘staycations’, and the continued growth of social media use for destination ‘collecting and bragging’, have become embedded in our lifestyles, shifting guests’ preferences towards a highly personalised and hybrid approach to their hotel stay experience,” said McDade.
McDade added that boutique hotels' rise is partly due to the intimate and sophisticated offering and attention to design detail.
The report also indicated that the growth in the boutique sector was due to larger international brands needing to improve in corporate travelling and international visitors.
“The growth of this local traveller has resulted in demand for a curated hotel offering, which is being met by Australia’s new wave of boutique hotels that blend intimacy and sophistication, and authentically resonate with the feel of the city being visited.”
CBRE said that the resurgence in international travel and ongoing recovery of corporate travel will boost operational business for larger hotel trends.
According to McDade, the continued growth of the sector will largely rely on the ability of hotels to deliver a personalised offering. She said that taking advantage of trends such as ‘leisure,’ ‘workstations,’ and pet-friendly hotels.
“Social engagement, forward-thinking tech and an increased focus on eco-friendliness are also expected to play a role in catering to an ever-increasing demand for a hyper-personalised hotel stay, which boutique hotels are well placed to deliver due to their smaller size and independent operational structure.”
