A Look at boutique, soft-brand hotel supply and performance
06/04/2021|2:32:16 PM|CoStar

Independent boutique hotel supply and soft-brand hotel supply has grown in the past decade, and hotels in these segments have weathered the pandemic better than branded hotels in some cases.

According to The Highland Group’s Boutique Hotel Report 2021, independent boutique hotel supply has grown 5% in the past 10 years while soft-brand collection supply has increased 19%.

The interactive chart below shows a few examples of independent boutique hotels and soft-branded properties in the U.S. 

Independent Boutiques

The Highland Group defines independent boutique hotels as design-centric unique properties that are not affiliated with a major national franchise but can be grouped under the same ownership. Examples include Dream Hotel Group and Graduate Hotels.

At the end of 2020, there were 850 independent boutique hotels in the U.S. with 93,238 rooms.

In terms of distribution, the most boutique hotel rooms were found in the upper-upscale and luxury class segments at 37% and 34%, respectively. Independent boutique hotel rooms make up 19% of the upscale class and 10% of the midscale class.

Soft Brands

At year-end 2020, soft brands comprised 455 hotels with 69,528 rooms in the U.S. The upper-upscale class segment has the largest distribution of soft-brand rooms with 58% of inventory while the upscale class makes up 23%. The average size of a new-build, soft-brand hotel is 138 rooms.

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