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DEVELOPMENT: ONE OF A KIND
One of a Kind
WITH EXPERIENTIAL TRAVEL IN HIGH DEMAND, THE FUTURE REMAINS BRIGHT FOR BOUTIQUE HOTELS, ACCORDING TO KEY DEVELOPMENT EXPERTS.
ACCORBrett Forer, Vice President Development, Pacific
DURING MY 16 years in development at Accor, I’ve witnessed the incredible surge in demand for boutique and collection brands. These segments are now among the fastest growing in the hotel industry, with the luxury, premium and midscale categories all seeing rapid expansion. Guests today are not just looking for a place to stay; they are socially connected, worldly travellers seeking personalised, authentic, and uniquely local experiences.
Whether in city or regional locales, hotels that offer a unique identitybe it through distinctive design, rich heritage, or an exceptional location - are captivating travellers who desire more than just accommodation. They seek accommodation that elevates their travel experience and provides a sense of occasion.
Ennismore, the fastest-growing lifestyle hospitality company where Accor holds a majority share, exemplifies this trend. We are thrilled to introduce three highly anticipated hotels in Australia over the next year – 25hours Hotel The Olympia in Sydney, Mondrian Gold Coast and Mondrian Residences Gold Coast at Burleigh Heads, and Hyde Perth –all making their Australian debut in 2025. In New Zealand, Ennismore will open JO&JOE Auckland next year.
Our new Handwritten Collection brand is also perfectly positioned to capture the growing demand in the boutique market. This global portfolio of unique hotels enriches our collection brands segment, with three new additions in Australia alone: Hotel Morris Sydney, Hotel Woolstore 1888 Sydney, and Wonil Hotel Perth.
Additionally, our Tribe brand, known for its high-growth trajectory across the globe, caters to lifestyle travellers who value well-curated spaces. This year, we are excited to debut Tribe in New Zealand with the opening of Tribe Auckland.
Accor has become a partner of choice for leading ownership groups and independent hotel owners, drawn by our unmatched brand spectrum, strong global commercial distribution channels, and seamless transition processes.
There is strong interest in our Ennismore, boutique and collection brands, and we are actively exploring numerous opportunities to expand these unique offerings across the Pacific. As we continue our growth, we remain dedicated to delivering exceptional experiences that resonate with today’s discerning travellers.
BWH HOTELS AUSTRALASIARod Munro, Managing Director
EXPERIENTIAL TRAVEL AND emotional connection continue to be drivers in travellers seeking boutique and lifestyle hotels. With the increased demand for personalised stays and one-of-a-kind services, developers are profiting from the boutique trend. Hotels have become the springboard for guests to encounter a destination’s food, art, fashion and entertainment, with the property acting as an experience in its own right.
In recent years, the industry has seen a subtle shift from large scale hotel developments to smaller, personalised boutique hotels and extended stay accommodations.
BWH has responded to this shift and has seen increased demand for soft brand products as hoteliers seek out the distribution channels of powerhouse brands to achieve higher occupancy, ADR and RevPar while maintaining their own exclusive identity.
Characterised by their focused design elements, intimate scale and overall cool factor, BWH Hotels boasts hard and soft boutique hotel brands tailored to the developer’s needs: Aiden and WorldHotels Collection encompassing WorldHotels Luxury, WorldHotels Elite, WorldHotels Distinctive and WorldHotels Crafted.
As brands centred around distinctively immersive experiences capturing the spirit of the destination, WorldHotels Collection and Aiden properties around the world create an emotional connection with their guests. With no two properties alike, the brands showcase a distinctive identity that draws from the destination it’s in.
As a segment that continues to grow, BWH Hotels
Asia Pacific boasts an expanding pipeline of Aiden and WorldHotels Collection properties which is set to boost the brand’s growing portfolio of lifestyle and boutique hotels.
EVTNorman Arundel, Director of Hotels and Resorts
IN AN ERA where consumers are under increased cost-of-living pressures, the boutique hotel sector remains a vibrant and expanding part of the hospitality landscape. At EVT Hotels & Resorts, we are witnessing firsthand that the demand for boutique accommodation offerings is not only holding steady but continuing to grow.
The appeal of boutique hotels lies in their ability to offer unique, personalised experiences that elevate holidays and business travel into memorable occasions. Despite the current economic pressures, many consumers are prioritising spending on special experiences, often choosing boutique hotels for their charm, individuality, and the sense of exclusivity they provide.
EVT is proud to be actively expanding our higher end boutique hotel portfolio with distinguished properties such as The Old Clare and Harbour Rocks Hotels in Sydney, The Inchcolm in Brisbane, as well as the recently added Alex Hotel in Perth. These additions not only enhance our overall EVT Hotels & Resorts offering, but also reflect our commitment to maintaining the highest standards in boutique hospitality.
Equally important is our dedication to the mid-market segment, where we are making strides with The Ultimo in Sydney, the newly refurbished Pensione Perth, and Hotel Motel in Adelaide. These properties exemplify how boutique hotels can cater to diverse budgets while still delivering exceptional, unique experiences.
The future for boutique hotels is bright. With ongoing investments in both luxury and mid-market segments, EVT Hotels & Resorts is poised for continued growth in this dynamic sector, fulfilling the desires of travellers seeking both uniqueness and value in their stays.
TFE HOTELS John Sutcliffe, Director of Development
BY DEFINITION, A boutique hotel is “the only one of its kind and unlike anything else” and, whilst it is clear that the hotels in our Collection portfolio belong, the one thing that they all have in common is their individuality. Each hotel fits perfectly within its location, due to the vision of their owners.
For TFE, the Collection portfolio has never been stronger with The Eve Hotel Sydney set to open in the Wunderlich Lane lifestyle precinct in Surry Hills/Redfern neighbourhood later this year. Hot on its heels, the Hannah St. Hotel is on track to open in Melbourne’s Southbank neighbourhood in 2025.
Whilst these properties face the same headwinds as most construction projects in the current environment, pleasingly there is no decline in the attraction of our Collection brand. TFE is continually being approached by developers seeking a genuinely unique hotel brand, and we continue to progress the design of soon-to-be announced design-led Collection hotels across Australia and New Zealand.
Collection hotels help to create destinations that are unique to their location, where these exceptional, one-of-a-kind hotels act as a keystone to large neighbourhood precincts. This, along with unsurpassed service aligned to each locale, results in market leading revenue performance and substantial returns for owners. This market performance coupled with TFE Hotel’s continued focus to align commercial terms with owner’s requirements, mitigates current challenges and enables hotel opportunities to stack up.
TRIO CAPITALKyu Baek Kim, Vice President
THE DEMAND FOR boutique hotels continues to rise, extending into the upscale and midscale segments. This shift is evident as global operators, such as Accor with Handwritten Collection and Wyndham with Trademark Collection, move downstream. Corporate giants like Hilton and Hyatt are also entering this space by acquiring or partnering with boutique brands, but it remains to be seen whether these recent acquirers can preserve the unique character of these properties.
Experiential travel is another key trend, especially in leisure markets, where consumers are increasingly valuing unique experiences and gravitating towards quality offerings, as seen at Mamaka by Ovolo in Bali.
In terms of opportunities, hotel conversions are becoming more attractive due to high construction and financing costs. This is particularly true for tired, generic hotels in need of reinvention, especially in markets where boutique and lifestyle options are still emerging. Similarly, smaller, independent hotels struggling to keep pace with new trends or considering an exit post-Covid also present potential for conversion.
However, challenges persist, including a lack of liquidity pressure to facilitate value-add plays at the asset level, a bidask price gap, and a lack of transactional activity in recovering markets like Bali and Phuket. Additionally, high development costs further hinder the initiation of new projects, reinforcing the trend towards conversions, as noted with larger players strategically moving into this space.
SALTER BROTHERSMatt Harris, Director, Development
THE BOUTIQUE HOTEL segment, characterised by its intimate size and unique style, has seen a significant rise in popularity over the past decade.
As travellers increasingly seek out personalised experiences and distinctive accommodation, boutique hotels have emerged as a preferred choice for many.
This dynamic segment is often driven by strong demand and new openings, where guests are seeking unique, local, sustainable, personalised and immersive service and experiences. Where previously confined to regional areas (country or beachside retreats), urban offerings are now prevalent.
By catering to specific segments, such as millennials, solo travellers, couples, or business travellers, boutique hotels can create niche markets. Focusing on a target audience, boutique hotels can tailor their offerings and marketing strategies to meet their needs and preferences, as well as create a loyal customer base. Boutique hotels can also differentiate themselves by adopting a specific theme, concept, or style, that appeals to their niche market.
Boutiques present a number of other opportunities. Personalised wellness offerings create unique experiences and often increase stay length. Many boutique hotels are also enhancing their dining options to include local cuisine, prepared with locally sourced ingredients. Some of the ongoing challenges include strong competition, unknown branding and lack of loyalty programs.
Sustainability is a key consideration for guests within the boutique segment, but it’s not just about eliminating single use plastics at Salter Brothers. A key pillar is our approach to sustainable regeneration of existing buildings either through value adding to the properties we acquire or adaptive reuse. This is also one of the hallmarks of sustainable boutique resorts and hotels. By breathing new life into historic buildings and revitalising forgotten spaces, these assets reduce their environmental footprint and add character to their offerings.
Salter Brothers’ progressive move into retreat/boutique style properties indicates confidence in the market. Within our portfolio, we have employed a strategic approach to the boutique properties acquired, where value add results in positive outcomes for owners and guests alike. In our retreat fund, we are currently working on uplifts at Lilianfels, Milton Park, Kingsford and across the Spicers portfolio. On completion, these properties will balance environmental stewardship with luxurious boutique experiences.
