Custom research paper on Boutique Hotels: The Rising Trend in Hospitality

The first generation of boutique hotels had many similar characteristics. They were often housed in historical buildings a few blocks from downtown. Thanks to tax rebates for the restoration of historic buildings they could keep costs at a manageable level and redirect most of the money to the interior design. Moderation in construction costs, along with outstanding market performance creates opportunities for return of investment (Hachisu, 2008).
But in recent years, boutique hotels have mainly been built anew without the charm of antiquity, which is associated with boutique hotels. On the contrary, they thrive because of their modernity, fashionableness, style and technological equipment. As a result, construction costs increase, but get balanced by traditionally high rates in this sector (McGinnis, 2004).
The new wave of boutique hotels makes emphasis on the modern surrounding, high-tech electronics, thought-out selection of works of art and fashion individual features, such as living-rooms in the network of “W Hotels”. An example of a new generation of hotels may be the “W Hotel” under construction for the 225 rooms in Hoboken, New Jersey, located on the bank of the Hudson River opposite to Manhattan (McGinnis, 2004).
The project appeared back in 2001 when brothers Michael and David Barry from Applied Development proposed to build a hotel and residential building of the “W” in Hoboken, which was then just beginning to develop. And now the construction of 26-storey building is at full swing. In December, when the hotel opens, visitors will see the beautiful panorama with views of Manhattan, a bar with fireplaces and room for parties for 500 people. Occupancy perspectives now seem more serious than before – five Manhattan “W” hotels are often overcrowded. Hoboken is only the beginning. It is planned to open “W Hotel” in Oak Brook, Illinois, in La Jolla and Huntington Beach in California and in the Coconut Grove in Miami (O’Neill & Mattila 2010).
The largest independent network of boutique hotels Kimpton, which appeared in 1981, has recently opened “Palomar Hotel” in Arlington; it’s their third hotel in northern Virginia, in the suburbs of Washington, where they own seven hotels. The plans of Kimpton include the further development of the network in the province, for example, in Chantilly, Virginia, 25 miles from the city. Nine of the forty-two existing hotels Kimpton are located in the suburbs (O’Neill & Mattila 2010).
Recently new hotels have been opened by the brand “Hotel Indigo” owned by InterContinental in Newton, Massachusetts (near Boston) and in Fishers, Indiana (near Indianapolis). Half of the 17 existing and half of the 62 planned hotels “Hotel Indigo” are suburban, mostly near the prestigious shopping, business and residential centers. The main reasons for locating design hotels in province are as follows:
• Tourists are tired of traditional hotels. Business people and young people are especially demanding. For markets where luxury “W” is not required, Starwood formed a network of mid-market hotel segment “Aloft”. The first one will open this year in Lexington, Massachusetts, 10 miles from Boston. custom research paper
• Suburbs are developing. Local business is developing, and large retail chains such as Ikea, Pottery Barn and Target are helping to clear the way for democratization of design.
• The cost of land in major cities is growing. It is more profitable to open hotels in the suburbs, where land and construction are cheaper. In addition, there is less competition (Yanos, 2008).
So far, these hotels are mainly being opened in the suburbs of the 25 largest U.S. cities, where one can raise the price higher. And most of these hotels belong to the networks with limited services and no restaurants, such as the “Holiday Inn Express”, “Fairfield Inn”, “Hampton Inn’ and “La Quinta” (O’Neill & Mattila 2010).
In promoting and advertising boutique hotels, it is necessary to remember that these hotels are visited not because they are convenient or comfortable, but, primarily because they are fashionable and prestigious. Therefore, promoting a boutique hotel, like in the case of many other products on the market, where it is not the product but an image which is sold, should be done appropriately. The main task is, as marketing expert say, sending a message. This message in the case of boutique hotels is more important than ever. No matter what it would be: the formation of a special aura of the hotel connected with its location or atmosphere, or a beautifully presented history of the hotel; the main thing is to create a smart and unique product that is then necessary to properly convey to the audience, using various channels: direct marketing, media and public relations, profile travel agencies (O’Neill & Mattila 2010).

Conclusion

Thus, small exclusive boutique hotels have become more popular among affluent travelers, than the major hotel brands. In contrast to the well-known and comfortable hotels, peculiar with their uniformity, boutique hotels can offer an individual approach to the customer’s interests. In addition, nowadays there is a growing demand for luxury and extra comfort among the tourists, while each boutique hotel is the only one of its kind, allowing guests to feel their uniqueness and belonging to the higher strata of society (Parker, 2006).
The owners of hotel chains do not disregard such a promising market. Furthermore, according to findings by researchers from the hotel school at Cornell University, independent hotels have practically no chance to compete with hotel chains. Nowadays, realizing the dominant advantage of boutique hotels, the hoteliers have started creating chains of boutique hotels, which are supposed to have promising future (Aiemens, 2008).
PKF Hospitality Research predicts a relatively stable situation for the next few years. No significant jumps up or down in the hotel industry as a whole, occupancy rates and tariffs is not expected. Given the mobility of economic indicators of boutique hotels, it will be interesting to see how they will show themselves in a stable situation. According to PKF-HR, boutique hotels will continue to demonstrate high levels, but without previously observed strong deviations (Parets 2004).