Global boutique hotels market set to double by 2033, led by key tourism hubs – AMR

GLOBAL – According to Allied Market Research, the global boutique hotels market is set to double in value by 2033, with the US, France, Italy, UK, Thailand, Bali, and Japan leading the expansion as travelers increasingly seek unique and personalized lodging experiences.

The global boutique hotel market is poised for significant expansion, according to a new study by Allied Market Research titled “Global Boutique Hotels Market Analysis and Forecasts, 2024-2033.”

The report highlights key trends, growth drivers, and regional dynamics, projecting the market to rise from US$9.8 billion in 2023 to US$18.0 billion by 2033, with a compound annual growth rate (CAGR) of 6.4%.

Boutique hotels, typically featuring 10 to 100 rooms, distinguish themselves through unique architecture, high-end services, and personalized experiences that reflect local culture and history.

The increasing demand for bespoke travel experiences, particularly among Millennials and Generation Z, has been a major factor in the sector’s growth.

These travelers seek accommodations that offer individuality and exclusivity over standardized hotel chains.

Social media has also played a crucial role in amplifying this trend, as travelers are drawn to visually striking, distinctive destinations.

Another driver of growth is the rising number of business travelers opting for boutique hotels, drawn by their blend of premium amenities and tailored services suited for both work and leisure.

The expansion of online booking platforms has further fueled market accessibility, allowing potential guests to explore detailed descriptions, images, and reviews before making reservations.

Regionally, North America remains a stronghold, with the U.S. leading the market in cities like Los Angeles and New York.

Europe also boasts an established presence, particularly in France, Italy, and the UK, while the Asia-Pacific region continues to experience growth in high-end travel destinations such as Thailand, Bali, and Japan.

Meanwhile, emerging markets in Africa and Latin America are gaining momentum, with destinations like Cape Town and Buenos Aires attracting travelers seeking authentic, locally inspired stays.

The boutique hotel industry is shaped by major hospitality brands leveraging their distinct collections. Marriott International leads with its Autograph Collection and The Ritz-Carlton, while AccorHotels strengthens its presence with MGallery and SO/.

Hyatt Hotels Corporation has expanded its boutique offerings through Andaz and Alila, alongside IHG’s Kimpton Hotels & Restaurants and Hilton Worldwide’s Curio Collection and Canopy by Hilton.

These brands continue to redefine boutique hospitality by emphasizing individuality, luxury, and immersive experiences.

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