Boutique hotels were strongest rate performers in 2013 London hotel market

BDO’s Hotel Britain report assessed information from the large hotel groups, individual properties and boutique operators including Firmdale Hotels, Red Carnation Hotels, Rocco Forte Hotels, and

Malmaison.The report found that London boutique hotels were the only segment that managed to increase their rates considerably in 2013, “thanks to burgeoning demand for such properties”.

“Despite a 5.1 per cent increase in average room rate, occupancy remained fairly stable at 78.5 per cent, resulting in a rooms yield growth of 4.6 per cent. The boutique segment was the year’s best performer in London, even as the top end (usually a more stable category) experienced the lowest increase in rooms yield, up by a modest 0.6 per cent to £199.28,” said the report.

“Regular travellers, including new segments like the ‘millennials’ generation, continue to choose the boutique segment as an alternative to more traditional upscale accommodation. Hotel groups are recognising the importance of this bracket and introducing new boutique hotel concepts such as W,” it added.

Moving on to the UK market in general, BDO predicted that the millennials will be a major influence on the hotel market as a whole: ” Fast-changing times means that the industry must race to keep up, devote more time and resources to new media to appeal to evolving demographics. In particular, new market segments such as the millennials (broadly speaking, those born in the mid-80s onwards) are already driving the changes with their embrace of technology and their need for fast and personalised service.”

The growth of the millennial sector will be one of the driving forces behind the growth of the “budget boutique sector”: “The outlook for future transactions will also hinge on the brand diversification of the budget sector. This includes the introduction of the Hub by Premier Inn concept, the planned refurbishment of Travelodge hotels across the UK, and the entry or expansion of other brands such as Moxy, Tune and Z Hotels.”

Source:-Boutique Hotels