Boutique appeal. Boutique hotels have collectively increased
in all performance indicators through June 2023 compared to the previous period
in 2022, according to new data from The Highland Group. Strong increases
in demand and revenues of 8% and 9%, respectively, continue to establish that
deviation from the generic sameness of traditional lodging is appealing to
travelers. The Lifestyle segment averaged the largest increases in performance,
while Soft Brands reported a 5-percentage point premium in RevPAR recovery
compared to the same class of U.S. hotels. Luxury class boutiques continue to
perform strongly; however, rate growth has stabilized, similar to all U.S.
luxury hotels during this period. Boutique hotel development is clearly
following an upward trend with a 29% annual increase in the pipeline of new
rooms projected through 2027.
China’s pipeline. China’s pipeline stands at 3,666
projects/678,965 rooms, according to new data from Lodging Econometrics. At the
close of the second quarter, the pipeline is slightly less than the all-time
high of 3,711 projects/704,101 rooms set in the second quarter of 2022. Projects
in the under construction stage in China rose slightly year-over-year (YOY),
closing the quarter at 2,655 projects/478,703 rooms. At the close of the second
quarter, new construction starts and new project announcements in China
increased YOY to stand at 160 projects/28,256 rooms and 236 projects/36,163
rooms, respectively.
Asia Pac pipeline. The pipeline in Asia Pacific, excluding
China, was at an all-time high at the end of 2Q23 with 1,936 hotels/401,766
rooms, according to Lodging Econometrics data, luxury, upper upscale, and
upscale projects dominating. Countries with the largest pipelines include India,
followed by Vietnam and then Thailand. Asia Pacific cities with the largest
construction pipelines include Bangkok, Kuala Lumpur, Jakarta and Melbourne. The
top franchise companies are Marriott International with 280 projects/60,566
rooms, Accor with 206 projects/47,052 rooms, and IHG Hotels & Resorts with
record project counts of 164 projects/34,227 rooms.
Red Carnation adds Edinburgh. London-based Red Carnation
Hotel Collection is set to launch in November its first hotel in Scotland, the
30-room 100 Princes Street in Edinburgh. The space was the former home of a
membership club known as the Overseas League. The hotel marks Red Carnation’s
19th property.
Bob W growth. Short-term rental brand Bob W has added a
property in Helsinki’s Kaartinkaupunki area, securing the former Hotel Rivoli
Jardin building. This property was acquired by real estate private equity firm Slättö
and is now being leased to Bob W. The addition of Bob W Kaarti gives the brand
32 operating properties across 20 cities in nine European countries. The
property is expected to open to the public in 2024 and will feature 55 rooms
and suites with kitchenettes, a social kitchen and co-working space as well as
a communal sauna, paying homage to Helsinki’s apartment building sauna culture.