
Boutique hotels are a relatively new concept to the hotel industry. Until the early 90s, the standard model had typically been a large full-service hotel with numerous banquet and meeting rooms. The large size and its economies of scale, helped insure greater profitability. Along came the concept of boutique hotels which was contrary to that formula. The typical boutique hotel is less than 100 guest rooms, limited service, zero to one boardroom, and any food and beverage outlets are generally outsourced. The emphasis in boutique hotels is on selling guest rooms (where the profit margins are significantly higher than in banquets and meetings) by enticing a guest with its high design, the promise of a unique experience, and lower rates. READ MORE