One-of-a-kind Night Stay
A differentiated hotel industry grants growth to boutique, independent operators.
The S&P 1500 for the hotel, restaurants & leisure industry index has grown by 50% over the past year. In the first half of 2021, top hotel group stocks and REITs have outperformed the major indexes, signaling an accelerated path to full post-pandemic recovery and growth. This new growth path may unlock opportunities for smaller players to attain bigger market shares in an industry traditionally dominated by big chain players.
The NoMad hotel brand, owned by Sydell Group, caters to its local clientele’s tastes with a “creative retail store and exhibition space” called THE LAB in their Los Angeles location, as well as a highly bespoke boutique with curated merchandise and sartorial services in New York. With a “hotel on rails” concept, innovative French player Midnight Trains is taking advantage of the extensive European rail network and weaving the luxury hotel experience into low-carbon travel. Launching in 2024, their trains will run between major cultural centers in Europe and feature customizable private rooms with private bathrooms, a fine-dining restaurant, and an App to integrate services. For good measure, independently minded travelers may find unique, luxury, and lesser-known hotels through organizations like Small Luxury Hotels of the World (SLH).
Big-name players, in the meantime, are very much reinventing the ecosystem and employing a boutique-feel approach. While growing at the rate of up to 100,000 rooms every year, Hilton created Tempo by Hilton, positioned to be “elevated but approachable,” and Motto by Hilton, branded as “affordable, coveted, and urban.” These sub-brands aim to capitalize on the advantages of big franchise management as well as the attractiveness of boutique experiences. Likewise, Marriott's collection of brands now incorporates 31 brands and Accor's brand architecture has 44 names, branching out to cover diverse market segments.