Luxury and soft-brand collections performed the best
Boutique hotels started the second quarter of 2020 with significant revenue-per-available-room (RevPAR) declines like the overall hotel industry, according to The Highland Group’s “Boutique Hotel Report 2021.” However, many boutiques began reporting strong RevPAR improvements in the latter part of the year as they began to decelerate average rate discounts.
“This yield management strategy, most widely seen in the upper upscale/luxury class of independent boutique and soft brand collections, positions these boutique hotels in a stronger position to recapture rate in the recovery years,” says Kim Bardoul, partner at The Highland Group.
Upper-upscale and luxury independent boutique and soft-brand collections experienced less of a RevPAR loss in 2020, as rate discounting decelerated in the last half of the year, according to the report. Supply losses were notably more for both class g