Something’s happening on the hotel scene, and if you’ve blinked, you might have missed it. Boutique hotels, once niche and novelty, are now quietly becoming the go-to for business travelers—and that should have traditional business hotel brands very worried.
I’ve stayed in more than my fair share of hotels over the years—loyalty program mainstays, luxury flagships, and plenty of independents trying to punch above their weight. But lately, it’s the boutique properties that are consistently showing up with sharper experiences, smarter layouts, and frankly, better value. They’re winning travelers like me not because they’re quirky or hip (though some are), but because they’re actually better—and that’s a problem for high rise Marriotts and Hiltons of the world.
Let’s dig into what’s shifting—and why the old-guard business hotel has more to lose than they probably realize.
Design, But Not Just for Instagram
Boutique hotels figured out a long time ago that you don’t need fifty shades of beige to appeal to the business crowd. In fact, many of us appreciate a room that doesn’t look like it was designed by committee in 2006.
But this goes beyond wallpaper and Edison bulbs. These hotels are rethinking layout and function. Need a workspace that’s not just a corner desk with a bad lamp? Want a bathroom with outlets where you actually need them? How about in-room espresso that doesn’t taste like burnt plastic? The boutiques are delivering. And they’re doing it without the bloated conference space that sits empty 90% of the time.
It’s not all about aesthetics—it’s about utility. And boutique hotels, without legacy brand standards to uphold, can move faster to match what travelers actually want. It’s also about personality. Most boutique property has a story, a piece of originality that adds to the experience, lore, and appeal beyond the service quirks and hard product.
Loyalty Isn’t What It Used to Be
For years, the traditional business hotel has survived on the stickiness of loyalty programs. Travelers put up with less-than-inspiring properties in exchange for points, upgrades, and late checkout. Marriott famously Bonvoyed its 100MM loyal fans and its hotels routinely flout the rules of the program. IHG and Hilton have massively inflated charts, though there’s still value to be found. Even Hyatt, my personal preference, requires 60 nights a year for Globalist status but can be difficult to find in some markets, and thus, difficult to stay.
Loyalty fatigue is real. Devaluations, limited award availability, and endless “enhancements” have taken the shine off the top tier levels. And when boutique hotels partner with programs like Mr & Mrs Smith, Tablet, or even leverage platforms like iPrefer or SLH, they give you a loyalty-lite option that’s sometimes more rewarding in practice than the branded chains. My clear favorite in this category remains Tablet for its selection of properties and involvement in the Michelin Key program, but few have loyalty program affiliations.
Even worse (for the big guys), business travelers are increasingly being allowed to book outside of program-preferred chains. If the boutique hotel’s offering a better experience, location, and a comparable rate, why settle for run-of-the-mill?
They Know the Neighborhood—And That Matters
Business travel isn’t all lanyards and lobby bars anymore. More travelers are extending trips, mixing in leisure, or just wanting a break from the box. Boutique hotels often win on location—popping up in real neighborhoods, not just office parks off the freeway. Food and beverage are often destination restaurants in their own right, free from national contracts and thriving on their independence, they can be edgier, more experimental, and unique.
This shift in geography matters. You’re not just closer to cool dinner spots—you’re seeing the city in a way business hotels rarely allow. It’s a different rhythm. Less fluorescent lighting, more street-level charm.
And for remote or hybrid workers? These spaces feel more natural as pop-up offices for a few days than the cookie-cutter tower that closes the lobby café at 2 PM.
What’s at Risk for the Big Brands?
In short: everything.
If the boutique hotel movement continues its creep into the business category—offering meeting rooms, fast Wi-Fi, a real breakfast, and flexible check-in—the legacy business hotel’s USP starts to evaporate.
Brands that once relied on volume contracts and status-driven loyalty are now in a race to modernize. And in some cases, it’s too late. The younger workforce, especially, doesn’t see the value in brand names if the experience is impersonal, uninspired, and overpriced. They’ll book the boutique not to be different—but because it’s better.
And here’s the kicker: many boutique properties are being scooped up by the big brands. Hyatt’s acquisition of The Standard, Hilton’s growing Tapestry Collection, and Marriott’s Autograph Collection are attempts to bottle the boutique magic while keeping loyalty members in the ecosystem. Some of these “soft brands” are more about slapping a new label on the same tired experience but for true loyalists, they represent an opportunity to join the local and independent approach while knowing that a big brand will stand behind the experience.
In some cases, brands have done a fantastic job of giving loyal travelers new options and growing their own presence. In others, it falls short of capturing the charm that travelers seek.
The Shift Is Subtle, But It’s Happening
This isn’t a death knell for the Sheratons and DoubleTrees of the world—but it is a warning. If they don’t innovate beyond free cookies and PowerPoint-ready ballrooms, they’re going to lose a slice of their core audience. And this expansion model will be tougher. For the hassle, paperwork, and lawyers involved, acquisitions only make sense at a certain size – well above one-off success story properties. Further, it flies in the face of all of those brands desire to be “asset-light” which entails managing and marketing the property but not actually owning it.
But there’s a larger pie available when brands get it just right. If I can still earn points while staying somewhere with a bit more personality and a pour-over coffee bar in the lobby? That’s the kind of business travel I’ll gladly extend and it looks increasingly that I am not alone.
What do you think?
You didn’t present any data. Is there any to support your premise? This all seems like conjecture.
My assumption would have been the opposite, that boutique hotels are dying, or at least losing their edge. Marriott’s acquisition of CitizenM seems like a great example of this.
You shouldn’t read travel blogs and expect to see evidence. Just trust his feelings.
I’m not saying he’s wrong, just that my perception is different.
Interesting. I haven’t shifted much of my business travel over to boutiques because I just look for the hotel closest to clients that meets minimal standards of acceptability, and that’s usually going to be a DoubleTree or Marriott.
For personal travel, however, I’ve significantly moved my stays away from the big brands. Even though I’m lifetime bonvoy platinum, I see so little value from the program now that I’ll never go out of my way for it. The biggest reason, though, is cost inflation at the top end of the brand chart. We often spend $500-1,500 / night on leisure travel, and in most markets the 5-star boutiques or smaller chain hotels give you much more than the Ritz, STR, or PH. You pay a significant premium for the brand affiliation for which you get nothing beyond the ability to earn points, and in the era of constant devaluations I no longer care about that.
This has probably been true longer than I appreciate. It clicked for me, though, in the past 1-2 years when I had stays at the very mediocre St Regis Bermuda and an exceptional 20-key boutique near Amalfi in close succession.
I have found myself gravitating toward the boutique brands of Hyatt, Marriott, etc. over the typical larger business hotels because the experience is so much better than often the hotels are in MUCH better shape. In my experience, the major brands are not investing in their business brands, resulting in a very subpar product.
But without a bar in the lobby where will (some of the) business travelers meet hookers?
Would be interesting to see a case study in a particular city of a boutique hotel versus a respective large full service Hyatt or Marriott.
Ditto what PHLFlyer said. On the odd occasion that I’m traveling out of town for business, the only real criteria is proximity to wherever I’m supposed to be going. If it’s a boutique and it’s within policy, great, but I’m not really looking for boutique vs. chain.
Personal travel is another story. I usually am going boutique (or a regional chain not affiliated with the bigs) because that’s often the best way to avoid bulls*** “resort” or “destination” fees. The fact that the hotels are often more practical for my needs and provide legitimately useful freebies for booking direct is a bonus.
I personally gave up on hotel loyalty a few years ago and have shifted to boutique hotels mainly in Europe. Most of my stays in England, Italy, France, Spain and Greece have been in boutique hotels usually small properties with few rooms but delivering a much more unique experience and fantastic service. Usually breakfast is included, there is no nickel and dime and it makes you feel more like a local vs a “number”. You get a more customized experience in these properties.
Location is most important, but I tend to stay at big hotels only if I am attending a conference there. And anecdotally, I think there are a lot fewer conferences than there used to be, and the remaining ones are much smaller, I suspect part of the trend against work travel in general.
You’re kind of painting with a broad brush here. I guess it would help if you clearly laid out what a boutique hotel is. Is it not part of a chain? A place that emphasizes the location? Is it a hotel that lacks desks in the room so you’re forced to go to the lobby and deal with hipsters and influencers playing foozball and humble bragging about microbrews?
Presuming you’re talking about an independent hotel rather than part of a chain there by definition are no absolutely required prerequisites. I have no problem with independent hotels but it generally takes a fair bit of research to make sure the place is a good fit for me as opposed to a Grand Hyatt for example, where I know that certain standards will be met without having to verify beforehand.
@Christian identifies well the broad and general aspect of this post. That is, what is a boutique hotel? As to your definition, Kyle?
Independent hotels are barely independent anymore so it’s hard to understand the term boutique as meaning what you imply. They somehow at some point are attached to some program unless it’s Mabel’s Bed and Breakfast in Peoria. I mean, boutique is really what? Does that even exist? There are luxury hotels, smaller luxury hotels, soft luxury hotels, large brand cookie cutter convention hotels, mid size lifestyle hotels, mid-size business hotels, budget minded properties, long term stays, etc etc etc. Where is boutique in this? What is it even? There are a few very small specialty hotels in the world that are completely indie but hardly enough to make large brands “eat their lunch.”
Hyatt, Bonvoy, Hilton, IHG, Accor, GHA, IPrefer, Four Seasons, Aman, Rosewood, MO, Pen, LHW are all laughing at this. Because in the end they control probably 90% of the hotels in the world and are eating their lunch just fine.
Hotels diversify brands within their brand to appeal to different demographics. These are vertical offerings no different than any company seeks. All do fine within the context of what they are appealing to. Bob and Martha from Sioux Falls are not going to stay at The Standard. Nor is Hep Howdy from Austin going to stay at the Hyatt Regency Deerfield. So, your point?
The real diversifying is between the US hotel chains domestically and international.
Looking from Europe the chains are simply not competitive and benefits so watered out that its a joke! As a European business traveller I see their footprint becoming more scarce exept the big holiday destinations.
I have been top tier with 2 US chains and mid with one. Today I am spending money on regional chains, with way higher benefits and recognition plus what ever makes sence for my travel patterns.
And I haven’t even touched the quality of a lot of full service hotels.