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RESEARCH IN BRIEF The UK’s

boutique hotel
What has influenced growth in the sector
UK’s boutique hotel sector?
169
Mandy Aggett
Plymouth Business School, University of Plymouth, Plymouth, UK

Abstract
Purpose – This paper aims to identify the factors that have influenced growth in the UK’s boutique
hotel sector, through the identification of attributes that attract consumers to these hotels.
Design/methodology/approach – The study methods included a review of the literature and a
survey of boutique hotel consumers in the UK.
Findings – Location, quality, uniqueness, services provided and the personalised levels of service
offered are identified as the top five attributes attracting respondents to these hotels. The growth of the
boutique hotel sector in the UK may be attributable to consumers seeking alternatives to the
standardised provision of more traditional accommodation.
Practical implications – Although this research has its limitations due to the low response rate,
many of the findings support those of previous studies and may assist boutique hotel operators in
meeting customer needs more effectively. Practical recommendations are made for existing boutique
hotel operators and those wishing to enter the market.
Originality/value – This paper is one of the first to investigate the growth of the UK’s boutique
hotel sector and the factors that influence the consumers’ decision to purchase this type of
accommodation.
Keywords Hotels, Small to medium-sized enterprises, United Kingdom, Consumer behaviour
Paper type Research paper

Introduction
The growth of the boutique hotel sector internationally is widely reported (Caterer
Search, 2005). A recent Key Note Market Report on hotels (Drewer, 2005, p. 6) relates
this growth to consumers searching for a more unique or special hotel, and reports
“rather than simply viewing the hotel as accommodation, clients are looking at the
hotel to provide an experience in itself.” Hotels in general have managed to gain a
higher profile as destinations (Drewer, 2005) and there appears to be scope for further
development of boutique hotels, with the sector currently outperforming general UK
hotel trading (Caterer Search, 2005).
Key players in this sector in the UK are identified by Caterer Search (2005) as
Malmaison, Hotel du Vin, Firmdale Hotels, Alias Hotels, Gordon Campbell Gray’s One
Aldwych, Myhotels, Eton Group and Christina Ong’s Halkin and Metropolitan.
Forsgren and Franchetti (2004) inform us that traditional chain hotels, such as Rezidor
SAS and Intercontinental, are now testing the market with the creation of their own
International Journal of
boutique brands. Hilton have opened their version of a boutique hotel in London, and it Contemporary Hospitality
is reported that Starwood are looking for a site in London for their “W” brand (Caterer Management
Vol. 19 No. 2, 2007
Search, 2005). Key boutique hotel groups already operating in the UK are currently pp. 169-177
implementing growth strategies. The sister groups of Hotel du Vin and Malmaison q Emerald Group Publishing Limited
0959-6119
plan to open another ten hotels in the UK by 2010, while newly created ABode Hotels DOI 10.1108/09596110710729274
IJCHM plan to establish hotels in key towns and cities throughout the UK over the next few
19,2 years. It is difficult to determine the number of boutique hotels in the UK, partly due to
the difficulty in defining these hotels; “there is no precise agreement on where the
boutique market even starts or finishes” (Caterer Search, 2005). Figure 1 illustrates
definitions found in the review of the literature.
An analysis of these definitions suggests that boutique hotels are contemporary,
170 design-led hotels with up to 100 bedrooms, which offer unique levels of personalised
service and high-tech facilities.
Freund de Klumbis and Munsters (2005) conclude that one of the main forces
driving the growth of the boutique sector is an increased interest in art, culture
and history (typical models of the concept behind boutique or design hotels). A
study conducted by McIntosh and Siggs (2005), investigates the reasons that
boutique hotel consumers in New Zealand choose to stay in these hotels rather
than more traditional accommodation. This study concludes that there are five key
dimensions setting the boutique sector apart from traditional offerings. These are
the “unique character”, the “personalised or personal touch”, the “homely feel of
the accommodation”, the “high quality standards offered” and the “value-added”
nature of the physical location and knowledge and culture of the hosts (McIntosh
and Siggs, 2005, p. 77). However, these conclusions are limited as they are based
on the findings of interviews with only 30 guests, and are therefore not
representative of the population.
The success of the boutique hotel sector may be attributable to standardisation and
commoditisation in the hotel industry. Boutique hotels, stress Victorino et al. (2005,
p. 559) provide an “excellent example of an innovative offering in an otherwise
standardised industry”. Freund de Klumbis and Munsters (2005, p. 5) explain:
[. . . this systematic standardisation of the hospitality product provoked a counter-movement
inspired by consumers searching for hotels with unique or sophisticated and innovative
characteristics, called boutique, design or lifestyle hotels.
Albazzaz et al. (2003, p. 4) agree, in their examination of the boutique hotel
phenomenon in the USA:
[. . .] a small but growing contingent of travellers, grown tired of staying in large,
personality-free hotels geared towards a mass audience, has begun to migrate towards a new,
more intimate breed of hotel.
These travellers, explain Albazzaz et al. (2003):
[. . .] purposefully seek out properties that are noticeably different in look and feel from
branded hotels, choosing an element of surprise over the more straightforward values of
consistency, comfort and convenience.
Forsgren and Franchetti (2004, p. 1) add, that the purpose of unique concept hotels such
as boutique hotels, is: “to differentiate from competitors by placing themselves in a
market niche through their image, lifestyle, design and style”.
The purpose of this paper is to explain the growth of the UK’s boutique hotel sector,
through the identification of the key attributes that attract consumers to this type of
accommodation.
 The UK’s
boutique hotel
sector

171

Figure 1.
Definitions of a
boutique hotel
IJCHM Methodology
19,2 The methodology used for this paper began with some exploratory research in the
form of a literature review, which helped to shape the research. The most significant
piece of research found, is that of McIntosh and Siggs (2005). This work informed much
of the present study, and some replication of this allowed several of their findings to be
tested on a new set of respondents. It was not possible to question the entire population
172 of boutique hotel consumers, as a sampling frame is not available. After much
consideration, it was decided that the most appropriate method of accessing these
consumers was to send questionnaires to boutique hotels, for the guests to complete
while visiting.
The second stage of the research involved the use of a pilot study in which the
questionnaire was tested on a number of boutique hotel consumers. The questions used
in the questionnaire were formulated as a direct response to the literature review, and
attempted to test the theories of other authors, and explore concepts yet to be
investigated. An electronic copy (as requested) of the pilot questionnaire was sent to
the human resource manager of a boutique hotel group to issue to guests.
Completed questionnaires took some time to be returned due to the demands of the
manager’s workload, and the fact that permission was not given to issue the
questionnaires to the guests at the hotels. Consequently, a copy of the questionnaire
was posted or e-mailed to regular guests. These were then returned to the manager and
forwarded to the researcher. As these questionnaires took some time to be returned, the
researcher found it necessary to refine the design and wording of the questionnaire
through other means. Colleagues were asked for their critical comments and advice,
which led to the adaptation and addition of a small number of questions. The main
questionnaire was subsequently altered on the recommendations of colleagues, and not
as a result, of an analysis of the pilot responses.
As there is no agreement on the size of the boutique hotel sector, nor a complete list
available of all boutique hotels in the UK, an accurate sampling frame for these was
unobtainable. Therefore, all 58 boutique hotels listed in the AA and RAC guidebooks
were included in a sampling frame (The AA, 2005; The RAC, 2006). Although these
guides do not include all of the boutique hotels in the UK, they do consist of an
adequate number of hotels spread over an appropriate geographical area. Given the
tight budget of the researcher, only 300 questionnaires were sent to the front office
managers of 30 hotels (ten questionnaires each), selected by sorting the list of hotels by
town or city, and targeting a hotel from each area. The response rate was very poor,
and only 27 completed questionnaires were returned (a response rate of only 9 per
cent). The data received were analysed using the statistical software package SPSS
14.0 for Windows.

Key findings
The pilot and main study questionnaires were completed by 44 respondents in total (17
pilot respondents and 27 main study respondents). As the response rate was so low, the
findings may not be generalised to the entire population of boutique hotel consumers.
However, the results may be taken into consideration in supporting or refuting
previous studies, and could give some indication of the views of boutique hotel
consumers. As the response rate for the main survey was so poor, the responses to
questions that are identical in both the pilot and main study are analysed together. For
the small number of questions that were adapted or added for the main study, the main The UK’s
study responses only are analysed. Of the sample, 63.6 per cent were female and 31.8 boutique hotel
per cent male. Among those who indicated their age group, the mode answer was 30s
(31.8 per cent of the sample), followed by 40s (22.7 per cent of the sample), and then 20s sector
(20.5 per cent of the sample).
With the intention of exploring the popularity of boutique hotels, participants that
stated they stay in this type of accommodation every time they go away (either for 173
business, leisure or both) were invited to explain their reasons for this. The responses
were as follows:
I like to stay in somewhere that’s a little different from the norm.
I like the individuality of these hotels and the friendliness of the staff. Large chain hotels are
the same wherever you go which I don’t like.
I like small boutique hotels that are different and not mainstream, and intimate.
I find the levels of service more friendly, personal and comfortable than larger chain hotels.
Good standards of accommodation, food, service etc. Pleasant atmosphere, good customer
service, good location.
Overall ambience, location, service, personal attention.
Service and privacy.
I like funky design hotels in which all the rooms are different. Although I stay there every
time I will experience something new, untypical, unique and impressive.
Good service and convenient location.
Concurrent themes here include the individuality and differentiated qualities of
boutique accommodation, the high levels of service, the personalised attention to
guests and the location of these hotels. This corresponds with the work of Albazzaz
et al. (2003), Forsgren and Franchetti (2004) and McIntosh and Siggs (2005). Other
insightful comments include reference to traditional hotels, which are described as
“mainstream”, “the same wherever you go” and, in comparison, not as “friendly,
personal and comfortable” as boutique hotels.
To address the objective of identifying the attributes of boutique hotels that attract
consumers to this type of hotel, participants were asked to select, from a list, those
attributes that influenced their purchase decision. The majority of respondents stated
they were influenced by the locations of these hotels (65.9 per cent of respondents) and
their quality (56.8 per cent of respondents). Those factors that are said to distinguish
boutique hotels from other forms of accommodation, such as design, uniqueness,
personalised service, and the homely feel, appear to have some significance in the
purchase decision, corresponding with the work of McIntosh and Siggs (2005), though
not as much as may be expected. Although an average of 33.5 per cent of respondents
specify that design, uniqueness, personalised service and the homely feel influenced
their purchase decision, an average of 66.5 per cent indicate that these factors did not
influence their decision. This suggests that boutique hotels are popular, not as a result
of their differentiated design, but because of their locations and quality. Nevertheless,
the top five attributes of boutique hotels identified in this study do bear a resemblance
IJCHM with those of McIntosh and Siggs (2005), as demonstrated in Table I, and may
19,2 therefore, be of use in supporting their findings.
Service is an important component of the hotel product, and is shown in the
literature review to be of a very high standard in boutique hotels. Both this study, and
that of McIntosh and Siggs (2005) identify the personalised service received at these
hotels as influential in the purchase decision. Although the participants of the study of
174 McIntosh and Siggs (2005) do not identify the actual services provided as influential in
the purchase decision, the participants of this study do so. In order to recognise the
services that attract consumers to boutique hotels, participants were asked to stipulate
the one service they most appreciate. This was an open-ended question, and therefore,
the results in Table II include facility attributes. The results indicate that the most
valued services of those responding to this question are room service (21.7 per cent of
respondents), cleanliness (17.4 per cent of respondents) and friendly and helpful staff
(13 per cent of respondents). It should be pointed out here that only 27 participants
responded to this question. However, the importance of the provision of room service
and friendly and helpful staff is consistent with participants’ partiality towards
personalised service.

Top five attributes

Table I. Aggett’s study (2006) McIntosh and Siggs’ study (2005)
Comparison between
author’s findings of the Location Location and knowledge/culture of host
top five attributes Quality Quality
influencing the purchase Uniqueness Uniqueness
decision and those of Personalised service Personal touch
McIntosh and Siggs (2005) Services provided Homely feel

Frequency Valid percent

Valid Suites 1 4.3

Room service 5 21.7
Privacy 1 4.3
Personal service from staff 1 4.3
Special offers/value for money 1 4.3
Friendly, helpful staff 3 13.0
Concierge service 1 4.3
Cleanliness 4 17.4
Design 1 4.3
Quality service 1 4.3
The gym 1 4.3
Comfortable bed 1 4.3
A well-lit car park 1 4.3
Table II. Clean laundry 1 4.3
Services valued by Total 23 100.0
study’s boutique hotel Missing System 4
consumers Total 27
As uniqueness is of some importance to participants, and is believed, by other authors, The UK’s
to have contributed to the success of boutique hotels, it is necessary to reveal the boutique hotel
design features most appreciated by consumers of these hotels. Participants were
asked to indicate, from a list, the design features that they most value. The results sector
indicate that unique interior architecture is favoured by participants (40 per cent of the
sample), followed by a unique building (20 per cent of the sample) and unique pieces of
furniture (17.1 per cent of the sample). This information may be of value to existing 175
operators when refurbishing properties, and also to those wishing to enter the market.

Conclusions and implications for practitioners

Growth in the boutique hotel sector has intensified competition in this sector, with
international hotel chains entering the market and boutique hotel groups expanding. In
order to identify the factors that have influenced growth in this sector, consumers were
asked to identify the attributes of boutique hotels that attract them to this type of
accommodation. This research may be of importance on a number of levels. An
understanding of consumers and the factors that attract them to boutique hotels will
allow owners/managers to improve the design of their products and services and
develop strategies that utilise their resources more effectively. Victorino et al. (2005,
p. 558) agree:
[. . .] by acquiring the vital information of why guests choose to stay at particular hotels, hotel
managers are better able to understand the attributes which drive guests’ purchasing
decisions. Furthermore, understanding the guests’ needs and desires is invaluable when
determining methods for improving company image.
The identification of key attributes could help towards supporting growth in this
sector, and may be of particular interest to anyone wishing to enter the market, as they
may gain an understanding of what is required of them in order to be successful. This
may include those with small hotels that are considering converting their properties
into boutique hotels.
The main reasons given for a preference for boutique accommodation, by those that
stay in this type of accommodation every time they go away, include the individuality,
high levels of service, personalised attention to guests and locations of these hotels.
These factors contrast with the provision of traditional hotel accommodation,
described by participants as “mainstream” and “the same wherever you go”. The
standardised offering of traditional hotels appears to have attracted consumers to
hotels that offer alternative accommodation, and this is likely to have influenced
growth in the UK’s boutique hotel sector.
The design elements and uniqueness of boutique hotels are recognised as a
differentiation strategy that allows boutique hotels to compete with branded hotel
chains. As they seem to be of particular importance to those with a preference for these
hotels (those that stay in a boutique hotel every time they go away), it is suggested that
design and uniqueness is a major driving force behind the growth of the sector. Design
features favoured by participants of this study include unique interior architecture,
unique buildings and unique pieces of furniture. Existing operators should consider the
use of unique interior architecture and unique pieces of furniture when refurbishing
their properties. Those wishing to enter the market should take into account the
preference for unique buildings that may be converted into boutique hotels. Examples
IJCHM of these include Alias’ Hotel Barcelona (a converted Victorian eye hospital), Hotel du
19,2 Vin’s Henley-on-Thames hotel (the old Brakspears Brewery), and the Salthouse
Harbour Hotel in Ipswich (originally a warehouse).
The top five attributes of boutique hotels identified in this study closely resemble
those identified in the work of McIntosh and Siggs (2005). Four of these attributes,
location, quality, personalised service and the uniqueness of these hotels, are
176 recognised in both this study and that of McIntosh and Siggs (2005) as being influential
in the purchase decision. The fifth attribute identified in this study, is the actual
services provided. Favoured services of participants include those services associated
with individual attention (room service and friendly and helpful staff) and therefore
support the theory that boutique hotels attract consumers wishing to experience a
more personalised service. The relatively small size of boutique hotels affords the
optimum conditions in which personalised service may be provided, and it is therefore
advised that the number of rooms in each of these hotels be kept to a minimum.
The majority of respondents specify that location and quality were the most
influential in the purchase decision, suggesting that the differentiators of boutique
hotels may be a secondary requirement. As the location of an existing boutique hotel
cannot be changed, this information is of little value to operators. However, those
wishing to enter the market are advised to consider the location of their hotels
carefully. All of the hotels targeted for this study are in urban locations, and are largely
located in city centres. For both existing and potential boutique hotel owners, quality
assurance may best be provided with the implementation of a quality management
system. The training of staff is vital in the provision of both quality and personalised
service, and operators must note the importance of this.
Although this research has its limitations due to the small sample size, many of the
findings support those of previous studies and the results may give some indication of
the views of boutique hotel consumers. The paper provides a possible explanation for
the growth of the boutique hotel sector through the identification of those factors that
attract consumers to this type of accommodation. More extensive research is required
to validate some of the findings of this study and allow more substantive conclusions
to be made. However, the findings of this study suggest that the growth of the boutique
hotel sector in the UK may be attributable to consumers seeking alternatives to the
standardised provision of more traditional accommodation, as proposed in previous
studies (Albazzaz et al., 2003; Freund de Klumbis and Munsters, 2005; Victorino et al.,
2005). Boutique hotels offer this alternative through design, uniqueness and
personalised service. While the locations and quality of these hotels have a major
influence on the purchase decision, it is suggested that it is the differentiated design
and high standards of service that attract repeat visitors.

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Corresponding author
Mandy Aggett can be contacted at: mandy.aggett@plymouth.ac.uk

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