Boutique Hotel Market Report 2026

The boutique hotel market size has grown strongly in recent years. It will grow from $99.83 billion in 2025 to $106.46 billion in 2026 at a compound annual growth rate (CAGR) of 6.6%. The growth in the historic period can be attributed to growth of luxury tourism, demand for personalized hospitality, expansion of urban travel, rise of experiential lodging, growth of high-income travelers.

The boutique hotel market size is expected to see strong growth in the next few years. It will grow to $136.85 billion in 2030 at a compound annual growth rate (CAGR) of 6.5%. The growth in the forecast period can be attributed to increase in experiential travel demand, growth of sustainable tourism, expansion of lifestyle hotels, rise of premium domestic travel, digital guest engagement adoption. Major trends in the forecast period include rising demand for luxury personalized experiences, growth of design and theme-based hotels, increasing focus on eco-friendly properties, expansion of urban boutique hotels, growth of direct and online bookings.

The increasing popularity of experiential travel is expected to drive the growth of the boutique hotel market in the coming years. Experiential travel focuses on immersive and hands-on experiences that enable travelers to connect deeply with a destination’s culture, activities, and local lifestyle through unique and personalized experiences. This trend is fueled by a growing preference for authentic and meaningful interactions that go beyond traditional sightseeing, allowing travelers to form stronger connections with places and cultures. Boutique hotels support experiential travel by offering distinctive, personalized accommodations that reflect local character and cultural identity, creating a more immersive and memorable stay. For example, in November 2023, according to the World Tourism Organization (UNWTO), a Spain-based intergovernmental organization, international tourist arrivals rose by 22% in the third quarter of 2023 compared with the same period in 2022, and foreign tourism receipts were projected to exceed $1.4 trillion by the end of 2023. Therefore, the growing emphasis on experiential travel is fueling the expansion of the boutique hotel market.

Major companies operating in the boutique hotel market are adopting advanced technologies, such as app-enabled modern services, to strengthen their competitive position. App-enabled modern services are digital solutions delivered through mobile applications that simplify and enhance service delivery, offering guests greater convenience, efficiency, and personalization. For instance, in July 2023, Sonder Holdings Inc., a US-based technology-focused hospitality company, launched its first hotel collection, Powered by Sonder. The collection comprises a range of uniquely designed boutique hotels that combine distinctive local design with Sonder’s technology-driven operational model. Powered by Sonder includes 23 hotels across 13 markets, including Atala in Paris, Chambers in New York City, and Yelo Jean Médecin in Nice, each reflecting its local surroundings and individual style. These properties feature app-enabled services that allow guests to manage their entire stay - from booking to check-out - through the Sonder app, emphasizing self-service and modern convenience. The app enables functions such as mobile check-in, direct communication with guest services, and easy access to hotel amenities, delivering a seamless and integrated guest experience.

In July 2024, Room Mate Hotels, a Spain-based lifestyle hotel brand and lease management company, acquired Staying Valencia for an undisclosed amount. Through this acquisition, Room Mate Hotels expanded its presence in the boutique hotel segment, particularly within Valencia, increasing its footprint across Spain to a total of 32 properties and reinforcing its position as a leading boutique hotel brand. Staying Valencia is a Spain-based boutique hotel and aparthotel chain.

Major companies operating in the boutique hotel market are Rosewood Hotels And Resorts, Jumeirah International LLC, The Peninsula Hotels, Mandarin Oriental International Limited, The Ace Hotel, Six Senses Hotels Resorts Spas, Firmdale Hotels, Yotel Ltd., The Standard Hotels, The Hoxton, Ovolo Hotels, COMO Hotels And Resorts, Auberge Resorts Collection, 1 Hotels, The Pod Hotel, Design Hotels, Bunkhouse Group, Triple Creek Ranch, Farmhouse Inn, Kerzner International Limited.

Asia-Pacific was the largest region in the boutique hotel market in 2025. The regions covered in the boutique hotel market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the boutique hotel market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The boutique hotel market includes revenues earned by entities by providing services such as boutique dining experiences, spa services, and curated local tours or activities. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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