What the 2025 numbers are really telling us about boutique hotels
What the 2025 numbers are really telling us about boutique hotels
Boutique hotels are outperforming the broader hotel industry by a widening margin
Kim Bardoul (Bardoul Hotel Advisors)
https://www.costar.com/article/1969001935/what-the-2025-numbers-are-really-telling-us-about-boutique-hotels?
By Kim Bardoul
Each year when we publish The Boutique Hotel Report, there is an obvious question: Is boutique just a trend or a durable structural shift in how travelers choose where to stay? After more than a decade of tracking this segment, our 2026 edition gives us the clearest answer yet.
The U.S. boutique hotel sector closed 2025 with total room revenues up 4.2% over 2024, the segment's smallest growth rate in five years. But set against a 1.7% revenue decline recorded by comparable traditional U.S. hotels over the same period, it speaks to something more than a good year. It speaks to a segment that continues to hold its value.
The performance gap is reality, not a trend
Boutique demand rose 3.1% in 2025 while comparable traditional hotels saw demand fall 0.6%. Occupancy held at 67%, matching the broader U.S. average, but the rate story is where the advantage becomes unmistakable: an average daily rate of $258 against $192 for comparable traditional hotels is a premium that proves a unique overnight stay is worth more.
In our view, there is a direct commercial return on differentiation. Boutique hotels give guests something a flagged, brand-standardized property typically does not — a reason to choose a place, a neighborhood and more than just accommodation. This commands a premium and builds loyalty that flows into direct bookings and lower distribution cost, a compounding advantage traditional operators are, in many cases, losing to.
Luxury indies are proving that authenticity is a financial asset
The standout finding in this year's report is the performance of indie luxury boutiques: a 6% revenue gain, an average rate of $452, and RevPAR of $307, comfortably ahead of luxury U.S. hotel RevPAR of $263. What we find most significant is not the spread itself, but what sustains it. The luxury traveler is not buying a room; they are buying an experience and, quite frankly, a version of the world that reflects who they are. Independent boutiques, unconstrained by brand standards or mandates to replicate a prototype, deliver that at a level hard to match.
Consolidation is a transformation, not a retreat
Another consequential story in this year's report is consolidation. Total boutique supply grew to 338,158 rooms across 2,313 properties, but composition has shifted sharply. Lifestyle hotels expanded 6% to nearly 127,000 rooms, now 38% of all boutique supply. Soft brand collections grew 4.3% to 115,367 rooms. Meanwhile, the indie boutique segment contracted 10.1% in a single year, falling to 95,846 rooms.
Much of this reflects indie boutique groups such as Graduate, Bunkhouse and Origin, among the well-known names, recently affiliating with franchise platforms. We have also seen outdoor hospitality concepts such as AutoCamp, Under Canvas and Postcard Cabins enter franchise structures, now moving in our data from indie boutiques to lifestyle hotels. This begins to broaden the definition of boutique beyond the urban or small town hotel in ways that will reshape the category over the next decade.
Our interpretation: Indie boutique culture is not in retreat. Franchise platforms have recognized that boutique identity is commercially valuable and are structuring products to capture it at scale. What we should be watching for is whether they can preserve what makes the boutique sector compelling and successful.
True indies are holding
Despite the headline contraction in indie supply, the properties that remain committed to genuine independent identity are performing with strength. Our income and expense sample of 97 hotels achieved 61% occupancy at an average rate of $356, generating gross operating profit of more than $43,000 per available room. These are not marginal assets, they are high-performing businesses built on creative storylines, distinctive food and beverage, and a deep connection to place. Considering supply contraction what will likely remain is a sharper focused and very capable sector.
The opportunity ahead
The boutique pipeline points to significant near-term growth. Lifestyle hotels have more than 11,000 rooms reported as under construction, a potential 9% increase in supply; while soft brand collections have nearly 7,700 rooms in the pipeline, representing a potential 7% increase. But the geographic gaps tell a more compelling story. Lifestyle hotels and soft brand collections represent less than 1% of hotel inventory in 27 and 18 MSAs, respectively. And although true pipeline reporting for indie boutiques cannot be verified, their current representation can. Indie boutiques represent less than 1% of supply in 45 MSAs, with 23 markets having no indie boutique presence at all.
These are real opportunities. We see significant development potential in these gaps, particularly for operators willing to invest in genuine place-based storytelling rather than a templated version of a boutique product.
We remain convinced of one thing: Boutique hospitality outperforms not because of aesthetic fashion, but because it solves a fundamental issue. Travelers do not want to be anywhere; they want to be somewhere. The operators who build businesses around that insight, with rigor and creativity, continue to demonstrate one of the most durable competitive advantages in hospitality.
The Boutique Hotel Report 2026 is available from Bardoul Hotel Advisors.
Kim Bardoul is the owner of Bardoul Hotel Advisors.
Europe’s Extreme Heat Is Now Shutting Down Train Routes
Andrei Antipov/iStock
https://www.fodors.com/world/europe/experiences/news/europes-record-heat-wave-is-causing-major-train-delays-and-cancellations
Europe’s extreme heat wave is disrupting rail travel, causing train delays, cancellations, and infrastructure issues across France, Belgium, the U.K., and beyond.
Europe is in the midst of a record heat wave, and it’s impacting high-speed rail operations.
France recorded its hottest day ever on Tuesday, with the daytime high in some cities reaching 104 F. Paris’s Eiffel Tower and Louvre Museum restricted visiting hours, while schools and other government offices also experienced schedule disruptions.
Also impacted were high-speed train services in many countries on the continent. France cancelled 71 intercity rail services on Monday on account of high temperatures. In many countries, high-speed rail infrastructure, while modern, is still aging. It was also conceived and designed in cooler eras. In France and Belgium, some of the high-speed trainsets are several decades old, and not built for the realities of the hotter summers now commonplace.
In the United Kingdom, passengers were told to avoid rail travel unless necessary. London’s Gatwick Express train suspended some early afternoon express trains between London and Gatwick Airport, although slower local services remained in operation.
In France and Belgium—which use the same train sets—the air conditioning units in many older train cars will turn off if they get too hot, forcing operators to take them out of service.
Another problem faced by rail systems in hot weather is the tracks themselves. Many of Europe’s high-speed rail networks are electrified, with trains receiving power from overhead electrical wires called catenaries. The heat can cause the wires to expand and droop, blocking rail lines because drooping electrical wires become a snagging hazard for passing trains.
National rail services have also reported out-of-service signals and tracks warped by extreme heat, increasing the risk of derailment. The rail systems all have modern safety backups that alert engineers and system monitors of technical problems—whether the tracks or overhead electric wires are concerned—but having trainsets or portions of rail networks out of service for repairs causes delays, reroutes, and cancellations, inconveniencing customers.
The current heat wave has also been extraordinary in that it has lasted nearly a week without overnight reprieves from the heat, so the amount of time the rail networks have been subject to elevated heat levels has no comparison. Previous heat waves in August 2003 and July 2019 were not as long-lasting.
Europe certainly isn’t the only global region with rail networks affected by hot weather, but its heat-related rail disruptions are unique. The US and Canada don’t have similar high-speed rail networks—most of their trains are diesel-powered. In the U.S., electric catenaries are only used in the high-speed Northeast Corridor. In other hot countries in Africa and Asia, the trains are also diesel-powered, and not the high-speed variety common in Europe.
As heat waves are anticipated to become more common and more intense, rail operators are looking for ways to “heat-proof” their networks. One option is to impose speed limits during hot weather to keep the tracks from overheating, but that would ultimately still cause network delays during heat waves. Another option is to paint the tracks white to reflect and disperse heat, a method that has already been found to be effective in the United Kingdom and Italy.
For now, all rail travelers in Europe can do is check their train schedules before leaving for the station to monitor for delays or cancellations. Travelers planning journeys throughout Europe during the hot summer months can also minimize heat-related disruptions by planning their journeys in the early morning or late evening hours when the weather is cooler, although extended heat-related delays during long heat waves can have knock-on effects across several days.
Elevated temperatures in France are forecast to last through at least the weekend, with Paris expected to reach highs of 101 F on Thursday – some 30 degrees higher than normal for June.
‘Do Not Drive’ Flood Warnings Issued for 5 States
Todd Shoemake / Shutterstock
https://www.fodors.com/news/news/severe-storms-and-heat-waves-threaten-travel-across-the-u-s-this-week
No matter where you are traveling in the U.S. this week, make sure to prepare for extreme weather.
Storms are raging across the U.S. this week. The National Weather Service (NWS) has warned that severe thunderstorms with hail, strong winds, and tornadoes will hit the central High Plains. The states of Arkansas, Oklahoma, Texas, Louisiana, and Kansas are likely to experience torrential downpours and flash floods with effects continuing for days. Amidst such severe weather conditions, the states are cautioning people not to drive on flooded roads.
Millions of people are at risk as storms threaten daily life from Nebraska to the Florida Panhandle. “The storms will likely develop by mid to late afternoon across southeast Wyoming and north Colorado, and then spread southeastward across the central High Plains through the evening,” the NWS posted on X.
NWS warned in a statement, “Torrential rainfall is occurring with these storms, and may lead to flash flooding. Do not drive your vehicle through flooded roadways.”
This comes after a tornado made landfall in Virginia earlier this week, causing localized flooding. Three tornadoes also hit Oklahoma this week, with flooding, power outages, and damage to roads and homes. On Monday, a football game in Philadelphia was paused due to rain. Severe weather also resulted in 198 flight cancellations on Tuesday at airports in New York, Philadelphia, and Washington due to poor visibility.
In Kansas, gusts of wind of over 60 miles per hour and hail are expected, so travelers are being warned to stay indoors. The Great Basin is expected to have scattered dry thunderstorms with little rain but substantial lightning. “Use caution with any potential ignition sources. Move to shelter if Lightning is occurring. Stay aware and follow instructions from emergency officials,” the National Ocean and Atmospheric Administration (NOAA) advises.
Meanwhile, the NWS has also warned of heat waves in the Midwest, the Deep South, and the Southwest. “As blistering as the daytime highs will be in many areas, record-warm morning lows will heighten the danger for those unable to seek cool shelter,” it posted on X. Three hikers recently lost their lives in the Grand Canyon National Park due to heat-related incidents, so travelers should take caution when the mercury rises.
No matter where you are traveling in the U.S. this week, make sure to prepare for the weather and sign up for updates.
What to Do In Case of Flooding
First off, prepare for plan B. If you are in the area where a warning is issued, be ready to take action. Keep a lookout for local weather warnings and alerts. If you have been ordered to leave, don’t delay it. Also, importantly, don’t visit flood-hit areas because you may impede rescue services or get into trouble yourself.
Pay attention to any road closures and safety signs, and also avoid standing water, which may contain sharp objects, chemicals, or sewage. If you’re driving and meet a flooded road, turn around. Don’t try to drive a vehicle, and definitely don’t walk/swim into it. “A mere 6 inches of fast-moving flood water can knock over an adult. It takes just 12 inches of rushing water to carry away most cars, and just 2 feet of rushing water can carry away SUVs and trucks,” the National Weather Service (NWS) warns.
What to Do During a Heatwave
Stay in the shade and avoid outdoor activities. If you are planning hikes or outdoor sports, make sure to take multiple breaks, keep hydrated, and avoid the hottest times of the day. Heat stress can cause nausea, vomiting, headaches, and muscle cramps—know the symptoms and call emergency services if you start to feel sick. The most vulnerable are people with chronic diseases, kids, the elderly, and pregnant women.
Europe is also experiencing extreme heat, so plan your vacations to factor in the weather. Locate cooling centers, spend the afternoons indoors, wear loose clothing, and drink plenty of fluids.
Marriott, Blacksand team on multi-brand Saudi Arabia deal
https://hotelsmag.com/news/marriott-blacksand-team-on-multi-brand-saudi-arabia-deal/?
Blacksand and Marriott International have signed an agreement to develop 10 hotels in Saudi Arabia over the next four years, representing more than 1,300 rooms across multiple Marriott brands.
The multi-brand deal spans Marriott’s luxury, premium, select, and extended-stay portfolios, including St. Regis Hotels & Resorts, Marriott Hotels, Autograph Collection, Moxy Hotels, Courtyard by Marriott, Residence Inn by Marriott, and Apartments by Marriott Bonvoy. The agreement establishes a long-term collaboration between the two companies on projects tied to the country’s tourism and urban development plans.
“This agreement marks a defining milestone for Blacksand and reflects the scale of our ambition,” said Omar Alabdullatif, CEO of Blacksand. “Our collaboration with Marriott International brings globally recognized brands together and a shared commitment to creating exceptional hospitality offerings in the Kingdom. An agreement of this caliber is one that supports the shaping of the future of an already ambitious nation, and we are proud to be there, setting the benchmark for quality, experience, and long-term value.”
“This landmark deal with Blacksand reflects Marriott’s continued focus on diversifying our portfolio across Saudi Arabia to deliver meaningful hospitality experiences in line with the country’s tourism priorities,” said Jerome Briet, chief development officer, Europe, Middle East & Africa, Marriott International. “From immersive resort escapes and design-led stays to vibrant social hubs and extended-stay living, we look forward to introducing a range of experiences tailored to meet the evolving needs of travelers visiting the Kingdom.”
The projects are in design planning and early construction stages, with phased openings scheduled through 2030. Properties will open in multiple cities across Saudi Arabia, with the first hotel expected to open in Riyadh. The 10 hotels are expected to generate more than 6,000 full-time roles upon completion, with at least 60% allocated to Saudi nationals.
Blacksand and Marriott said the agreement lays the foundation for future collaboration as both companies continue expanding their joint portfolio in Saudi Arabia.
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