Creating Inroads Into Untapped Country

The early pioneers of India’s boutique hospitality space—a segment which makes up 10 to 12% of the industry, have made inroads into new markets, acing challenges posed by secluded locations and scarce access to basic infrastructure and talent.

- Deepali Nandwani

Big, branded luxury hotel brands face a new challenge from boutique hotels. Luxury travellers are looking at experientials that go beyond cookie-cutter ones.”

These words by Filip Boyen, CEO of Small Luxury Hotels (SLH) of the World, a leading hospitality brand affiliation company that represents the best boutique hotels in the world, is a telling statement on how far evolved the luxury boutique space is. SLH is looking at tying up with luxury boutique properties in India to explore the market.

According to available data from KMPG, India has over 1,500 premium boutique hotels, of which about 100 are absolute luxury. In terms of market share, they control about 10 to 12% of the luxury end of the market.

While pretty much every other hotel likes to call itself ‘boutique’, not everyone can lay claim to this very exclusive club. As Manu Rishi Guptha, CEO, Niraamaya Retreats told Hotelier India in an interview, “Boutique isn’t just about being small and throwing together a few ‘experiences’. It is an attitude towards hospitality that is unhurried and has a human face to it. ”

Boutique hotels across the world follow a certain theme—it can be art, architecture or design, or a theme referencing the location. “In India, the boutique space has come to be defined by small hotels without any USP,” says Syed Aliullah, ED to Chairman, Le Sutra Hotels Pvt Ltd, which has just opened the Andhra Art and Craft Hotel in Vizag. However, he sees a huge potential for 40 to 60 room properties that pay well in terms of ADRs. “But hotels will have to differentiate themselves by creating their own USP, either of design, location or relevance.”

So, what exactly constitutes a boutique luxury hotel? What goes into running it? We asked a few of India’s best-known boutique hoteliers and this is what they told us.

Creating new markets