Posh boutique hotels pay attention to the details

By Marni Andrews

Boutique hotels are not new, though some promoters in the industry would have consumers think they are. The concept is actually centuries old and began in Europe, according to Dr. Gabor Forgacs of the Ted Rogers School of Hospitality and Tourism Management with Ryerson University in Toronto, though such hotels were not known by the term “boutique.” They were, however, small, independently owned and managed, and they offered exceptional service. In North America, on the other hand, economies of scale and the price of prime real estate encouraged the growth of very large mega-hotels with capacity in excess of 500 rooms or even 1,000 rooms during the second half of the 20th century.

Many credit Ian Schrager, a savvy and streetwise Manhattan club promoter without any hotel experience, with the introduction of the “boutique hotel” when he opened Morgans in 1984. It was also the beginning of the focus on the segment as a marketable commodity. His subsequent properties (from the Royalton to the Paramount to the Delano.) attracted much attention for their willingness to eschew the mass-marketed standards that had been established by most of the chains to that point.

“Some people think [Schrager] invented something. As far as I am concerned he took an existing concept, applied it in North America, adjusted it somewhat, but most importantly, very successfully merchandized it,” explains Forgacs.

“It is very fashionable at the moment to talk about ‘Boutique Hotels.’ Some people call them ‘Lifestyle Hotels’ or even ‘Design Hotels,’” notes Lucie Carbonneau, general manager, Les Industries JSP Inc. “Anyway, it is quite en vogue to announce some sort of differentiation in contrast to the legendary homogeneity of the big hotel chains. But even among the big chains the trend exists and some of the new developments are using that edge to promote their offers.”

Whatever people want to call it, as the North American version of the concept evolves, luxury is becoming accentuated. According to Jolanta Lukus of Royal Design Inc., boutiques are posher than ever with the most noticeable trend being that attention to detail is at an all-time high. Lukus is seeing a lot of rich, bold colours for decor, often with a neutral backdrop to make them pop. Chandeliers add tradition and romance to a space or, in a contemporary design scheme, more interest and depth to the design, says Lukus.

“Light is always a good way to set a certain mood in a space. When the chandelier is on a dimmer, it can really enhance the feel of the suite,” she says.  

How boutiques survive

“Business is so bad now that what a lot of companies and individual hotels are doing is showing added value or added gratitude,” says Bobby Bowers of Smith Travel Research. Industry insiders have dubbed the practice “stealth gratitude.” Consumers who are the beneficiaries are claiming that they’re moved, impressed and feel more loyalty towards hotels that are getting innovative and thoughtful with premiums.

In an article on added gratitude on the CNN website, a couple who wanted to celebrate their 50th anniversary by staying in the same room at the Peabody Hotel in Memphis were delighted when the hotel rolled back their room rate from $179 to $8, what they’d paid in 1959. The hotel had been renovated so the actual room no longer existed but the couple was thrilled with the experience.

Brenda Homick, director, North America for the worldwide premium Relais & Chateaux brand, says that “smaller, family-run properties, as many of ours are, tend to have the capacity to be a bit more agile in responding to market conditions.” While Relais & Chateaux does not discount, they are offering packages at some locations. The most popular, offered at 34 of the 480 properties, is the Romantic Escapes package, which features four nights for the price of three plus a “romantic welcome.”

Relais & Chateaux has long practiced the art of guest gratitude. As an example, Homick herself found a bottle of lavender on her pillow at turndown after she’d told the GM she had sleep problems.

What Relais & Chateaux, the Peabody and other boutique properties have discovered is that the impeccable execution of what ResortSuite’s CEO Frank Pitsikalis calls “customer intimacy” creates loyal guests who will more likely remain loyal during an economic downturn and not be swayed easily by discount pricing. Pitsikalis, whose company offers a turnkey software management system for boutique hotels, notes that loyal guests (as well as the reverse) are talking to other guests more and more with the prevalence of social media. This can be great (or not so great) for the hotels.

“One of the true joys of running an independent boutique hotel is that you’re nimble,” agrees Lise Magee, director of public relations for The Listel Hotel in Vancouver, whose unique calling card is that it is filled with distinct art that also serves as the property’s major marketing point for art-themed packages and promotions. “Decisions and directions can be changed on a moment’s notice. This makes surviving tough economic times a little bit easier.”

Magee has experimented with social and viral marketing for recent promotions to the Listel’s existing network of guests, staff and suppliers. She has been frank about the economic situation and offered respondents “first dibs” on some “amazing” rates, packages and incentives. In return, they were happy to spread the word throughout their own personal social networks.

The Sir Christopher Wren House Hotel & Spa in Windsor, England is located next to Windsor Castle. General manager Mathew Griffin is overseeing an extensive renovation of the hotel over the next 12 to 16 months that will add 35 new rooms, as well as refurbish 45 existing rooms. Three spa treatment rooms are being added to an existing three as well as other improvements. While the project was planned well in advance of the recession, Griffin notes that the slowdown will actually allow him to manage room allocation much better for the 70 per cent of the property that will be kept operating.

Spa-inspired bathrooms

A spa-inspired bathroom with top of the line showers and tubs is key to a good [boutique] retreat, says Lukus of Royal Design Inc. She adds that plush white towels, crystal bath accents and elegant lighting flanking the mirror above the sink further enhance the space.

“More properties are choosing upscale products with clean minimalistic styling in the washrooms, which is one of those areas that helps create a memorable experience,” says Peter Ashton, commercial business manager, Masco Canada Limited. “[We’re seeing] jetted showers with large overhead rain can showerheads, vessel sinks, and marble and glass countertops with lots of metal finishing and accents.”

Marietta Corporation sells personal care amenities to the industry, including several lines preferred by boutique hotels, according to brand manager Cynthia Guy. She said that Aveda is probably the most socially and environmentally conscious brand on the market. FACE Stockholm is popular with boutique hotels as well and is known for its chic minimalist packaging. Judith Jackson Spa and Sonoma Soap Company both feature all-natural fragrances, says Guy.

“Boutique hotels want to reflect their chosen aesthetic in most of their choices — to convey their image and establish the ambiance of the property,” she says.

“Natural-based spa amenities in recyclable packaging are the trend,” says John Hunter, president, Hunter Amenities International, which offers a large number of branded amenity collections for mid- to upper-scale boutique hotels.

Hunter thinks that boutique hotels are struggling as much as the large chains with issues such as cross border traffic and less income for leisure travel, but he says they have a slight advantage because they tend to employ fewer staff.

Donna Church, manager of marketing and communications at Kohler Canada, says that sustainability has become a way of life “that’s here to stay” though its effects are still rippling through the hotel industry. Beyond installing efficient plumbing products, hotels are also encouraging visitors to actively do their part and she says that consumers now expect environmentally-friendly options. Hotels are responding with high-efficiency toilets, water-conserving showerheads and faucet aerators.

The use of natural materials such as glass, cast iron and stone, and earthy colours contribute to the theme of sustainability, which explains their popularity.

“On the point of décor, notable trends for the boutique hotel bathroom include the presence of furniture, spacious showers and details that contribute to the creation of a spa-like experience,” explains Church.

Designer Michael Kaye of Skyline International Development is noticing more emphasis on “comfort combined with minimalism and bold colours.” He, too, notes the spa experience as a key design influence that is reflected in clean lines for furniture and the use of products that promote relaxation and customized comfort.

Paul Weber, president of Swisssol Inc. Creative Body Care, which specializes in eco-friendly products, says he’s noticing boutique operators taking advantage of lower occupancy rates to do complete renovations of guestrooms. He’s also seeing boutique hotels choosing guest amenity lines that are eco-friendly, biodegradable and with less packaging waste.

Specialization a draw

The tourism and hotel industries are becoming more and more selective, says Jarek Cholewa, president of HFG International, a hospitality and wellness consulting firm. European estimates indicate that within the next 10 years specialized hotels will have a market share from 25 to 30 per cent. He thinks that within the next few years there will be a noticeable demand for specialization. Some examples of this would be hotels with a central attraction theme such as a health/medical spa, sports, art and design, cuisine, or nature; hotels that focus on a specific group such as children, hockey players, business networking or retirees; and hotels that offer three- to four-day mini retreats.

Geoffrey Tracy, who is responsible for product development and design for Hotel Fitness Club, says that boutique hotels demand a marriage of functionality and aesthetics. Guests want the highest in quality and the latest in design. Hotel Fitness Club, which offers fitness room design and feasibility among other services, is doing a lot of customization for boutique hotels. This may be a custom paint colour or upholstery or even custom equipment branding to match the hotel brand, says Tracy.

Differentiation is key at boutique hotels like the new Sparkling Hill Resort in Vernon, BC.

The new 152-room, $50-million Sparkling Hill Resort and Wellness Hotel that will open in Vernon, BC in spring 2010 is looking to distinguish with a few points of unique specialization. According to Hans-Peter Mayr, president and CEO, the philosophy of the resort is to help guests achieve whole body wellness. The hotel overlooking Lake Okanagan is being chiseled from bedrock and will feature North America’s first cold sauna (-110oC and reputed to help arthritis, psoriasis, diabetes and other conditions). The hotel is owned by one of the family members of Swarovski Crystal in Austria, and will be the first in North America to incorporate Swarovski crystals into its design.

One of the bedrooms at the new Sparkling Hill Resort and Wellness hotel in Vernon, BC

Pitsikalis of ResortSuite notes that customer intimacy does not have to be lost with a boutique hotel experience despite the ongoing fight for customer retention that has resulted in additional amenities being added all the time.

“Creative and top-notch concierge services [can] create unique and exceptional guest experiences without losing that customer intimacy.”