Skift Take
As legacy hotel groups continue to build and buy boutique hotel brands, they're commoditizing the entire sector.
The circle is now complete. InterContinental Hotels Group (IHG), the world’s largest hospitality brand, just acquired Kimpton Hotels, the world’s first boutique hotel brand.
But what does a boutique hotel even mean anymore?
Starwood Hotels was the first large chain to jump into the boutique/design/lifestyle segment on a large scale with its successful W Hotels flag, and since then many of the global hotel groups have followed suit through either acquisition or new development.
Hyatt launched Andaz, Hilton has Canopy, and Marriott invested big into the market with Autograph Collection, Moxy, EDITION and AC Hotels. Internationally, Melia’s ME brand, Carlson Rezidor’s Quorvus and Radisson Red initiatives, and Shangri-La’s new Hotel Jen are just a few more examples.
The factors spurring this trend are manifold, beginning with rapidly changing demand from a younger, more well-educated and well-traveled consumer who actively avoids any type of generic travel experience. Only two decades ago, hotel brands marketed themselves based on product consistency, especially attractive to consumers traveling abroad in a rapidly globalizing marketplace with so many new emerging destinations.
Since then, brand consistency has shifted from a positive business driver to a toxic mark of shame, quickly.
Today, digital communications have helped remove much of the fear of the unknown, obviating the need for brand exp
