Boutique hotel sector 'key growth area'

SME investors may be interested to learn that the boutique hotel sector is the fastest-growing hotel segment in London.

In fact, the forecast from HVS suggests that it is set to double in size between 2011 and 2013, largely due to its resilience in the face of the current economic climate.

Rebranding to attract a smaller group of guests with a higher room rate appears to have been a winning formula. Indeed, a recent Hotel Supplier Survey from hotel-industry.co.uk revealed that independent and boutique hotels are driving significant profitability across the supply chain.

The figures confirmed that 69 per cent of independent hotel suppliers identified profitability, as did 32 per cent of boutique hotel suppliers.

Tim Etchells, SME London managing director, told Hotel Industry hat the sector has “acquired huge importance without the past five years”. As a result his business has set up a trade show to help bring owners, operators and key decision makers together with suppliers, designers and service providers in order to help improve business prospects and make 2013 the year in which the sector will mature and broaden.