November 22, 2019
The performance of Boutique and Lifestyle hotels is expected to experience a slowdown in 2019. On average, the annual RevPAR change for properties in this segment is forecast to drop from 2.5% in 2018 to 0.9% in 2019, a decline of 160 basis points. By comparison, CBRE’s RevPAR forecast for all U.S. hotels is projected to decrease by 90 basis points. The pace of RevPAR growth is forecast to decline in six of the seven sub-segments.

While the pace of RevPAR growth is decelerating, five of the seven segments will enjoy increases in RevPAR during 2019. The greatest gains are anticipated in the Legacy Brands – Lower Priced category (3.0). Unfortunately for hotels in the Boutique/Lifestyle – Lower-Priced sub-segment, their RevPAR is expected to decline by 3.2 percent.

Note: As the Boutique and Lifestyle hotel industry evolves, the Boutique Lifestyle Leadership Association (BLLA), in conjunction with CBRE, has updated its segmentation of this growing sector. The changes reflect the emergence of new brands, as well as changes in the ownership of existing brands. In 2019, BLLA and CBRE will use seven sub-segments to analyze the performance of Boutique and Lifestyle hotels. In our quarterly forecast reports we present the representative brands and affiliations within each sub-segment.

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