Too big for boutique?

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Madinat Jumeirah offers consistent individualiy.

Branded boutique hotels are set to drastically change the Middle East's hospitality landscape. Lee Jamieson asks if the major brand operators behind their development are too big for boutique?

"Boutique" is a slippery word that resists categorisation. Boutique hotel properties can be both affordable and expensive, small and large, old and new, or independent and chain-affiliated. Today, the word "boutique" perhaps more correctly refers to a niche hospitality concept - a niche that is attracting the attention of big brand operators.

The new boutique

"While the idea behind the boutique hotel is continually evolving as with all leisure properties, the essentials of the boutique concept remain," explains Emaar Hospitality Group (EHG) chief executive Marc Dardenne.

"You can always expect top-class personalised service and a smaller number of guest rooms. Big brand operators can bring in operational efficiencies but managing a boutique hotel will ultimately be based on the value differential created. This can also be achieved by small operators with the right vision, ideas and resources."

EHG, which currently operates The Montgomerie and The Arabian Ranches Golf Club, is actively considering expanding its boutique properties through its five-star brand The Address. Like many other operators in the region, it is responding to an emerging customer desire for a branded boutique experience.

"Boutique properties are increasing in popularity due to the levels of personalised service offered," continues Dardenne.

"The smaller the hotel, the easier it is to connect with the guest, establish a long-term relationship with them and offer a tailor-made package. The bigger brand operators are beginning to see how sophisticated travellers are now looking for more than just a pillow to rest their head - they want a complete experience in itself."

As the Middle East's hospitality scene continues to grow at a phenomenal rate, brand operators of all sizes will be forced to diversify their products and exploit emerging niches.

"Big brands have tried to engage the boutique traveller through several interim solutions such as developing the ‘hotel within a hotel' concept," explains Jumeirah Group vice president, brand strategy and management Thatcher Brown.

"For example, many hotel brands have expanded the traditional reach and services of the concierge through a ‘concierge floor' product to offer a more personalised service at a premium."

Beyond the Middle East, the branded boutique revolution is already in full-swing. The US has recently seen a great deal of activity with Starwood Hotels and Resorts' W Hotel, and Marriott International's unlikely alliance with Ian Schrager, the pioneer of the boutique hotel.

Interest in the branded boutique concept has emerged with impeccable timing for the Middle East's hospitality industry, which is now well-positioned to profit from this trend.

"The Middle East market has only just become sophisticated enough to support the demand for differentiated products like the boutique phenomenon," explains TRI Hospitality Consulting associate director John Podaras.

"Even then, this is only evident in selected markets like Dubai, Oman and Abu Dhabi where aspirational lifestyles are a decision factor."

Balancing brand and boutique

"Brand" and "boutique" are not incompatible terms. In the fashion world, boutiques have always been associated with designer brands and exclusivity - concepts that are very familiar to today's large hotel operators.

"It is possible to remain consistent with a brand while introducing unique and innovative benefits to a hotel," explains Dardenne.

"The idea behind a boutique hotel is to offer a distinctive experience, which is achieved through the service standards and amenities provided. A branded boutique hotel is therefore not a contradiction in itself, but a unique offering."

The development of a boutique brand requires a careful balance between brand visibility and the individuality of the experience. This can be difficult to achieve in an ever-diversifying industry and some big operators have found it difficult to capture the boutique essence in their packaged products.

"The boutique phenomenon is definitely evolving - predictably into a packaged product," explains Podaras.

"One wouldn't describe W or Park Hyatt as boutique concepts - yet this was the space they were aiming for when they launched."

Hyatt has evidently learned from its experience and has left no stone unturned in the search for a new branded boutique concept. The result was Andaz, a new brand which is currently being expanded globally. Andaz aims to deconstruct the hotel experience by breaking down the barriers between guests and employees and combine the various hotelier roles into a single host.

"Our brand delivers personal preference by putting the customer back in the driving seat," says Andaz director of operations, Jonathan Frolich.

"In a typical hotel you would have to get through the doorperson, bell attendant, check in desk and the associated paperwork before you even get a key to your room. This all puts up barriers and the administration of the check-in process takes over from the service interaction."

"So, we've gotten rid of the check in desk and the lobby and replaced it with a lounge. Our hosts are armed with mobile computer tablets and they can check you in anywhere, anytime. If you want to check in at the bar, in the lounge or on the way to your room, it can all be done."

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