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Introduction

April 2019 CBRE Research 2© CBRE (AUS) Pty Ltd |

What is a boutique hotel?

Boutique hotels are popular

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Danny Lee

Senior Research Manager,

Head of Hotels, Retirement and Healthcare Research

1https://www.forbes.com/sites/lealane/2016/01/15/are-millennial-travel-trends-shifting-in-2016-youll-be-surprised

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2. https://www.speckdesign.com/news/2018/an-inside-look-at-millennials-unique-hotel-needs

Source: TRA, CBRE Research

Figure 1: Share of visitors in 2018 by purpose and age group

0%

10%

20%

30%

40%

50%

60%

International

visitors

Domestic visitors International

visitors

Domestic visitors International

visitors

Domestic visitors

Total Visitors Holidaying Business Trips

20-39 40-59 60-79

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Big chains providing an experience

April 2019 CBRE Research 4© CBRE (AUS) Pty Ltd |

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Brand Operator Brand Operator

Moxy Marriott Hotel SLS Hotels Accor

W Hotel Marriott Hotel Delano Accor

Autograph Collection Marriott Hotel Mondrian Accor

Hotel Jen Shangri-La Hyde Accor

SO Sofitel Accor Jo & Joe Accor

Mama Shelter Accor Tru Hotel Hilton

25hours Hotels Accor Canopy Hilton

The House of Originals Accor Andaz Hyatt

Source: STR**, CBRE Americas Research

Figure 2: U.S. Boutique hotels as a share of total pipeline (2019-2023)

* Big hotel chains are defined as a company that owns or manages/operates a number of hotels under the same brand (or a collection of brands) in different locations.

** Note: Republication or other re-use of this data without the express written permission of STR is strictly prohibited

3. IBISWorld Hotels report 2018

Table 1: Boutique hotels launched by big operators

0%

5%

10%

15%

20%

25%

Big Operators Independents Total Boutique

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April 2019 CBRE Research 5© CBRE (AUS) Pty Ltd |

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Source: Cordell, CBRE Research

Figure 3: Number of rooms and percentage of stock as boutique hotels over the next five years

4. CBRE Hotels: Trends and Expectations for Boutique and Lifestyle Hotels, September 2018 Edition; Trends in the Hotel Indust ry USA Edition 2018

0%

2%

4%

6%

8%

10%

12%

0

500

1,000

1,500

2,000

2,500

Melbourne City Sydney City Perth City Canberra Brisbane City

% of sto

ck

Num

ber of room

s

Number of rooms % of stock

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Source: STR*, CBRE Hotels’ America Research. Note: The basket for boutique refers to legacy brands

Figure 4: U.S. Hotel key performance indicators - annual change from 2014 to 2018

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2%

4%

6%

8%

10%

12%

All U.S. Hotels Boutique Hotels All U.S. Hotels Boutique Hotels All U.S. Hotels Boutique Hotels

Occupancy change ADR change RevPAR change

The advantage of big hotel operators

5. Resonance Consultancy. The firm’s new 2018 Future of Millennial Travel Report: A survey of America’s fastest growing touri sm demographic

* Note: Republication or other re-use of this data without the express written permission of STR is strictly prohibited

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Rising competition will drive more innovation among hotels

Conclusion: Innovate or lose out on market share

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Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy,

we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information

is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

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