Skift Take
If all the U.S. hotels planned in the lifestyle and soft-branded segments between 2024 and 2027 actually get built, it would mean 29% a year of pipeline growth on average. Color us doubtful.
U.S. hotel groups and developers have a red-hot interest in lifestyle hotels, soft-branded hotel collections, and independently-run boutique hotels. A new report suggests just how hot — even if actual development may not meet the loftiest goals.
Developers and hotel groups have proposed nearly 60,000 branded lifestyle and soft-branded boutique hotels to open between mid-2023 and 2027, according to an analysis by The Highland Group of CoStar's STR data. These planned hotels — if they happen — would represent 29% annualized compound growth over the next four years.
"It's highly unlikely this amount of development will come to fruition," said Kim Bardoul, partner at The Highland Group, which released its Boutique Hotels: Mid-Year 2023 report this week.
"Lifestyle" hotels are franchises that typically include quirky decor, a bar, and a loun