Tag Archives: ADR

According to Campbell Gray boutique hotels are the missing pieces in the hospitality sector in the GCC. Globally, the boutique hotel sector is gaining momentum, valued at US $25 billion in 2023 and projected to exceed US $40.3 billion by 2030, with a compound annual growth rate of 7.1%, according to Grand View Research. Leisure travellers made up more than 70% of boutique hotel guests in 2023, underlining the continued demand for personalised, experience-led stays which could the GCC has made remarkable strides in tourism, establishing itself as a global hub for luxury and innovation. Yet, while the region is known for large-scale resorts and international hotel brands, there is a growing opportunity to introduce more individual, character-driven hospitality in the Gulf. Today’s travellers, from creatives to high-net-worth individuals, are increasingly drawn to places that feel personal and emotionally engaging. Boutique hotels tend to achieve higher Average Daily Rates (ADR) thanks to their uniqueness and personal appeal, and are especially well suited to emerging districts where large-scale development may be less feasible. Boutique hotels meet this demand by delivering human-centred experiences that prioritise intimacy, privacy, and connection. What was once a preference has now become an expectation, especially after the pandemic highlighted the need for comfort and low-contact environments. With fewer rooms, limited shared spaces, and a more considered scale, boutique properties offer a level of calm and personalisation that larger hotels often struggle to match. While most hospitality development in the region is led by major groups focused on building ever larger and more opulent hotels, the boutique segment remains relatively unexplored. A few examples are emerging in destinations such as Hatta, Al Ula and Ras Al Khaimah, but the concept of …

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