Boutique hotels are a term that is in fashion now. But what exactly is it? Is it the small size, or is it the facilities, or the location? It is a combination all of these factors, and many more. In 1984, the concept of a boutique hotel was first introduced in america by steve rubell (and ian schrager) who opened their morgans hotel in new york. Slowly, it spread to other cities as well as countries.
Boutique hotels serve the same functions or offer the same products to their residents, guests, customers, and patrons as regular hotels, but they are very different from regular hotels in many aspects. They are unique because of these differences and can generate equal or higher per-room revenue. If a hotel has between 3 and 150 rooms, it could be considered a Boutique Product.
Some in the industry believe that a property shouldn't have more than 100 rooms. However, with large international chains entering this market, the size factor has been greatly reduced. We now see boutique-oriented chains such as the starwood, kempinski and four seasons hotels, le meridian and hilton. These are in addition to regional chains such as the oberoi, dusit and banyan tree, and the ista and park groups in india.