Everyone Is Drawn to Boutique Hotels. But What Do They Really Mean?

We often think we can spot a boutique hotel at first glance: it's characterized by its unique charm, individuality, and allure, typically being small and independently operated. The term emerged in the 1980s, popularized by hoteliers like Anouska Hempel, Steve Rubell, and Ian Schrager, who used it to describe their smaller, distinctly designed, non-chain establishments. However, with an increasing number of properties adopting the label, its meaning has become somewhat ambiguous in recent years.

"The label 'boutique' aims to convey stylish design, cozy atmospheres, personalized service, and occasionally more affordable nightly rates," states Vikram Seshadri, a luxury travel consultant based in San Francisco with Global Travel Collection. "However, some have misappropriated the concept to justify poor service, high nightly rates, and outdated interiors."

So, what truly characterizes this now-common travel term? We consulted experts for clarity and asked them for their top boutique hotel recommendations.

What defines a boutique hotel?

Most specialists agree that a boutique hotel should express personality rather than resemble a cookie-cutter establishment. This uniqueness is often linked to the specific location or environment, creating a "sense of place, personalized service . . . an overall feeling that, when you stay at this hotel, you are essentially part of the community and neighborhood," explains Seshadri. "It's a way for guests to feel connected, even if only for a short time."

In essence, a boutique hotel should immerse you in the local culture rather than make you feel like an outsider. Homegrown hoteliers with fewer rooms often have the connections and resources to provide more enriching experiences, says Kenan Simmons, SVP Americas of Small Luxury Hotels of the World, a collection of over 550 independently owned properties. "We seek luxury accommodations that possess a unique character and offer exceptional experiences to guests," he explains. "We like to think of ourselves as 'anti-chain, anti-sameness.' It’s less about defining what is boutique and more about capturing the hotel's true essence."

What can you anticipate from a boutique hotel?

Just because a hotel is independently owned and has fewer rooms doesn’t mean it should skimp on service or amenities. "Many establishments label themselves as 'boutique,' but often it merely indicates that they lack full-service capabilities," remarks Cory Hagopian, SVP of sales and partnerships at luxury travel company Virtuoso. "This undermines the true concept of a boutique hotel, which should embody uniqueness, charm, and, of course, size."

However, boutique hotels may not always cater to every traveler's needs. The choice of accommodation can depend on the purpose of a trip: large five-star hotels affiliated with familiar brands can provide a certain consistency across locations, along with amenities like multiple onsite dining options and expansive spas.

Independent smaller hotels come with their own perks. "To me, the truest boutique hotels offer the most authentic experience of the local culture and life," says Seshadri. "I recommend them whenever possible, but I understand they aren't for everyone. I save boutique hotels for clients who value local experiences and believe that surprises can enhance their journeys."

Size is important—but only to a degree

Not every small hotel qualifies as boutique, but all boutique hotels are indeed small. The industry typically defines them as having fewer than 100 rooms. Yet, the classification focuses less on the number of rooms and more on the level of detail and the opportunities for privacy and tranquility at establishments where management isn't stretched too thin. "It's not just about the room count," Simmons points out, confirming that SLH properties average 56 rooms. "It’s about the ambiance: Does it feel cozy? Do they provide secluded, discreet options with an emphasis on guest comfort?"

Having fewer guests and rooms increases the likelihood of crafting memorable moments and addressing individual preferences. However, for organizations like Virtuoso and SLH, as well as advisors like Seshadri, each hotel must be assessed on its own merits to ensure it meets the boutique criteria and honors the term appropriately.

At SLH, like other genuine boutique hotel choices, character is paramount. According to Simmons, all SLH hotels must meet a high standard of service and comfort while showcasing meticulous attention to detail, yet no two properties are the same—and that's a significant part of their appeal. They can vary greatly in aesthetics and provide diverse experiences, whether in historic mansions like the Francis in Portland, Maine, woodland treehouses like the Green O in Montana, or alpine chalets such as the Crans Ambassador in Crans Montana, Switzerland.

To define a boutique hotel, Hagopian poses several key questions: “Is the service tailored or does it feel more standardized? Are there personal touches around the property (like artwork from the owner's collection)? Do I feel a connection to the establishment?”

The finest boutique hotels in the world

Experts have their own favorite boutique hotels that showcase their unique preferences. Hagopian particularly loves Passalacqua on Lake Como, featured among Dinogo’s Best New Hotels 2023. “It epitomizes personalized service: dine wherever and whatever you desire,” she shares. “The entire hotel feels like your personal residence. The owner, Valentina de Santis, is always available to suggest daily activities or share the building's history. Most importantly, the entire team is empowered to make decisions to ensure your stay is flawless.”

For Simmons, a highlight is Rio Perdido Hotel & Thermal River in Bagaces, Costa Rica, recognized in SLH’s Considerate Collection for its exceptional sustainability initiatives. “Thirty forest bungalows are nestled within a dwarf forest, spanning a stunning 1,500-acre reserve,” he explains. “This wellness retreat is remarkable for its mile-long stretch of ‘lost river’ fed by natural hot springs—and the staff can arrange a range of thermal healing experiences. It’s unique, intimate offerings like this that create a truly boutique experience.”

As a travel advisor, Seshardi has uncovered boutique treasures in many popular cities and resort areas. In Paris, he recommends Pavillon de la Reine on the Right Bank and Relais Christine on the Left Bank for clients seeking a cozier experience. In London, he suggests the vibrant and eclectic Ham Yard Hotel in Soho. In New York, he appreciates the bright and spacious Crosby Street Hotel and the new French pied-à-terre-style Hôtel Barrière Fouquet’s. While in Rome, his favorites include the 14-suite mansion hotel Portrait Roma and the recently renovated Hotel de la Ville. “All of these places offer a genuine sense of place,” he notes, “making you feel truly connected to the community.”