Lebanon's boutique hotel sector shows high potential for future growth

06 September 2010

BEIRUT: The boutique hotel sector in Lebanon is showing signs of slow growth, with the small number of participants in this niche market performing particularly well and displaying signs of optimism for future potential in the market as a whole.

A boutique hotel, according to the head of Lebanon’s Hotel Syndicate Pierre Achkar, is often quite small and usually consists of between 40 to 60 rooms.

“A boutique hotel is one that offers something special to its guests, its concept and look depending on where the hotel is located. Boutique hotels are characterized by their different room designs and sizes to guarantee that guests will never have the same experience twice,” Achkar said.

Achkar noted how boutique hotels offered the highest quality in all areas, including room service, food, amenities and multi-lingual staff.

“Inevitably therefore, these hotels often come with a very high-price tag,” he said.

Achkar informed The Daily Star that there was a high demand for rooms in boutique hotels mainly because Lebanon is still characterized by individual tourism rather than group-based tourism.

“Nevertheless, despite this high demand for rooms in boutique hotels, the majority of tourists to Lebanon are still preferring to choose the luxury-chain hotels because these are still the most well known. Since boutique hotels are often small and not overly exposed, many tourists still do not know about them,” Achkar said.

Achkar noted that although there was undoubtedly potential for the growth of the boutique hotel sector in Lebanon, a ceiling existed on individual-based tourism, citing the need for more 4-star hotels to accommodate for groups.

“Boutique hotels that are not excessively priced can attract wealthy groups from Europe and the Middle East. These [4-star] hotels are springing up outside Beirut since occupancy rates in the capital are usually above 75 percent on average during the summer months so are no longer able to accommodate large groups.”

Le Gray hotel, situated on the edge of Martyrs Square in Downtown Beirut, is one of Beirut’s latest boutique hotels. Opened in 2009, this trendy boutique hotel boasts 87 spacious and stylishly designed rooms and suites, as well as a restaurant, two lounges, a café and a glitzy rooftop bar.

The impeccable service and chic design – complemented by a particularly extensive art collection – characterize the Campbell Gray Hotels and have helped it gain instant popularity among Beirut’s fashion-conscious local population, as well as with tourists who have aided it in securing full occupancy since its opening last year.

According to Gordon Campbell Gray, owner of Le Gray, the concept of a boutique hotel has become a little distorted in recent years.

“The implication though is that it is small and stands out [from the rest] of the crowd; it implies individuality. The key to a boutique hotel is that every hotel looks totally different; each hotel is like a little masterpiece,” Campbell Gray said.

Commenting on the status of the boutique hotel sector in Lebanon and its future growth, Campbell Gray noted how the concept was still quite new one in the Middle East region.

“We’ve been totally packed since the opening. People crave individuality here; they want something fresh and original. Of course there will always be the people who are only comfortable with a brand name but the world is changing … people are seeking individuality.”

In terms of future demand for occupancy in boutique hotels, Campbell Gray noted that demand was far greater than supply in Beirut.

“Despite that, Beirut should be careful not to overdevelop, it’s still a small city.”

Nevertheless, Campbell Gray noted that the boutique hotel sector in Lebanon was still underdeveloped, so for many of the higher-end tourists that Lebanon accommodates, they have no choice but the luxury-chain hotels.

“For many incoming tourists to Lebanon, staying in luxury-chain hotels is what they’ve always done. It’s certainly a leap for people not to go to a luxury-chain hotel in this region in general. That’s why it’s so important to give people the choice between the larger-chain hotels and boutique hotels,” Campbell Gray said.

He also noted that the boutique hotel sector in Lebanon certainly has great potential, owing to the common held view that Lebanon was a particularly fashion-aware destination.

“Whereas a boutique hotel is one shot with passion, brands are far more predictable. In my opinion, the success of Le Gray has come from the fact that the guests are very excited by the passion we have infused into the design and attention to detail we’ve put in, as well as our extensive art collection. Lebanese people are extremely stylish and chic; they understand good design and have great taste. They also value good food, which is why we’ve put such a focus on the restaurants,” Campbell Gray said.

Addressing markets that are targeted for boutique hotels, Campbell Gray stressed that individual and vacation travelers continued to form the bulk of the demand at his hotel, as opposed to business travelers.

“Le Gray has highlighted the potential for leisure in Beirut. It’s seen as an especially sexy hotel; we have guests coming from Paris and London for the weekend just based on reviews they’ve read of the hotel. Guests as well as hoteliers are entrepreneurial – they want to try something new,” he said.

The importance of an efficient and well trained staff base was highlighted by Campbell Gray as a reason for the swiftly earned reputation of his boutique hotel.

“I think another factor contributing to the success of this hotel is the wonderful staff we have – there is a very strong service ethic. We put a big emphasis on respecting, training and inspiring the team.”

But Campbell Gray was keen to praise the warmth of the Lebanese spirit as a major factor for the success of his hotel.

“A lot of the credit goes to the character of the Lebanese people; their friendliness and welcoming nature really shine through to this wonderful personalized service. And from the side of the Lebanese guests we have, they are so complimentary that this spurs us on to keep aiming higher.”

Le Vendome Hotel, located on the Ain al-Mreisseh waterfront, is one of Beirut’s most well established boutique hotels. Aligned to the Intercontinental chain since 1996, this elegant French-style hotel hosts 73 opulently designed rooms and suites and two restaurants.

According to Jennifer el-Khoury, public relations and communications senior executive at the hotel, the term boutique hotel has been used “more and more over the last decade to describe hotels that offer and intimate and memorable experience for the guest.”

Khoury emphasized three factors that were quite specific to boutique hotels: size, service and individuality.

Size and service are seen to complement one another within the concept of a boutique hotel. Since boutique hotels are often smaller than hotels attached to larger chain hotels, with fewer rooms, a larger emphasis can be placed on offering “exceptional levels of service tailored to meet the individual needs of their guests,” she said.

For instance, Khoury cited the 24-hour butler service, a tailored chauffeur and special packages including a Bentley car as ways to meet the exceptional customer demands at Le Vendome.

In terms of individuality, Khoury highlighted how many boutique hotels have a specific theme, dependent on which part of the world the hotel is located. Furthermore, bedrooms in boutique hotels are “unique, with a different look and feel to every room.”

Commenting on the number of boutique hotels in Lebanon, Khoury referred to the three mains ones in Beirut – Le Vendome, Le Gray and Albergo Hotel. Nonetheless, despite this relatively small figure, Khoury noted that many boutique hotels would be built in the coming years.

“The reason for the projected growth is that the majority of high-end travelers lean toward personalized services rather than large standardized hotels,” she said, adding that “ they feel more pampered and more at home, and especially more secure.”

Indeed, according to Khoury, there is no difference in prices between a boutique hotel and a luxury hotel; both are aligned in terms of their price and services since both tap into the luxury market.

But due to the more-personalized nature of the overall experience of boutique hotels, this may help serve the expansion of this sector in the future.

Pertaining to plans for establishing more boutique hotels around Greater Beirut, Khoury noted that within the next two years, two boutique hotels were scheduled to open in Beirut’s Downtown area and another in Raouche.

Copyright The Daily Star 2010.