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, said an expert. 

 

Today’s travellers, from creatives to high-net-worth individuals, are increasingly drawn to places that feel personal and emotionally engaging.

 

Boutique hotels meet this demand by delivering human-centred experiences that prioritise intimacy, privacy, and connection, said Campbell Gray Hotels, a British hospitality company.

 

What was once a preference has now become an expectation, especially after the pandemic highlighted the need for comfort and low-contact environments, it stated. 

 

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, said the hospitality expert.

 

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 a genuine boutique city hotel has yet to be meaningfully developed. 

 

One of the biggest misconceptions about smaller hotels is the assumption that “small” equates to “minimalist”, that fewer rooms, sometimes as little as 10, mean fewer amenities. In reality, this misrepresents what boutique hospitality truly offers, said Campbell Gray, which also specialises in creating, developing, and operating unique hotels, branded residences, and restaurants.

 

"A boutique hotel may have fewer rooms, but it can still provide all the expected services, from room service and multiple, refined dining options to wellness spaces and concierge care," explained Saad Audeh, the Chairman of Campbell Gray. 

 

"The difference lies not in the availability of facilities, but in the scale and intention behind the experience. Guests can enjoy the full range of comforts without the impersonal volume. This is where the paradigm in hospitality is shifting, the smaller the setting, the more personalised and emotionally resonant the service becomes," he noted.

 

In a boutique property, the bellman remembers guests’ names, the receptionist recognises preferences, and the waiter engages with genuine familiarity, creating a sense of intimacy that large-scale hotels simply cannot replicate, noted Audeh.

 

"For property owners across the GCC, this shift presents a timely and compelling opportunity," he added. 

 

Audeh pointed out that smaller plots, underutilised villas, or midscale buildings that may not suit large-scale development can be transformed into high-value boutique assets. 

 

"These properties require less capital investment, can often be adapted from existing structures such as low-rise buildings or villas, and enable a more efficient path to market. Boutique hotels are also better suited for flexible operation, creative branding, and mixed-use lifestyle integration, allowing owners to activate spaces that combine hospitality with distinct F&B, wellness, or retail concepts," he added.

 

Campbell Gray said another big reason to go for boutique hotels is that it tends 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. 

 

Globally, the boutique hotel sector is gaining momentum, valued at $25 billion in 2023 and projected to exceed  $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.

 

"Boutique hotels globally are outperforming large chains in both revenue and guest satisfaction, a clear reflection of travellers’ growing preference for hotels that offer distinct character and emotional connection," said Simon Venison, Development and Operations Director at Campbell Gray. 

 

"The industry is steadily shifting towards experience-first, emotionally intelligent travel, and this is precisely where Campbell Gray excels," he noted.

 

"Campbell Gray isn’t just another hospitality brand; we’re developers, operators, and hands-on partners from day one," said Venison. "We work side by side with owners to shape projects that are both creatively ambitious and commercially grounded," he added.-TradeArabia News Service