This analysis is focused on companies or businesses or SaaS platforms built for the luxury and boutique hospitality sector. The platform will serve as the personalization middleware between hotels’ property management systems (PMS) and their guests, enabling automated pre-arrival planning, preference capture, and in-stay personalization through a unified digital guest passport.
How many luxury boutique hotels in the world that could utilize a PMS Saas platform?
Defining Your Target Audience
Luxury boutique hotels are characterized by their unique design and commitment to creating a one-of-a-kind experience, often inspired by the local culture and history. They typically offer a range of amenities and services that enhance the guest experience, distinguishing them from standard hotels.
Specifically, the target audience or the targeted users are all hospitality owners globally who are keen to create a unique guest experience by using or adopting hotel PMS technology solutions to boost their revenue and at the same time give their guest the best service and confidence.
Before we deep dive into the TAM, SAM and SOM analysis of the above market, we will first look at the current market trends, actual market size and projected value of the related broader market.
Global Hospitality Industry Market Size (Current and Projected Value)
Overall hospitality market
The global hospitality market size was valued at $4,119.34 billion in 2023 and is projected to expand at a compound annual growth rate (CAGR) of xx%, reaching a value of $xx billion by 2030.
The hospitality industry is in the business of professional services, covering hotels, motels, resorts, restaurants, cafes, theme parks, tour companies, and much more, and falls into the broader service industry.
Hotel segment market
Concurrently, the hotel segment is anticipated to grow from $820.67 Billion in 2023 to $xx Billion by 2030, at a CAGR of xx% during the forecast period.
Luxury boutique hotel market
Overall, the Global Boutique Hotel Market size was $106.53 billion in 2024 and is projected to reach $xx billion this 2025, $xx billion in 2026, expanding to $xx billion by 2034. The industry is expected to exhibit a growth rate of x% during the forecast period (2025–2034). With nearly xx% of travelers preferring boutique hotels for unique design, and xx% choosing eco-friendly options, the market reflects growing demand for experiential hospitality and niche stays worldwide.
Regionally, Europe leads with xx% market share, followed by North America with xx%, Asia-Pacific at xx%, and Middle East & Africa contributing 10%.
Accordingly, the Luxury boutique hotels segment account for nearly xx% of total market demand, while mid-range boutique hotels represent about xx% share.
Year-by-year market size of the global boutique hotel at a CAGR of xx%, values in [ ] account for the luxury boutique segment from a xx% market share
2024: $106.53 billion; [$40.48 billion]
2025: $xx billion; [$xx billion]
2026: $xx billion; [$xx billion]
…
2034: $xx billion; [$xx billion]
Statistics and data for the number of boutique hotels:
North America
Statistics and data are provided in the report.
Average revenue per boutique hotel
= $xx million
Estimated total number of boutique hotels in North America
= xx
Europe
Estimated number of boutique hotels in Europe
Global
Estimated number of boutique hotels globally
= Global market size / average revenue per boutique hotel
Total Addressable Market (TAM) and its potential revenue
Criteria:
The Total Addressable Market (TAM) encompasses all global luxury and ultra-luxury boutique hotels that operate independently or within small ownership groups and are not affiliated with major international chains. These properties typically emphasize distinctive design, experiential service, and localized guest engagement.
Findings:
In order to analyze data, we curate different statistics of known databases for luxury boutique hotels.
Small Luxury Hotels of the World (SLH)
- Total Number of Hotels
Distribution in percentage: xx% Europe, x% North America, about xx% ROW
Growth rate based on number of additions;
The Leading Hotels of the World (LHW)
The Leading Hotels of the World (LHW) is a prestigious luxury marketing organization representing over 400 independent hotels across more than 80 countries, known for its commitment to exceptional service and unique experiences.
Currently have xx hotels listed globally; x hotels in North America; x hotels found in Europe
Distribution in percentage
Design Hotels
Mr & Mrs Smith
The Great Small Hotels
Calculations and estimations
From the above, the average distribution will be as per below.
The above listings of luxury boutique hotels from different prestigious organizations does not actually define the exact number of these hotels and there is no any other database that actually has the complete lists. Thus, using the market revenue market share for each region, we will assume that the percentage share will parallel also the share in terms of number.
TAM Summary:
| Region | Number of boutique hotels | Number of Luxury to Ultra-luxury boutique hotels |
|---|---|---|
| Global | xx | xx |
| Europe (incl. The UK) | xx | xx |
| North America | xx | xx |
TAM potential revenue:
- The potential revenue based on the TAM target market depends fully on the company’s cost and pricing. Here, we will use a benchmark cost to determine the potential total revenue.
The average cost of hotel PMS SaaS can vary significantly based on the features and size of the hotel. According to Hotel Tech Report, the most recommended solution for a boutique hotel is Cloudbeds. Thus, we will use their pricing to calculate values.
Cloudbeds offers a flexible pricing structure for its software, with costs starting at $99 per month for up to 9 rooms and 1 user. Additional costs apply for more rooms and users. The pricing is based on a per-property, per-month model, with costs ranging from $100 to $600 per month for smaller properties with up to 10 rooms. For larger properties with 100 rooms, the monthly cost can go up to $1,000. Enterprises with multiple properties or global operations can expect to pay custom pricing based on their specific needs. Implementation costs for Cloudbeds can vary depending on the size and complexity of the property, with small properties starting from $500 and larger properties upwards of $5,000. Customization costs are also available for businesses looking to tailor the software to their specific needs, with prices starting from $1,000 for small properties and increasing based on the level of customization required.
Potential revenues assuming full penetration of the TAM target market globally
Potential revenues assuming full penetration of the TAM target market in EU and NA
Serviceable Available Market (SAM) and its potential revenue
Criteria:
The Serviceable Available Market (SAM) represents the portion of the TAM consisting of luxury and ultra-luxury boutique hotels that operate on, or are migrating to, modern cloud-based PMS platforms compatible with our platform—specifically Oracle Opera Cloud and Mews. These properties combine the boutique profile defined above with technology infrastructures that enable real-time integration and automation. The SAM should quantify, across global and regional markets, how many qualifying boutique hotels currently use or plan to adopt Opera Cloud or Mews, and analyze the growth trajectory of cloud PMS adoption within this segment.
Findings, statistics and data: All data provided in the report.
Calculations and analysis:
From the above statistics and data, we could be able to estimate a number of how many luxury boutique hotels are adopting and are seriously considering the use of PMS solutions.
Estimated number of luxury boutique hotels using PMS and upgrading them
- Global
- Europe
- North America
SAM Summary:
| Region | Number of Luxury to Ultra-luxury boutique hotels | Number of Luxury to Ultra-luxury boutique hotels that are using PMS and have plans to upgrade |
|---|---|---|
| Global | xx | xx |
| Europe (incl. The UK) | xx | xx |
| North America | xx | xx |
SAM potential revenue:
- Using the same average spending as above;
Potential revenues assuming full penetration of the SAM target market
Serviceable Obtainable Market (SOM) and its potential revenue
For a company that is offering a B2B2C SaaS platform built for the luxury and boutique hospitality sector, it has a potential to reach a total revenue of $xx million assuming that the company gets 100% market penetration of the available market in Europe and North America.
Obtainable market revenue will be fully dependent on the company’s marketing initiatives and business strategies on how to reach out to these potential clients.
SOM potential revenue:
- Using the same average spending as above;
Potential revenues assuming full penetration of the SOM target market
TAM, SAM and SOM Summary
Global
Europe (provided in the report)
North America (provided in the report)
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Why Luxury Boutique Hotels Has Future
Today’s discerning travelers seek experiences that are tailored to their individual preferences and desires. Boutique luxury hotels are leading the way in personalization, leveraging technology and data to create bespoke experiences for each guest. A study by Skift Research found that 79% of luxury travelers value personalized experiences over material goods. This shift in consumer behavior is driving boutique hotels to invest heavily in technologies and training that enable them to deliver highly customized services.
The future of hotels looks promising as more travelers seek out unique experiences and personalized service. One of the main reasons for the growing popularity of boutique hotels is their ability to offer personalized service and attention to detail which is difficult to find in larger chain hotels. Of those who prefer boutique hotel accommodations, an overwhelming majority (95%) of travelers say personalized offers or recommendations based on their interests would make them more likely to book a stay at an independent hotel, according to TakeUp‘s “The Voice of the Boutique Travel Guest 2025” report.
Additionally, according to a new survey commissioned by Mews, the industry-leading hospitality cloud, nearly 7 in 10 travelers (68%) now say they’ll stay loyal to hotels that deliver standout, personalized experiences – leaving traditional, points-based rewards behind. This shift in loyalty is unmistakable: among Gen Z, personalization reigns over points (83%) and 71% of high-income earners also prefer experiences tailored to them vs. loyalty points.
From Fine Homes And Living magazine, quoted, “In the age of social media, design has become more important than ever for boutique luxury hotels. These properties are pushing the boundaries of hotel design, creating unique, visually striking spaces that serve as the perfect backdrop for Instagram-worthy moments. From statement art pieces to innovative room layouts, boutique hotels are investing in design elements that set them apart and create memorable experiences for guests. Many are collaborating with renowned architects and designers to create spaces that tell a story and reflect the local culture and environment.”
According to a survey by Small Luxury Hotels of the World, 39% of luxury travelers choose hotels based on how “Instagrammable” they are. This trend is driving boutique hotels to focus on creating visually appealing spaces that encourage social media sharing and word-of-mouth marketing.
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