Managing and marketing boutique hotels present a different set of challenges from those involving a more traditional property.

However, boutique owners can capitalize on the unique qualities their properties offer guests and help grow their businesses. For instance, many sophisticated travelers choose to stay in boutique hotels for their charm, historical value, one-of-a-kind architectural design and a new experience from traditional franchised hotels, which make them hot destinations. The key to marketing a successful boutique property is determining and identifying what makes it stand out from its competitors and what customers are seeking.

Hoteliers that are considering operating a boutique property should do so only after they are fully aware of the unique market into which they are delving. Travelers who choose boutique hotels for their lodging tend to be savvy, well educated individuals looking for the unique experience that a large franchise or chain cannot offer. Hotel owners can easily turn to one of the most commonly used and easily accessible tools for market research: the Internet.

Because the Internet is rapidly taking the place of 1-800 numbers as the preferred method for making hotel reservations, owners can look up information about the frequency at which rooms are booked online, the going price for rooms in specific markets, discounts hotels are offering guests and hotels that get a high volume of online traffic. In addition, the Internet is a good tool to use to research competitors' Web sites and examine how other boutique hotels are marketing themselves.

When looking to invest in a boutique property, consider the following:

• Read the real estate transactions relevant to the hotel industry that are published in the local newspapers because they can provide some insight into property values in specific markets as well as turnover rates for potential competitors.
• Invest in a boutique property in a geographic area that is experiencing significant growth and currently has strong hotel occupancies
• Steer clear of markets where property values are diminishing and hotel occupancies are low.

Once a hotel owner has a boutique property up and running, it is important to remember that top-notch customer service is what makes or breaks most hotels.

Travelers booking reservations at boutique hotels are looking for the personalized and intimate service that is not always found at high-volume properties. For many frequent travelers, a hotel serves as a home away from home. Therefore, it is essential to have a solid, well-trained staff in place. They are the backbone of any hotel. However in the United States, good help is often hard to find. The service industry is a very transient one. In some instances, annual turnover can be as high as 150 percent. This can make recruiting extremely difficult for hotel managers and owners. In addition, it is often more challenging to lure applicants to a boutique hotel with little or no name recognition than a well-known franchise property.

The trick is to not only find qualified individuals, but those that will welcome and treat the hotel as their very own. Fortunately, boutique hotel owners and operators have one thing going for them that their franchise cousins do not and that is size – or lack thereof. Because boutiques are smaller, managers have the opportunity to forge closer ties with their employees and ensure they get the proper training. They are also more able to offer feedback on a one-on-one basis. The happier employees are, the better service guests will receive and the more likely they are to keep coming back. And that is really the name of the game. In addition, boutique hotel operators also have the unique opportunity to grow personal relationships with their customers by organizing cocktail parties, greeting them upon arrival and departure and keeping in touch with them year round through direct mail pieces.

While marketing and managing a boutique hotel can present a unique set of challenges, it can also offer the opportunity for creativity and hands-on management. Hoteliers have the chance to put their personal stamp on a property and witness firsthand the fruits of their labor.

Richard Millard is chairman and CEO of Tecton Hospitality, a Miami-based owner and operator of nationally recognized hotel franchises, independent properties and boutique and luxury properties in the United States and Caribbean. For more information about Tecton Hospitality, call (305) 577-8484 or visit the company's Web site at www.tectonhospitality.com.