Patrick Saada - Boutique hotels vs. large hotel investments

Patrick Saada highlights boutique hotels as the future of hospitality. 

In today’s competitive hospitality market, the debate between investing in large hotels versus a collection of boutique properties is more relevant than ever. For Mr. Patrick Saada, a seasoned international advisor and a leading voice in Europe’s boutique hospitality scene, the answer is clear: a diversified portfolio of smaller, well-positioned boutique hotels delivers stronger, more resilient returns than a single large-scale property.

With decades of global experience and his ongoing strategic involvement with Bohopo, Patrick Saada has witnessed firsthand how micro-locational diversification, operational flexibility, and market segmentation turn boutique hotel investments into a smarter, lower-risk alternative for forward-thinking investors.

Mr. Patrick Saada emphasizes the concept of micro-locational diversification as a foundation for smart hospitality investment. By distributing capital across several boutique hotels within a single city—rather than concentrating it in one large asset—investors significantly reduce their exposure to operational and market risks.

A hypothetical 100-room hotel in central Brussels may appear attractive, yet it comes with inherent vulnerabilities:

• Only one appearance on booking platforms such as Booking.com, limiting online visibility.
• High occupancy thresholds (60–70 rooms sold) required before room rates can be increased.
• Fixed to a single market segment, reducing flexibility.
• Renovations must impact the entire 100-room asset at once, creating operational challenges.
• Risk and return are concentrated in one property.

According to Patrick Saada, this model not only ties investors to a single operating strategy but also leaves them highly exposed to market fluctuations.

Now imagine the same 100-room investment spread across five boutique hotels, each with 20 rooms, in the same city:

• Five separate listings on Booking.com, multiplying online exposure.
• The ability to raise rates after selling just 10 rooms (50% occupancy).
• Each hotel can target different market segments—luxury, mid-range, budget, or lifestyle.
• Renovations can be phased per asset, minimizing operational disruption.
• Risk is diversified across multiple properties and guest profiles.

As Patrick Saada explains, this structure enables investors to operate with greater flexibility, achieve profitability earlier, and adapt to shifting market dynamics far more effectively.

The boutique hotel model isn’t just a preference of independent investors—it has become a strategic focus for global hotel groups. Major players like Hilton and Marriott have recognized the growing demand for smaller, design-led properties, launching their own boutique and micro-hotel brands to stay competitive.

Patrick Saada points out that this trend creates additional opportunities for boutique hotel investors. A well-curated portfolio of boutique properties may, over time, become highly attractive to larger hotel groups seeking to expand their brand portfolios through acquisition.

This article was written in cooperation with Mr. Patrick Saada