How Boutique Hotels Use Collective Purchasing Power to Stay Competitive

Written by:

Steve Marcinuk

Date:

07 Nov 2025

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The independent hotel sector faces mounting pressure as major chains continue consolidating and operational costs rise across the industry. For boutique properties that want to maintain their unique character while competing effectively, a new model is emerging that harnesses collective purchasing power without sacrificing independence.

Jennifer Barnwell has observed this challenge from multiple angles throughout her hospitality career. After starting at Cornell University’s School of Hotel Administration and working in various ownership companies in New York, she joined Pebblebrook Hotel Trust in 2010 as their first asset manager. Her experience managing diverse portfolios—spanning luxury independents and major brand properties—revealed a persistent gap in the market.

The Scale Problem for Independent Hotels

The challenge facing independent boutique hotels is clear: they need the same operational tools and vendor relationships as major chains but lack the negotiating leverage that comes with size. While branded properties benefit from corporate-negotiated contracts and standardized systems, independents must manage dozens of vendor relationships on their own.

“In the independent boutique space, there’s obviously a set list of things that you need to operate. But then every choice has so many options within that choice, and they stack upon each other,” Barnwell explains. A typical property needs a property management system, central reservation system, revenue management system, and point-of-sale systems for restaurants, with multiple options in each category.

This abundance of choice can overwhelm operators who lack the resources to evaluate every option thoroughly. At the same time, their negotiating position with vendors is weak compared to major chains placing orders for hundreds of properties.

From Internal Innovation to Market Solution

A potential solution emerged from Barnwell’s experience at Pebblebrook during a period of rapid growth. When the REIT acquired LaSalle Hotel Properties, doubling in size overnight, the expanded scale created new opportunities.

“The team had a great idea to create this little group within asset management where everything they were focused on was value creation, cost efficiencies, making sure we’re really on top of what’s new and interesting out there in terms of products, services, and technology,” Barnwell recalls.

The results were significant: material cost savings across the portfolio and new internal platforms that hadn’t been used before. “It was all really due to scale. Just because Pebblebrook had gotten so much bigger, vendors were reaching out to us a lot more than they used to, and we had the leverage to negotiate more than we did in the past.”

Other operators and owners began asking about these initiatives, sparking the idea to create Curator Hotel & Resort Collection —a platform specifically designed to help independent boutique properties access similar benefits through collective purchasing power.

A Different Approach to Hotel Affiliation

Curator Hotel & Resort Collection operates differently from traditional franchise or management company relationships. Rather than imposing brand standards or operational requirements, it functions as a membership organization focused on cost savings and operational efficiency.

“We don’t have any brand standards, honestly. There’s nothing rigid. There’s no checkbox requirements, except that you need to be a true independent boutique hotel,” Barnwell notes. “At the end of the day, it’s an ROI endeavor.”

The platform maintains over 100 master service agreements with vendors covering essential hotel operations: property management systems, reservation systems, revenue management, credit card processing, parking operations, real estate tax consulting, and purchasing agreements for items such as linens and food supplies.

The process involves detailed RFP procedures to identify best-in-class providers, followed by negotiations on pricing and terms. Member hotels can then choose which agreements make sense for their operations, with information provided on potential savings and implementation requirements.

Expanding Beyond Cost Savings

In late 2023, Curator Hotel & Resort Collection added a consumer-facing marketing component to complement its operational focus. The platform now includes a visual website showcasing member properties, orchestrated email campaigns, social media presence, and digital marketing investments designed to drive bookings directly to member hotel websites.

This dual approach addresses both sides of the profitability equation: reducing operational costs while generating incremental revenue through targeted marketing efforts.

Technology Innovation in Boutique Hotels

The technology landscape presents both opportunities and challenges for independent properties. While major brands dictate technology choices from corporate offices, independents must evaluate numerous options across every category.

Curator Hotel & Resort Collection is piloting several emerging technologies, including AI voice agents for handling routine phone inquiries, workflow automation for accounting and lead response, and robotics for housekeeping operations during off-peak hours.

“It makes perfect sense that there should be some kind of AI solution when someone calls down and just wants their car from valet, or wants to know what floor the fitness center is on, or wants a late checkout,” Barnwell explains. “That’s the majority of calls—simple things that should be completely doable from that perspective.”

The goal is not to replace human interaction but to free staff for higher-value guest experience activities. “It’s about efficiency in terms of taking pressure off our existing team members, so they can really dive into and focus completely on the guest experience.”

Market Dynamics and Future Outlook

The current operating environment presents significant challenges for all hotel operators. Revenue growth remains muted while costs continue rising, putting pressure on margins across the industry.

“There’s so much pressure on margins because costs keep going up. We all see that and feel that from a consumer perspective, and it’s obviously happening throughout businesses too,” Barnwell observes.

This environment makes Curator Hotel & Resort Collection’s value proposition more relevant. By helping properties reduce operational costs while generating incremental revenue through marketing programs, the platform addresses both sides of the margin pressure equation.

The Case for Independence

Despite consolidation pressures, Barnwell sees growing opportunities for well-positioned independent properties. As major brand portfolios become increasingly difficult to differentiate, boutique hotels can leverage their unique character and personalized service.

“The big brands just keep getting bigger and bigger. I can’t even differentiate between this list of brands—what is this versus that? That’s the continued opportunity for independents and boutiques. We will continue to be completely differentiated from the big brand commodity situation that’s out there.”

The key is ensuring independent properties have access to the operational tools and efficiencies needed to compete effectively while maintaining their distinctive character. For boutique hotel owners and operators, platforms like Curator Hotel & Resort Collection represent a path to achieving scale benefits without sacrificing the independence that defines their market position.

As the hospitality industry continues evolving, the success of independent boutique hotels will increasingly depend on their ability to balance operational efficiency with authentic guest experiences—a challenge that collective purchasing power and shared resources can help address.

For many independent hotel owners, the ability to access top-tier technology, negotiate better vendor contracts, and participate in collective marketing campaigns may determine long-term viability. By joining together in platforms that preserve independence while delivering the practical benefits of scale, boutique hotels can maintain their unique appeal while strengthening their business fundamentals.

Looking ahead, Barnwell believes that the most successful independent hotels will be those that embrace operational innovation without losing sight of the guest experience. As travelers continue to seek out properties with character and individuality, the demand for authentic boutique hotels is likely to grow. The challenge for operators will be to deliver this value efficiently, leveraging collective resources where possible to remain competitive in an industry shaped by rising costs and consolidation.

In this context, collective purchasing power is more than a cost-saving tactic—it is a strategy for survival and differentiation in a rapidly changing market. By working together, boutique hotels can ensure that their voices remain strong, their operations resilient, and their guests’ experiences memorable.