At Providence’s The Beatrice, travelers aren’t just booking a room. They’re booking a vibe. That’s according to Jennifer Curtin, the general manager of the downtown boutique hotel in a four-story building that used to be a bank.
Curtin says guests who stay at The Beatrice want more than a place to sleep; they want a place that feels local and will be memorable.
Apparently, there are many others who feel the same way.
Boutique hotels have been gaining in popularity for years, but that momentum has picked up speed since the COVID-19 pandemic, when more travelers sought personalized accommodations that put more emphasis on unique experiences.
And that trend shows no signs of slowing. A report published in 2025 by the Florida-based commercial real estate advisory Leisure Investment Properties Group showed that boutique hotels continue to outperform traditional hotels in key metrics such as revenue per available room and average daily rate.
The report also cites hotel industry projections that show the boutique sector – hotels that are small and have a distinct character and sense of place – is expected to grow by more than $11 billion in a five-year period ending in 2029.
Curtin is not surprised.
“When someone travels, they really want to feel like they’re experiencing the location as if they were a local,” Curtin said. “A beautiful hotel alone isn’t enough; people want an experience they’ll remember.”
Boutique hotels appear to have thrived in a niche between the hotel chains and short-term home rental platforms such as Airbnb, offering uniqueness but maintaining professional hospitality standards.
Experience-focused hotels have been around in downtown Providence for years. The 80-room Hotel Providence opened on Matthewson Street in 2005. A block away, The Dean, with 52 rooms, opened in 2014. Earlier this year, it was rebranded as Neptune, owned by New York-based Ash Hotels, a boutique hotel group.
Sensing opportunity, bigger brands have stepped in with bigger takes on the boutique in recent years.
The Graduate Providence – formerly the Biltmore Hotel – has restyled itself under the Graduate Hotels brand to give a boutique vibe despite having 18 floors and nearly 300 rooms. Graduate Hotels is part of Hilton Worldwide Holdings Inc.
And Aloft Hotels – a lifestyle hotel brand owned by Marriott International Inc. – opened the 175-room Aloft Providence Downtown in 2021.
That’s the same year that Providence-based Paolino Properties LLC opened the 47-room Beatrice, named after the mother of managing partner Joseph R. Paolino Jr.
The Beatrice has leaned into the boutique feel. With the small number of rooms, Curtin says her team can track guest preferences, down to desired pillow types, and deliver tailored experiences.
“That personalization is driving loyalty and repeat visits here,” she said.
Farouk Rajab, president of the Rhode Island Hospitality Association, says the success of local boutique hotels illustrates the broader industrywide trend.
And this growing demand for a boutique experience is giving operators premium pricing power, he notes. “When the experience feels authentic, guests are willing to pay a premium,” he said.
Industry numbers bear that out. A 2025 Boutique Hotel Report from hospitality consulting firm The Highland Group found boutique hotels pulled higher daily rates and more revenue per room than the broader U.S. hotel market in 2024, underlining their premium pricing appeal.
While major chains are trying to replicate the boutique feel with lifestyle-focused brands, independent properties still have the edge, Rajab says.
Boutique hotels aren’t successful just because of aesthetics, he says. They succeed because they don’t have the burden of heavy brand infrastructure such as marketing, and corporate reservations and management systems.
Meanwhile, the success of the boutique sector is translating into investor confidence, Rajab says.
Deal activity in boutique and lifestyle hotels has climbed 55% in recent years, far outpacing sluggish, single-digit growth in branded hotel deals, according to a 2025 Boutique & Lifestyle Lodging Association analysis presented in June.
“Properties that offer authentic experiences … can withstand market swings better than traditional hotels,” Rajab said. “And in a market that can be unpredictable, properties that command higher rates and maintain steady demand become very attractive.”
Indeed, rising wages and higher labor costs per occupied room are forcing operators nationwide to rethink staffing and labor models, according to a 2025 Hotel Labor Costs & Trends report from HotelData.com.
Often, Rajab says, the success in the boutique space is inseparable from place.
In Newport, long-established properties such as Castle Hill Inn and The Chanler at Cliff Walk reinforce the appeal, Rajab says, by pairing historic settings with a strong sense of place that travelers can’t replicate elsewhere.
The emphasis on place plays out in Providence as well. At The Beatrice, Curtin says the hotel partners with local businesses and cultural institutions to craft curated experiences.
Holiday packages include tickets to “The Nutcracker” at Ballet Rhode Island, a dinner at the hotel’s Bellini restaurant, while summer collaborations feature WaterFire Providence lightings and nearby eateries.
“Every detail, from local performances to neighborhood dining, is designed to make guests feel like they’re part of the city, not just visitors passing through,” Curtin said.
She says some guests have returned year after year for this level of personalized service and local charm.
“I’m confident this segment will continue to thrive,” Curtin said. “People are increasingly prioritizing experiences over just a room. As the industry grows, we’ll keep finding new ways to connect guests with Rhode Island’s culture and community.”
