Boutique properties and convention hotels carved their own recovery path. When stacked up against their comparative set, STR’s Karrie Keen found there were some differences.

Convention hotels. Boutique properties. Both have been debated, especially during the downturn, on their performance when compared to their traditional counterparts. STR’s Karrie Keen discussed the viability of niche segments at the 6th annual Hotel Data Conference hosted by STR and Hotel News Now.

During a presentation titled “Are niche segments really niches,” Keen, STR’s senior client account manager of destinations, explored performance among boutique properties and convention hotels and what their future might hold.

Following are five key takeaways on niche segments’ performance.

1. Boutique occupancy higher than pre-recession levels

Prior to the 2009 United States’ recession, boutique occupancy in 2007 sat at around 69.9%. During the downturn, occupancy dipped to 61.3% and has since grown to 75.2%, according to year-to-date June data compiled by STR, parent company of Hotel News Now.

When compared to U.S. luxury, upper-upscale and upscale properties, boutique hotels have a higher occupancy premium historically, Keen said. For example, prior to the recession, average occupancy for upper-tier hotels was 68.7%. During the downturn, occupancy dropped to 60.7% and has since rebounded to 70.6%, which is also higher than pre-recession levels, according to STR.

2. Boutique rates have not rebounded

“The dramatic drop in 2009 of average daily rates makes for a tough recovery for boutiques,” Keen said.

Boutique ADR dropped 19.1% in 2009 versus 11.7% for U.S. luxury, upper-upscale and upscale classes, she said. Before the downturn, ADR for boutiques was at $226.97. During the downturn, ADR dropped to $177.94 and has since increased to $216.63, about $10 off from pre-recession levels, Keen said.

Looking at U.S. luxury, upper-upscale and upscale hotels, ADR before the downturn was at $159.66 and dropped to $137.48 during the downturn. ADR for the three classes has since recovered to slightly above pre-recession levels at $160.36, according to the data.

3. Healthy growth forecast for boutiques, convention hotels

When it comes to boutique hotels, ADR is expected to drive revenue-per-available-room growth for the rest of 2014 and 2015, Keen said.

Boutique hotels are forecast to have a 1% increase in occupancy, 4.3% growth in ADR and a 5.3% increase in RevPAR, according to STR’s forecast. In 2015, boutiques are expected to see a 0.5% dip in occupancy but 6.3% growth in ADR and a 5.8% increase in RevPAR.

“Convention hotels will see high ADR growth in 2015,” Keen said.

For 2014, convention hotels are forecast to notch a 1.7% increase in occupancy, 4.4% growth in ADR and a 6.2% increase in RevPAR. Looking ahead, 2015 occupancy is expected to increase 0.2%; ADR is forecast to grow 5.8% and RevPAR 6%, according to STR.

4. Convention hotel occupancy showing strength

Despite the fact that convention properties are not seeing the occupancy premium they were prior to the recession, recent trends show strength for convention occupancy, Keen said.

“Year to date, we’re seeing that the convention centers are growing their occupancy at a higher rate than the industry,” Keen said.

According to year-to-date June data, convention hotels show a 3.4% increase in occupancy, while U.S. luxury, upper-upscale and upscale properties show a 2.5% increase.

5. Lack of group business affecting RevPAR

On an absolute RevPAR basis, convention hotels have a slightly lower ADR than their comparative sets (U.S. luxury, upper-upscale and upscale hotels), Keen said. Year-to-date June, convention hotel ADR was at $111.98, while its comparative set was at $113.16.

However, the U.S. is seeing some pick-up in the group market, Keen said.

“It looks good for convention hotels if the group trend continues,” she said.

Pre-recession ADR for convention hotels was at $112.54, and U.S. luxury, upper-upscale and upscale hotels had an ADR of $107.64. Overall, convention hotels’ counterparts recovered more quickly, according to STR data.