Recently, Malaysian contemporary hotel
industry is experiencing an increased differentiation
of new products’ offerings due to a high level of
demands. This study aims to investigate what are the
factors attracting guests to boutique hotels, to define
how such factors fulfil guests’ special inclinations,
and finally to understand the potential of boutique
hotels as attractions in Penang Island/ Malaysia. The
study’s methods included a review of the literature
and a survey of boutique hotel consumers in Penang
Island. The findings supported those of previous
studies and may assist boutique hotels’ owners and
operators to satisfy guests’ needs more effectively.
Moreover, practical suggestions are made for
boutique hotel operators and those wishing and
willing to enter the market. Furthermore, the
outcomes of this study may help the Tourism
Ministry of Malaysia and other relevant associations
to finalize an adequate grading system for boutique
hotels, and gain substantial insight in order to market
and promote this particular segment of the
accommodation industry in Malaysia.