Can boutique hotels in India balance authenticity and profit?

As well-heeled travellers seek more from their holiday, environmental sustainability, local design, and unique cultural experiences are becoming front and centre for boutique hotels in India

Perhaps the one of the most exciting parts of planning a holiday is choosing where to stay—scrolling through photos, reading reviews, and deciding which place deserves your precious downtime (and your Instagram feed). But today's discerning travellers, armed with disposable income and well-stamped passports, want more than just a room with a compelling view—they’re chasing stories. “Travellers today want a narrative behind the hotel they’re staying at versus 1200-thread-count sheets,” notes Guneet Singh, co-founder of the recently opened Mumbai hotel, The Kin, along with sibling Imrun Sethi.  

At The Kin, customisation is the guiding principle.  “We have a concept store instead of a reception in our lobby—why not have guests immersed in a stylish retail experience as they arrive?” share the duo, who themselves prefer  boutique hotels for the charm and personality when they travel. “Even larger chains of hotels, bound by brand guidelines, try to tweak each experience to feel memorable and different. That’s what well-seasoned travellers will remember, making them come back to your property.”

True to their philosophy, Singh and Sethi designed The Kin around memorable moments: Guests can browse curated artwork for sale, unwind with vinyl records at the music nook tucked beneath the stairs, or ride a vintage metal-and-glass elevator past hanging lamps. Moreover, they celebrate local businesses like the Dadar Flower Market in the vicinity, with fresh flowers not only adorning their premises but available for sale as well. It’s this intentionality—the  authentic embrace of local culture—that is redefining luxury travel for India's sophisticated, urban traveller. 

Heritage boutique hotels in India: Where history meets hospitality

Some boutique hotels in India have naturally progressed over generations in their effort to preserve history. Take Danish Din’s family for instance, who have hosted people in Ladakh since 1974, when Din’s late grandfather first opened a bed-and-breakfast (B&B). Din’s grandmother cooked meals, his father started helping the family out as a guide, and his uncle, Gulam Mustafa, pursued fine arts and studied local Ladakhi arts, deeply influencing the interiors and ethos of their property, The Grand Dragon Ladakh, today. The hotel features rich brocade furnishings and carved ceilings with traditional teak wood cornices known as‘Shing Tsak’—also seen at Leh’s historic Tsemo palace tower. Indigenous juniper and poplar timber is used to make woodwork characterised by detailed carvings and motifs. “The architecture incorporates the Rabsal tradition of Ladakh in the window treatments and balconies. This is a way for us to conserve the architectural heritage of Ladakh,” says Din, who knows that they will never build a 10-storeyed building there. “Besides, The Grand Dragon only occupies 15 per cent  of the total area, the rest is empty for guests to soak up nature,” he adds. 

Meanwhile, in Kalimpong, the Mayfair Himalayan Spa Resort—built from  local stones and wood by British author David MacDonald, who had worked as an official in Sikkim in the 20th-century—began as the region’s first homestay. It later served as the focal point for expeditions to Mount Everest from India until 1952, and was the gateway for yak wool trade to Lhasa via the Jalep La pass. “One of the biggest challenges was to renovate the crumbling building while retaining local architectural imprints. Budgets were still an issue as there was no feasibility for investment in Kalimpong,” says Ranjeeta Mohapatra, the resort manager. 

Similarly, at The Kumaon in Uttarakhand, founder Raghav Priyadarshi took inspiration from Sri Lankan architect Geoffrey Manning Bawa’s tropical modernism to build a structure that would seamlessly merge with the surrounding natural environment. “The architecture and aesthetics of classic Asian resorts stems from a style developed by Bawa,” explains  Priyadarshi, who ensured at least one designer who had formerly trained under Bawa worked to develop the designs. The Kumaon’s 10 rooms utilise chiselled local stones, mud plaster walls, and slate roofs—all elements that slowly disappear as towns get modernised. Additionally, they’ve incorporated British-era iron bridges used to cross gorges and culverts in the hills. Local pine wood is used for doors and frames, authentically capturing the local built heritage. 

Why sustainability is at the heart of India's boutique hotel movement

A primary concern when establishing boutique hotels is how they impact their surroundings. “You want a wider audience to experience the gorgeousness of a place, but then there’s the development that piggybacks on you without being sensitive to locals. This, in turn, leads to degradation of local authenticity and a lot of trash,” says Priyadarshi. He notes that The Kumaon’s slightly remote location helps prevent large-scale, cookie-cutter hotels from encroaching. Though over the last 10 years, he’s observed a lot more cafes nearby—not just chai shops—run by locals, crop up.  At The Kumaon, sustainability also means local employment;  of their 37 employees, 34 are Kumaoni, including the chef, who creates authentic local dishes like gahat ki dal, instead of dal makhani, and pahadi chicken instead of butter chicken.

Similarly, at Amaya in Kasauli, Himachal Pradesh, sustainability has guided every decision since  founder Deepak Gupta witnessed deforestation in the state over a decade ago. Gupta took 25 acres of land—because they didn’t want the encroaching development to ruin the forest around them—and created low-density accommodation on a small patch of land, rejuvenating the rest. “We didn’t want to displace nature but co-exist with it,” explains Gupta, who saw the nearby Darwa village become denser, with thoughtless construction aimed solely at profit. 

Amaya’s sustainability practices also include recycling water, waste management systems, and eco-sensitive structures that leave no carbon footprint if the space had to discontinue operations. Gupta drew inspiration from sixth-century homes in Cambodia and Myanmar, reclaimed by nature over time. Lime, blended with sand, mud, and brick powder,  instead of cement, was used, requiring an artisan based in Switzerland to train the local construction crew. The property also repurposed abandoned agricultural terraces for guest rooms and revived some for organic cultivation, supplying their farm-to-table fine dining restaurant Naar, helmed by chef Prateek Sadhu. 

“Amaya doesn’t echo of luxury like an old haveli in Rajasthan would with opulent rooms, but embraces the minimalism akin to the Japanese Ryokan,” says Gupta, emphasising that the property’s appeal lies in providing well-travelled visitors an authentic experience. Amaya’s allure is further enriched by its proximity to Darwa village nearby. 

Boutique hotels in India are refining luxury through simplicity 

“Guests want to feel like they are discovering something special, though some still seek the more globally recognised perception of luxury experiences that aren't as deeply rooted in the local culture,” notes Devidyuti Ghosh, manager at  Mulberry Shades Bengaluru, a resort in Karnataka. According to Ghosh, there’s  also a rising interest in  experiential corporate getaways. 

Anant and Udit Kumar, founders of Brij Hotels in Jawai, Rajasthan, acknowledge that their boutique properties may not appeal to travellers seeking  conventional urban luxury and  entertainment. “But we stay relevant by continuously evolving; introducing craft workshops, for example. Boutique hotels in India, especially in culturally rich places like Rajasthan, focus on heritage preservation through architecture, culinary storytelling with farm-to-table as well as regional recipes, and local craft experiences,” say the duo. At Brij Pola, guests immerse themselves in surroundings featuring dramatic granite formations, handwoven charpais, Rabari textiles, curated meals hosted by local Rabari women, a nature walk to identify medicinal plants, and storytelling around a bonfire. Yet, they caution against excessive local-themed decor—like gold plating or neon lighting—that can diminish authenticity. 

For travellers inclined towards minimalism, Minimalist Boutique Hotels (Delhi, Varanasi, Shimla, and Goa), have adopted the Japandi design philosophy—a blend of Japanese and Scandinavian styles. “Japan’s hospitality ethos—rooted in efficiency, aesthetics, and warm yet unobtrusive service—resonates with most modern Gen Z and millennial travellers,” says Gautam Munjal, founder and CEO of Minimalist Hotels.

India’s boutique hotel market’s profitability and real-world challenges 

A 2024 research paper titled ‘A Boutique Hotel Market Report 2024-2030’ states that the global boutique hotel industry is expected to reach US$40.26 billion by 2030, exhibiting a CAGR of 7.1 per cent during the forecast period of 2024 to 2030. Even in India, boutique hospitality can be highly profitable, especially given the lower operational costs when compared to large-scale, 300-room-large properties. “There are guests who complain that the accommodation should be priced at US$60, not US$1200. They are used to an idea of luxury that is exploding with things,” says Gupta, emphasising how true luxury for him lies in careful attention to detail—like Italian mattresses that ensure  a good night’s sleep. 

However, smaller properties such as The Kumaon face challenges in achieving operational profitability, given their higher service or staff-to-guest ratio. “This is why a lot of boutique properties don’t survive for too long. Plus, there are [logistical] hurdles like no road leading to the property. We were unable to find a contractor with a stone mason who also had the skillset and finesse,” says Priyadarshi, who ultimately had to hire contractors from neighbouring Almora, Haldwani, and Nainital. The unexpected lack of infrastructure, including water, electricity, internet and network coverage, increased their cost to 2.5 times the original budget. To offset these challenges, they’ve introduced revenue-generating activities like yoga—experiences that most international guests expect. “Plus, it’s additional revenue,” he adds, besides making visitors aware about the region, which is also how The Kumaon gets its name. Similarly , Amaya’s guests often maintain relationships long after their visits, seeking advice on growing ingredients back home and carrying back produce—meaningful souvenirs that are far more valuable than typical purchases from luxurious holidays abroad.

Also Read: How far do hotels go to offer Instagram-worthy luxury experiences?

Also Read: Are Indian travellers outgrowing five-star hotels?

Also Read: Why wellness is taking precedence over indulgence while making travel plans