The boutique hotel chain is using a best-cost provider strategy to gain competitive advantage. This strategy combines elements of both differentiation and low-cost approaches by offering upscale rooms and superior customer service (differentiation) at value prices (low cost). It aims to provide customers with more value for their money than competitors by blending quality and affordability

. This approach allows the hotel to stand out by delivering a higher-quality experience than typical budget options while still maintaining attractive pricing, appealing to guests who seek luxury without paying premium prices. This hybrid strategy helps the hotel compete effectively in a crowded market by balancing cost efficiency with distinctive service and amenities