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It is very difficult to describe a boutique hotel. It is a trend that has expanded rapidly at the beginning of this century. An increasing number of guests preferred a more personal and lavish type of accommodation with a high level service in a smaller setting than the big hotels. It reflects the lifestyle of the urban elite, mainly upper class younger generation, wedding couples, honeymoons, well to do pensioners and corporate elite. Size, stylish design, eye for detail, intimacy, a personal touch, perfection, exclusivity, top standard quality meals, such as fine ‘wine and dine’ characterize boutique hotels. It’s a niche in the high-end market. It cannot be compared with the luxurious resort- type of accommodation. The number of boutique hotels in Sri Lanka has increased significantly in the last years.