Lifestyle hotels are changing the way we think about travel. Instead of focusing solely on rooms, they create vibrant public spaces where travelers and locals can connect. This shift emphasizes unique experiences over standard amenities.
The Global Hotel Investment Outlook 2025 report shows how deeply rooted lifestyle hotels have become in modern hospitality. Recent acquisitions, like Hyatt’s purchase of Standard International and Marriott’s acquisition of CitizenM, highlight the sector’s appeal to both brands and investors.
The trend began gaining traction in Asia Pacific around 2008, a year that saw more lifestyle brands enter the market than in the previous two decades combined. Notable introductions included W Hotels and Aloft, laying the groundwork for a booming hospitality movement that continues to flourish. As we look forward, how will this lifestyle hotel revolution reshape the regional hospitality landscape?
Key Insights
- The number of lifestyle hotel rooms is expected to quadruple by 2024 compared to 2014, with growth anticipated to reach 34% by 2027.
- Southeast Asia currently has three times the number of lifestyle hotel rooms compared to Australia and New Zealand, though the latter shows rapid growth.
- Most lifestyle hotels are in the upscale segment, but there’s a promising rise in upper midscale options.
- Ten new lifestyle brands are set to enter Asia Pacific by 2027, with international brands dominating over 80% of the market.
- Lifestyle hotels in the region enjoy a price premium of 10-11% and generate 30% higher food and beverage revenue per room than traditional hotels.
Lifestyle hotels have emerged as a dominant force in hospitality, especially in Asia Pacific, with their numbers rapidly increasing. Since 2014, the sector has added nearly 65,000 new rooms, driven by changing consumer preferences for experiences rather than just amenities. This growth is expected to continue, with a projected increase between 6-9% of all new hotel supply from 2025 to 2027.
Interestingly, despite the upswing in Greater China, it was Southeast Asia that first embraced lifestyle hotels. Brands like Aloft and Hotel Indigo have led this charge, marking significant growth in recent years.
While many lifestyle hotels cater to the luxury market, we’re seeing more options appear in the midscale bracket. This shift shows that travelers are seeking unique experiences across a wider range of price points.
As the sector continues to expand, major hotel chains are adapting by creating flexible brands that maintain unique identities. Marriott, for example, leads with 11 lifestyle brands covering 44% of the current market. This gives them a strong position as they venture into new territories driven by rising demand.
Financially, lifestyle hotels are thriving. They achieve better pricing and higher food and beverage revenue than traditional counterparts. A recent report indicates they earn, on average, 30% more from dining services. Notably, hotels in Australia and New Zealand see particularly strong performances in dining, suggesting they’ve positioned themselves as destinations beyond just lodging.
Looking ahead, the surge in lifestyle hotels reflects a larger trend towards authenticity, sustainability, and personalization in travel. As the lines between lifestyle and traditional hotels continue to blur, we can expect exciting developments in this evolving sector. With Southeast Asia leading and rapid growth in Australia, the future of hospitality certainly seems vibrant.
For more insights into these trends, check authoritative sources like JLL for the latest market data and expert opinions.
