Discover the Rise of Lifestyle Hotels in Asia Pacific: A New Era of Travel Awaits!

Lifestyle hotels are transforming the travel scene in Asia Pacific. A recent report from JLL predicts that room supply will jump by 34% by 2027. This growth stems from changing traveler preferences, eager investors, and a strong demand for unique experiences.

Since 2014, lifestyle hotel rooms in Asia Pacific have increased fourfold, adding about 65,000 new rooms. JLL’s report shows that this sector is thriving due to evolving consumer tastes and a robust demand from investors. Now, lifestyle hotels represent 6-9% of new hotel offerings, as more travelers look for personalized and stylish stays. Investors see potential for strong returns in this booming market.

Investor Interest and Industry Changes

Xander Nijnens from JLL Hotels & Hospitality Group notes that the growth of lifestyle hotels is catching the eye of many investors. He anticipates that mergers and acquisitions will rise as larger hotel chains try to build their portfolios and smaller companies seek partnerships to grow. This trend could reshape competition, pushing for more innovative offerings.

Southeast Asia vs. Australia

Southeast Asia currently has three times more lifestyle hotel rooms than Australia, New Zealand, and South Asia combined. However, Australia and New Zealand are catching up quickly, fueled by domestic tourism and a thirst for unique experiences. Lifestyle hotels in these regions can charge 10-11% more than traditional options, largely due to their personalized services and engaging social spaces. Notably, the food and beverage revenue in lifestyle hotels is 30% higher per occupied room compared to regular hotels.

Emerging Brands and New Competition

The Asia Pacific region is expected to welcome ten new lifestyle hotel brands by 2027, enhancing options for travelers. While major international brands hold 80% of the current market, local hotels are increasingly stepping up with authentic, culturally focused experiences. For instance, Marriott International currently leads the lifestyle hotel sector, with Hyatt expected to follow closely. Acquisitions of niche brands like NoMad and CitizenM indicate a strategic push by larger chains into this space.

Blurring the Lines of Luxury

Historically, lifestyle hotels thrived in luxury markets, but JLL sees an opportunity for growth in the upper midscale and even budget categories. Marina Bracciani, JLL’s Head of Hotels Research for Asia Pacific, emphasizes that traditional brands must adapt. As the defining lines between hotel types become less clear, success will come to those who blend authenticity with broader appeal.

This shift in the hospitality landscape highlights a broader trend where the demand for tailored experiences continues to reshape consumer behavior. More guests are seeking designs that resonate with their lifestyles, making the rise of lifestyle hotels not just a trend but a significant change in how we think about travel and accommodations.