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• CBRE has released a report highlighting the rapid growth of lifestyle hotels across the Asia Pacific hospitality market.
• The report stated that Gen Z travellers are increasingly influencing hotel demand through preferences for experiential travel, local culture and technology-enabled stays.
• Lifestyle hotel supply in Asia Pacific recorded a 19 per cent CAGR between 2015 and 2025, significantly higher than the broader hotel market growth rate.
• The penetration rate of branded lifestyle hotels in the region is expected to increase from 1 per cent currently to 8 per cent based on the existing development pipeline.
• Singapore and Hong Kong SAR currently lead the region in lifestyle hotel penetration, while hotel conversions are emerging as a preferred growth strategy amid rising construction costs.
CBRE has stated that lifestyle hotels are emerging as one of the fastest-growing segments within the Asia Pacific hospitality market, driven by changing traveller preferences and the rising influence of Gen Z consumers across the region. Advertisement
In its latest report titled Gen Z Checks In: The Rise of the Lifestyle Hotel, the consultancy examined the evolving hospitality landscape and the increasing demand for hotel formats centred around design, cultural experiences and technology-enabled services.
According to the report, lifestyle hotels are gaining traction among younger travellers who increasingly prioritise experiential stays, authentic local engagement and seamless digital integration over conventional luxury hospitality formats. CBRE noted that Gen Z already represents the largest demographic cohort within the Asia Pacific region and is expected to exert growing influence on travel and hospitality demand as spending power rises over the coming years.
The report stated that branded lifestyle hotels remain relatively underpenetrated across Asia Pacific despite strong expansion over the past decade. CBRE estimates that the current penetration rate of branded lifestyle hotels in the region stands at around 1 per cent, although this is expected to rise to nearly 8 per cent based on the existing development pipeline.
Between 2015 and 2025, the total hotel supply across Asia Pacific recorded a compound annual growth rate (CAGR) of around 5 per cent. In comparison, lifestyle hotel supply expanded at a significantly faster pace, with CAGR estimated at approximately 19 per cent during the same period.
Ananth Ramchandran stated that the lifestyle hotel segment is positioned for sustained growth as younger consumers increasingly value culture-driven hospitality experiences, distinctive design formats and integrated technology solutions.
The report identified Singapore and Hong Kong SAR as the markets with the highest lifestyle hotel penetration rates within Asia Pacific. According to CBRE, hotel owners in these markets have shown greater willingness to adopt newer hospitality brands and alternative operating models compared to more traditional hotel markets.
CBRE also highlighted that rising construction costs continue to pose challenges for new hotel development across the region, including within the lifestyle segment. As a result, the consultancy expects hotel conversions to emerge as a more capital-efficient route for investors seeking exposure to the sector.
The report stated that conversions through soft branding arrangements or physical repositioning of existing assets into lifestyle-focused hospitality formats could provide viable opportunities for developers and investors. Smaller independent hotel assets were identified as particularly attractive candidates for value-add and opportunistic conversion strategies.
According to CBRE, the broader evolution of hospitality demand in Asia Pacific is increasingly being shaped by demographic shifts, changing travel behaviour and demand for flexible, experience-led accommodation formats, particularly among younger urban travellers.
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