Lifestyle hotels in Asia Pacific

Lifestyle hotels are transforming hospitality by emphasizing vibrant public spaces over traditional rooms, where travellers and locals connect through distinctive experiences. As our Global Hotel Investment Outlook 2025 report highlights, this sector has become entrenched in modern hospitality, offering opportunities for brands and investors, as highlighted with the recent acquisitions of Standard International by Hyatt and of CitizenM by Marriott International.

In Asia Pacific, the lifestyle hotel trend gained momentum in 2008, marking a pivotal year with more new lifestyle brands entering the market than in the previous twenty years combined. In 2008 alone, brands like W Hotels and Aloft inaugurated and expanded their first properties in the region, establishing the foundation for what has evolved into a major hospitality industry movement. Lifestyle hotels continued to flourish in Asia Pacific through both global chain expansion and distinctive boutique platforms.

How will the lifestyle hotel revolution shape hospitality in the region in the years to come?

1. Four times more lifestyle hotel rooms in 2024 than in 2014, with lifestyle supply anticipated to grow 34% by 2027

2. Southeast Asia counts three times more lifestyle hotel rooms than Australia New-Zealand and South Asia; ‘Down Under’ displaying the strongest growth

3. Lifestyle hotels concentrated in upscale and above segments, yet upper midscale and below show promising growth

4. Ten new lifestyle brands anticipated to enter Asia Pacific by 2027, with international lifestyle brands representing more than 80% of the lifestyle supply (in no. of rooms)

5. Lifestyle hotels in APAC achieve a 10-11% Price Premium, however with nuances

6. Lifestyle hotels registering 30% higher F&B (including MICE) revenue per occupied room on average compared to traditional hotels

Asia Pacific has witnessed remarkable growth in lifestyle hotel supply over the past two decades. This expansion accelerated notably from 2014, marking the beginning of an unprecedented expansion period. Since this inflection point, nearly 65,000 new lifestyle hotel rooms have been introduced to the Asia Pacific market. The last decade has been particularly transformative, with lifestyle hotel inventory quadrupling during this period. This strong growth rate reflects both shifting consumer preferences toward experiential stays and strategic repositioning by hospitality groups and independent operators recognizing the value of lifestyle hotels.

In 2024, lifestyle properties achieved their highest representation among all new hotel openings. The momentum shows no signs of slowing, with lifestyle hotels likely to constitute between 6-9% of all new hotel supply entering the market between 2025 and 2027. This surpasses even the record-breaking levels observed in 2024, underscoring the transition of lifestyle from an emerging trend to an established foundation of Asia Pacific hospitality offering.

Lifestyle accommodations experienced growth across all subregions over the past ten years.

Despite Greater China outpacing the rest of the region in total number of lifestyle hotel rooms with the proliferation of prominent brands like Indigo, W and aloft, Southeast Asia was the first subregion where lifestyle hotels took off.

Indeed, Southeast Asia saw rapid development in lifestyle hotel offerings, propelled by the introduction and growth of brands such as Aloft, Autograph Collection, Hotel Indigo.

Back in 2008, experiential offerings for hotel guests were primarily found in upscale and above properties, as these were viewed as premium amenities. Not surprisingly, 62% of lifestyle hotel inventory that year was concentrated in the luxury as the first mover segment in lifestyle.

This trend has persisted following the pandemic, with lifestyle brand growth continuing to occur predominantly in the luxury and upper upscale segments. New luxury lifestyle brands entering the APAC market between 2025 and 2027 include: Emblems, The Unbound Collection, Thompson Hotels, Delano.

Gradually, we are observing lifestyle take a firmer hold in the higher volume segments and domestic-focused products in the three-star and entry level four-star categories in Asia Pacific. Many of the trends supporting growth in full service lifestyle hold true in this segment and we expect high growth here, including from best-in-class domestic brands.

Marriott International leads the Asia Pacific region with eleven lifestyle brands, representing 44% of the total existing lifestyle hotel supply as of 2024. IHG Hotels & Resorts follows in second place with four brands, while Hyatt occupies the third position.

Post-pandemic, lifestyle hotel development has shifted from core urban locations with established brands to conversion projects using soft brands by major hotel groups. These soft brands allow properties to maintain unique identities and offer distinct and differentiated experiences without the need to follow strict brand standards.

Looking ahead to 2027, Marriott International maintains its market leadership, whilst lifestyle hotels under Hyatt brands are anticipated to represent 23% of the total upcoming new lifestyle supply between 2025 and 2027.

Lifestyle brands are anticipated to continue expanding in Asia to support interest from both investors and guests, especially for brands that have been recently acquired by international hotel chains, such as NoMad (Hilton), CitizenM (Marriott), The Standard (Hyatt), Ruby (IHG), and European/US based lifestyle hotel chains.

In Asia Pacific (APAC), lifestyle hotels command a price premium of an Average Daily Rate (ADR) of approximately 10-11% above the overall market average. This premium has remained stable year-on-year, indicating sustained consumer willingness to pay higher rates for lifestyle hotel experiences through market cycles.

The premium is consistent across different APAC subregions, though with some notable geographic variations. Australia and New Zealand (ANZ) demonstrates a slightly higher ADR premium for lifestyle properties compared to Southeast Asian (SEA) markets. At a more granular level, these premiums vary significantly based on location, concept and execution.

Where this price premium is paired with smaller room sizes, returns to investors are further elevated. Beyond this, investment returns can be enhanced through more appealing wellness and dining outlets, as well as associated branded residences or being integration in mixed-use precincts.

In Asia Pacific, lifestyle hotels see their Food & Beverage (including MICE) recorded approximately 30% higher revenue per occupied room than the broader market average.

Globally lifestyle hotels tend to over-index on dining outlets and bars as part of delivering a more engaging and enhanced stay. This generally holds true in Asia, although the revenue premium may be less pronounced as many hotels (especially in Southeast Asia) have extensive F&B outlets across the board.

In Australia and New Zealand, lifestyle hotels demonstrate substantially higher F&B revenue compared to their overall markets. This success may be attributed to lifestyle brands effectively positioning their properties as destinations, not only retaining hotel guests for dining but also attracting non-resident customers to their food and beverage venues.

Lifestyle hotels in Asia Pacific have quickly moved from being an emerging segment to core to every urban and resort market in the region with depth – attracting many savvy investors.

The addition of a further 34% growth in lifestyle supply by 2027 signals a continued upward trend in the segment. We expect growth to gradually shift further into the domestic driven midscale segments, and for the lines between “lifestyle” and “traditional” hotels to continue to blur.

Southeast Asia's leading position, complemented by brand proliferation in Australia, will reshape competitive dynamics across the region. As the sector continues to evolve, the question remains whether pricing premiums will hold – all indications are that it will for now.

Lifestyle hotels concepts, brands and design will continue to flourish, emphasising authenticity, sustainability, and ultra-personalisation — establishing this segment as a fundamental and expanding component of Asia Pacific’s hospitality landscape.