Lifestyle hotels set to grow by a further 34% by 2027, says
JLL, reshaping hospitality in Asia Pacific.
SINGAPORE – Lifestyle hotel rooms in Asia Pacific has
quadrupled since 2014, with nearly 65,000 new hotel rooms having been
introduced to the region, according to a new JLL report, reflecting evolving
consumer preferences, premium pricing power, and increasing investor
interest. Projections indicate that lifestyle hotels constitute 6% to 9%
of new hotel supply in the region and that lifestyle supply is anticipated to
grow 34% by 2027.
Lifestyle hotels in Asia Pacific command a significant price
premium of 10% to 11% compared to traditional hotels, according to JLL, with
food and beverage offerings playing a crucial role in their success,
contributing a higher F&B revenue per occupied room (around 30% on average)
compared to traditional hotels.
The Asia Pacific is set to welcome 10 new lifestyle brands
by 2027 with international brands currently dominating the landscape with 80%
of supply.
However, locally grown lifestyle brands are also
demonstrating strong expansion potential, capitalizing on their deep
understanding of local culture and preferences to create authentic and
compelling guest experiences.
Marriott International currently leads the existing supply
in Asia Pacific and is set to maintain its market leadership. Hyatt is
projected to rank second between 2025-2027. Investor and guest interest will
drive continued growth, particularly for recently acquired international
lifestyle brands like NoMad, citizenM, The Standard, and Ruby as well as other
European and U.S.- based lifestyle hotel chains.
“While lifestyle hotels have traditionally dominated the
luxury and upscale segments - a trend which will continue with new brands
entering Asia Pacific - significant growth is also now emerging in the upper
midscale and below categories,” said Marina Bracciani, vice president, head of
Hotels Research, Asia Pacific, JLL. “The lifestyle concept, initially premium,
is increasingly entering 3-star and entry-level four-star properties,
indicating a promising expansion into higher-volume domestic markets.”
JLL said Southeast Asia currently boasts three times more
rooms than Australia and New Zealand and South Asia. However, Australia and New
Zealand are experiencing the most rapid growth, driven by strong domestic
demand and a growing appetite for unique and experience-driven travel.
“The strong performance and growth potential of lifestyle
hotels are attracting significant investor interest across Asia Pacific. The
efficient programming and differentiated offerings of lifestyle hotels are
making them increasingly attractive to investors, who recognize their potential
for higher returns and long-term value creation,” said Xander Nijnens, senior managing
director, head of Advisory and Asset Management, JLL Hotels & Hospitality
Group, Asia Pacific. “We expect to see continued M&A activity in the sector
as established chains look to expand their portfolios, and smaller platforms
seek to leverage the resources and distribution networks of larger players.
This consolidation will further shape the competitive landscape and drive
innovation in the years to come.”