Asia lifestyle hotels grow at record level

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.”