Lifestyle hotels across the Asia Pacific are riding a peak wave of popularity, driven by evolving traveller preferences, strong investor appetite and the growing demand for curated, experience-led stays.
According to new research from global real estate firm JLL, the sector is poised for significant expansion, with room supply expected to grow by 34% by 2027.
The Lifestyle Hotels in Asia Pacific 2025 report predicts that 10 new international lifestyle hotel brands will enter the region over the next two years, adding to the nearly 65,000 lifestyle hotel rooms introduced in the past decade. These properties are increasingly appealing to travellers seeking distinctive design, local culture and flexible spaces, while also delivering solid financial performance for owners and operators.
Lifestyle hotels are currently commanding a 30% premium in Revenue Per Available Room (RevPAR) compared to traditional hotels, JLL found. While the sector has traditionally focused on upscale and luxury offerings, the midscale lifestyle segment is also showing strong momentum.
Australia and New Zealand are leading the region in terms of lifestyle hotel growth, fuelled by high levels of domestic travel and consumer demand for unique and authentic experiences. In these markets, hotels are increasingly positioning themselves as dining destinations, generating higher returns from food and beverage operations and further differentiating their guest offerings.
The surge in lifestyle hospitality comes at a time of broader strength in the Asia Pacific hotel investment market. JLL forecasts hotel transaction volumes will hit a record US$12.2 billion in 2024, with a further increase of up to 25% expected in 2025. Average Daily Rates (ADRs) across the region are now 19% above pre-COVID levels in local currencies, driven largely by lifestyle and luxury segments.
While markets such as South and Southeast Asia are leading the post-pandemic recovery, occupancy rates in Greater China and Australasia remain comparatively subdued. Still, over half of hotel operators surveyed expect F&B revenues and margins to improve through 2025, while only 17% anticipate declines.
Operational trends are also shifting in favour of lifestyle hotels. Many are embracing digitised check-in, flexible communal spaces, smaller yet high-quality dining venues, and pop-up concepts. These features align closely with changing guest expectations and help operators control costs in a tightening labour market.
As lifestyle hotels continue to outperform traditional models on both revenue and guest satisfaction metrics, JLL expects the segment to play a leading role in shaping the future of hospitality in Asia Pacific. With more brands entering the space and travellers prioritising experience over standardisation, the region’s hotel sector is undergoing one of its most dynamic shifts in decades.
