According to CBRE’s latest report, Gen Z Checks In: The Rise of the Lifestyle Hotel, experiential spending—including travel, hotels, restaurants, and cultural activities—is expected to expand at a 10.3% compound annual growth rate (CAGR) during the period, surpassing the 9.1% CAGR forecast for physical goods. Hotel accommodation is projected to emerge as the fastest-growing category, registering a 10.6% CAGR.The report identifies Generation Z, born between 1997 and 2012, as the primary catalyst behind the transformation. As the largest demographic segment in the Asia-Pacific region gains financial independence, demand is shifting toward immersive, personalized, and digitally shareable experiences rather than traditional ownership-based consumption.
CBRE noted that travelers increasingly seek design-led environments, technology-enabled services, wellness-focused amenities, and community-driven experiences, prompting the rapid emergence of lifestyle hotels as a preferred hospitality format.
The lifestyle hotel segment has significantly outperformed the broader hospitality industry across Asia Pacific. Between 2015 and 2025, lifestyle hotel supply expanded at a 19% CAGR, compared with 5% for the overall hotel market. Growth is expected to remain strong through 2030, with lifestyle hotel supply forecast to grow at 10% annually—five times faster than the broader sector.
Industry experts believe India presents one of the region’s most attractive investment opportunities due to its relatively low penetration of lifestyle hotels. According to Anshuman Magazine, consumers increasingly prioritize culturally immersive and experience-driven stays, creating a structural opportunity for investors and hotel operators.
Ada Choi described the experience economy as a long-term transformation rather than a temporary trend, highlighting India’s rising incomes, expanding Gen Z population and undersupply of lifestyle hospitality assets as key growth drivers.
CBRE also pointed to a growing trend of converting older independent hotels into lifestyle properties, allowing developers to capitalize on demand while avoiding high land acquisition and construction costs. The firm expects this asset-repositioning strategy to play a critical role in shaping the next phase of India’s hospitality investment cycle.
