#Japan #Tokyo #JLL #Lifestyle Hotels #hospitality market

The Rise of Lifestyle Hotels in the Asia-Pacific Region

As of October 2, 2025, a new study conducted by JLL, a leading global real estate service firm based in Chicago, reveals a transformative trend in the Asia-Pacific hospitality market. According to the report titled "Lifestyle Hotels in the Asia-Pacific Region 2025", the number of lifestyle hotel rooms in the region has quadrupled since 2014, leading to the supply of approximately 65,000 new rooms.

The ongoing growth in the lifestyle hotel sector is attributed to factors such as the diversification of consumer needs, premium pricing strategies, and increased interest from investors. The report predicts that lifestyle hotels will account for 6-9% of the total new guestroom supply in the coming years.

Investor Interest and Market Dynamics

Zander Nijnens, Senior Managing Director and Head of Advisory & Asset Management at JLL Hotels & Hospitality Group for the Asia-Pacific region, stated, "Investors are showing a heightened interest in the strong performance and future growth potential of lifestyle hotels in the Asia-Pacific. The efficiency of operations and differentiated services offered by these hotels enhance their appeal, providing high profitability and long-term value creation possibilities. As a result, large hotel chains are expanding their portfolios while smaller chains aim to leverage the resources and distribution networks of major players, indicating that mergers and acquisitions within the industry will continue to rise.

This restructuring is expected to reshape the competitive landscape of the market and foster innovation over the next few years. Currently, Southeast Asian lifestyle hotels boast a total room count three times that of Australia, New Zealand, and South Asia combined. Meanwhile, Australia and New Zealand have shown the fastest growth, driven by strong domestic demand and an increasing appetite for unique travel experiences.

Premium Pricing and Unique Experiences

Lifestyle hotels maintain an average room rate that is 10-11% higher than traditional hotels, attracting discerning travelers willing to pay extra for unique experiences and personalized service. Exclusive dining experiences and attractive amenities are crucial for attracting guests and encouraging repeat visits. In fact, the F&B (food and beverage) department's revenue per available room for lifestyle hotels averages around 30%, significantly outperforming traditional hotel counterparts.

The Asia-Pacific region anticipates the entry of ten new lifestyle brands by 2027, intensifying competition while expanding options for travelers. Major foreign brands currently dominate about 80% of the supply, leveraging brand recognition and established distribution networks. However, domestic lifestyle brands are emerging, offering authentic and attractive accommodation experiences rooted in a deep understanding of regional culture and preferences, indicating substantial growth potential.

Currently, Marriott International leads the existing room supply in the Asia-Pacific, and it is expected to continue spearheading the market. Hyatt is projected to rise to second place between 2025 and 2027. Given the interest from both investors and guests, lifestyle hotels will likely flourish, with notable growth seen in internationally acquired lifestyle brands like NoMad, CitizenM, The Standard, and Ruby.

Continued Evolution and New Entrants

Marina Bracchiani, Vice President and Head of Asia-Pacific Hotel Research at JLL, highlighted, "Lifestyle hotels have continuously excelled in the luxury and upscale segments. This trend will persist as new brands enter the Asia-Pacific market; however, significant growth is also anticipated within the upper midscale and lower categories. The concept, originally targeted at premium guests, is expanding into three-star and entry-level four-star categories, indicating potential for broader domestic travel market expansion."

The entry of European and Middle Eastern brands into the Asian lifestyle hotel market will further escalate competition. Operators will need to consistently innovate and enhance their services to secure an edge. Conventional hotel brands must adopt elements of lifestyle hotels to appeal to a broader range of travelers and maintain competitiveness in an evolving market, leading to a blurring of lines across categories.

Kura Ohashi, Executive Vice President and Head of Advisory for JLL Japan's Hotels & Hospitality Division, noted, "Japan's lifestyle hotel market is in the early stages of development compared to other countries in the Asia-Pacific, and we believe there is significant room for growth. In response to the proactive market entry of major foreign brands, domestic lifestyle hotel brands and key developers are accelerating the strategic rollout of their unique offerings, maintaining a high level of interest for continued investment and development."

In conclusion, the thriving lifestyle hotel sector in the Asia-Pacific region is not only reshaping the hospitality landscape but also offering a wide array of choices for travelers, thus paving the way for innovative and diverse guest experiences. For more detailed insights, please refer to the full report available in both Japanese and English versions.