Lifestyle Hotels Surge as Gen Z Drives Demand - CBRE
Commercial real estate firm CBRE is reporting a significant rise in demand for lifestyle hotels, attributing the trend to the growing influence of Generation Z as they enter adulthood and begin travelling more frequently. The observation highlights a potential gap in the market for brands operating in the upper midscale and below hotel categories.
CBRE’s analysis indicates that younger travellers, particularly Gen Z, are increasingly seeking unique and experience-driven accommodation options that differentiate themselves from traditional hotel chains. These 'lifestyle hotels' often feature distinctive design elements, local partnerships, and a focus on creating a sense of community and authenticity.
The current market landscape reveals a relative scarcity of lifestyle brands within the upper midscale and lower hotel segments. This presents a notable opportunity for hotel brands to strategically expand their offerings and cater to the evolving preferences of Gen Z and other younger demographics. Experts suggest that brands which can successfully capture this demand are likely to see significant growth in the coming years.
CBRE’s report doesn't provide specific figures on market share or projected growth rates, but it underscores the broader shift in consumer behaviour towards experiences over purely functional travel. The trend is expected to impact hotel development and investment decisions across the UK and beyond, as developers and investors seek to capitalise on this emerging demand.
