- Experience spending to grow at 10.3 percent CAGR by 2030.
- Lifestyle hotel supply grew at 19 percent CAGR since 2015.
- Gen Z emerging as a key driver of experiential travel demand.
Hotel accommodation spending is expected to grow even faster, at 10.6 percent annually over the same period. The numbers point to a steady move away from material purchases toward travel and experiences.
Gen Z sits at the center of this change. As the largest demographic cohort across Asia Pacific, younger consumers are expected to spend faster than any other generation as their financial independence grows. They tend to look for hotels that feel local, social and digitally connected rather than conventional branded stays.
"The contemporary consumer no longer just purchases lodging but wants unique, culturally immersive and digitally shareable environments,” said Anshuman Magazine, CBRE chairman and CEO for India, South-East Asia, Middle East and Africa. “This structural shift towards experiential consumption is an enduring macroeconomic trend.”
Lifestyle hotels are stepping into that space. Between 2015 and 2025, lifestyle hotel supply across Asia Pacific grew at a CAGR of 19 percent, compared with just 5 percent for the broader hotel market. CBRE forecasts that gap continuing, with lifestyle supply growing at 10 percent annually through 2030 against 2 percent for the wider market.
The segment also commands a pricing premium. In 2025, upper-upscale lifestyle hotels across Asia Pacific posted a 13 percent RevPAR premium over traditional hotels in the same category, while upscale lifestyle properties recorded a 7 percent premium.
Ada Choi, CBRE’s head of research, Asia Pacific said the experience economy is not a passing trend but a structural reset.
"In India specifically, rising incomes, a maturing Gen Z consumer base, and a significant undersupply of lifestyle hospitality products are converging to create one of the most attractive investment environments in the region," she said.
India's relatively low penetration of lifestyle hotels compared with markets like Singapore and Hong Kong gives developers and investors room to move. The report also noted growing interest in converting existing independent hotels into lifestyle properties as a more cost-effective option given rising land and construction costs.
Separately, the Allianz Partners Global Travel Confidence Index 2026 found 87 percent of Indians plan to travel this summer.
