CBRE, a leading global real estate firm, reports a rising demand for lifestyle hotels, fueled by the growing influence of Generation Z. The trend indicates a shift in traveler preferences towards hotels offering unique experiences and design-focused accommodations.

According to CBRE’s analysis, the current market shows a relative scarcity of lifestyle brands within the upper midscale and lower hotel categories. This gap presents a significant opportunity for hotel brands to broaden their portfolios and cater to the evolving needs of younger travelers. Gen Z, now entering adulthood and increasing their travel frequency, prioritizes hotels that reflect their values and offer personalized, engaging experiences.

Lifestyle hotels typically distinguish themselves through distinctive design elements, curated amenities, and a focus on creating a sense of community. They often incorporate local culture and offer flexible spaces that cater to both work and leisure. This contrasts with more traditional hotel models that prioritize standardized services and amenities.

CBRE’s observation highlights a broader trend in the hospitality industry, where experiential travel and personalized services are becoming increasingly important drivers of demand. As Gen Z continues to shape the travel landscape, the opportunity for lifestyle brands to expand and capture market share remains substantial. The firm suggests that brands seeking growth should consider strategically entering these underserved segments of the market to capitalize on this evolving consumer preference.