Lifestyle hotel brands are slowly emerging as the next key growth sector in Australia, as operators look to tap into the next generation of travelers and draw millennials back to the hotel market.
This was a key outtake from CBRE Hotels’ annual Check IN report which examines Australia’s hotel sector, emerging trends and the market outlook.
CBRE’s report defines a lifestyle hotel as one that has many of the characteristics of a boutique hotel, with a heavy focus on being both creative and innovative, as well as having the potential to be replicated and rolled out across the globe.
CBRE Research Manager Benjamin Martin-Henry noted that while the uptake of lifestyle brands hasn’t been as strong in Australia as other regions, owners are recognising the threat of Airbnb and the changing accommodation preferences of millennials and Generation Z.
“The latest generations are becoming key drivers of the lifestyle and leisure segment, with preferences for experiences, highly social spaces, constant connectivity and availability of food and beverage services,” Mr Martin-Henry said.
A major operator tapping into the lifestyle brand is the Marriot with its Moxy venture, specifically targeted at a younger demographic. On its website, it describes its hotels as being “one-part razzle to one-part dazzle” with 24/7 food and drinks and a lobby like a playground.