13 minute read
DEVELOPMENT: GREAT EXPECTATIONS
GREAT EXPECTATIONS
LUXURY AND LIFESTYLE HOTELS CONTINUE TO BE IN HOT DEMAND AS TRAVELLERS SEEK CURATED AND PERSONALISED EXPERIENCES.
ACCOR
Brett Forer, Vice President Development, Pacific
Accor stands as the world’s second-largest operator in luxury hospitality. Driven by our esteemed luxury brands as well as lifestyle with Ennismore, the fastest-growing lifestyle hospitality company where Accor holds a major share, Accor has curated a remarkable global network of iconic, stylish and memorable properties.
The Pacific region has long been a strategic focus for Ennismore’s growth, and its entry into the region aligns with the unique attractiveness of the market. In recent years, there has been a rising demand for lifestyle brands, where locals and international guests are looking for authentic, creative and immersive experiences.
In 2025, Ennismore will introduce three highly anticipated hotels in Australia – 25hours Hotel The Olympia in Sydney, Mondrian Gold Coast Hotel and Residences at Burleigh Heads, and Hyde Perth – all making their Australian brand debuts.
We also recently announced the signing of The Hoxton in Melbourne’s historic Cremorne suburb, which is a melting pot for creativity and innovation and a natural fit for the brand. The Hoxton Melbourne is set to open in 2027.
In New Zealand, Ennismore will open Jo&Joe Auckland and Hyde Queenstown in the coming years.
Sofitel, the first name in French luxury hotels, celebrates its 60th anniversary in 2024, with the brand currently undergoing a major renovation program globally. Around 26% of the network is committed to upgrading works. Sofitel Sydney Wentworth just unveiled a $70 million transformation including four new bars and restaurants, opened in collaboration with House Made Hospitality.
Sofitel Noosa Pacific Resort is set to begin renovations, promising a renewed ambiance of coastal elegance. Meanwhile, the recently launched L’Occitane spa at Sofitel Queenstown offers a one-of-a-kind, rejuvenating experience, blending French beauty and wellness with local traditions. Sofitel Fiji Resort and Spa also recently completed a refurbishment, including to the popular adults-only Waitui Beach Club.
Manly Pacific Sydney MGallery Collection also recently emerged from a significant transformation, enhancing its oceanfront appeal. This summer, the hotel will launch the new Cibaria restaurant by renowned chef Alessandro Pavoni of Ormeggio fame.
There is strong interest in our luxury and lifestyle brands, and we are actively exploring numerous opportunities to expand these unique offerings across the Pacific. As we continue our growth, we remain dedicated to delivering exceptional experiences that resonate with today’s discerning travellers.
EVT
Norman Arundel, Director of Hotels and Resorts
The luxury sector is continuing to boom across a range of industries, from fashion to entertainment to travel. At EVT, we are seeing this filter through our network with a steady increase in demand for our luxury and lifestyle hotel experiences. Despite increased interest rates globally, demand for this sector continues to grow, with guests prioritising memorable getaways and more indulgent experiences, such as spaQ at QT Sydney or a private mountain sunrise breakfast at Thredbo.
We are also seeing a growing divide between rates at our lifestyle hotels and other segments of the market. At EVT, we’re determined to stay at the forefront of this opportunity as we continue to expand our premium lifestyle hotel network via our QT, Atura and Independent Collection brands. We remain focused on constantly sharperning our hotel operational and management skills to ensure we deliver the experience our guests desire and leave long-lasting memories for them.
Importantly, we find the appeal of luxury isn’t limited to lifestyle hotel brands. More traditional hotels such as Rydges are also seeing a surge in demand for high-end offerings, with guests increasingly booking suites and opting for tailored luxury packages. Our recent refurbishments at Rydges Melbourne and Rydges North Sydney now both offer suites and apartments, which are seeing strong occupancy and return for the business.
This continued momentum across luxury and lifestyle underscores EVT’s premiumisation strategy, not only across our hotel network, but also throughout our cinema division and Thredbo Alpine Resort.
HILTON
Tushar Raniga, Regional Director, Development – Australasia
Increasingly, we are seeing our guests wanting authentic experiences with the ability for local exploration and adventure.
Luxury travellers are seeking hotels that tell their own stories. Personalised design and décor reflecting the essence of the destination with features like original art from local artists and localised hotel experiences are just as important as the hotel’s core luxury offering.
The Tapestry Collection by Hilton features over 135 distinctive hotels across 16 countries and territories all designed with this personalised and tailored touch.
In December, The Motley Hotel Richmond will become the first Tapestry Collection by Hilton hotel in Australia and perfectly encapsulates the intrinsically unique Richmond community it sits in. With its bohemian and eclectic vibe nestled amidst historic Federation Terraces, its rich and storied past is perfectly woven into the hotel’s fabric.
Hilton also exclusively partnered with Small Luxury Hotels of the World this year dramatically expanding our portfolio of luxury hotel experiences by nearly 400 boutique properties. This partnership offers our guests new ways of staying with Hilton, from rustic huts and woodland treehouses to rainforest retreats and coastal villas.
Despite cost-of-living pressures, occupancy levels remain high and in demand both from a leisure and business perspective. However, travellers are more discerning about their travel experiences looking for value and holistic experiences.
Finally, labour is, and will likely always remain as, the single most challenging area in the hospitality industry. Finding and retaining quality team members is the backbone of delivering a calibre of service expected by luxury travellers.
IHG HOTELS & RESORTS
Cameron Burke, Director of Development – Australasia and Pacific
As one of the world’s leading hospitality companies, IHG Hotels & Resorts is strategically positioned to capitalise on shifting consumer travel preferences targeting the discerning and experientially inclined. Hotel guests are increasingly demanding stylish design, personalised service, and locally-loved experiences. To deliver on these demands, we’re in close collaboration with key stakeholders to optimise performance and future development outcomes throughout our growing luxury and lifestyle estate in the Australasia and Pacific region.
As a testament to the strong resonance of our brands within this segment, and in support of our commitment to meeting contemporary expectations across urban and leisure destinations, over 30% of IHG’s pipeline now comprises luxury and lifestyle hotels, resorts and branded residences in Australasia and Pacific.
Earlier this year at AHICE Asia Pacific, we announced the signing of the 155-key Kimpton Teneriffe in Brisbane – marking an exciting milestone as Kimpton continues to gain traction across the region. We also opened InterContinental Auckland to much fanfare and have been delighted with the level of trans-Tasman anticipation surrounding the 2025 openings of Hotel Indigo Little Collins and Hotel Indigo Auckland – both of which are set to elevate their locality and offer distinctly upper-scale lifestyle-led hospitality experiences.
Our commitment to growth throughout Australasia and the Pacific underscores our confidence in the region’s potential, and our dedication to driving optimal outcomes for the benefit of our owners, guests, and IHG One Rewards members. We are looking forward to sharing more regarding our robust pipeline in the luxury and lifestyle space – with several landmark projects, poised to set new standards in luxury, scheduled for unveiling next year.
LANGHAM HOSPITALITY GROUP
Alison Hulm, Director of Development, Australasia,
For Langham Hospitality Group, demand for luxury accommodation remains robust but subject to evolving dynamics. Key among these is the growing appetite we’ve seen among guests for curated and transformative travel experiences. It’s very much a global phenomenon, which we’re actively catering to through our concierge teams and – to an increasing extent – through our budding loyalty and experiences platform, Brilliant by Langham.
At the same time, guests have come to expect all our offerings to be supported by sustainable and eco-conscious practices. This is a priority that we share and have long been addressing at our luxury properties, almost all of which are EarthCheck certified.
As a result of our efforts, interest levels in our luxury and flagship brand, The Langham Hotels and Resorts, have been notably resilient –notwithstanding the labour and supply chain cost pressures that have challenged Australasia of late.
Those same pressures, which are starting to subside, have interestingly bolstered performance and demand for luxury hotels due to the resulting construction slowdown and supply constraint. As such, expect to see lots of new and exciting luxury segment openings in this part of the world through 2026 and 2027.
We very much expect to see The Langham benefitting from this shift together with the remarkably positive buzz being generated by its latest properties, The Langham, Gold Coast and The Langham, Jakarta; and its upcoming properties of note, namely The Langham, Venice, The Langham, Riyadh, The Langham, Bangkok, and The Langham, Kuala Lumpar.
MARRIOTT INTERNATIONAL
Richard Crawford, Vice President of Hotel Development ANZP
AS THE WORLD’S largest hotelier, Marriott International manages and franchises hotels across all tiers of accommodation. Most notably, we are recognised as the global leader in the luxury accommodation segment, with Ritz-Carlton, St. Regis, JW Marriott, W Hotels, Edition, The Luxury Collection, and Bvlgari brands enjoying dominant market profiles and growing footprints.
Lifestyle brands, however, are not exclusively the domain of luxury accommodation, with Marriott’s Select brands including AC Hotels, Aloft and Moxy offering distinctive contemporary accommodation at affordable price points. And, our upper-upscale brands including Westin, Le Meridien, and Autograph Collection provide engaging lifestyle offerings in the traditional five-star segment.
A feature of Marriott’s current period of growth in Australia has been reinvigoration in the luxury accommodation segment, buoyed by a resurgent affluent domestic travel market, in what our industry is widely terming a “flight to quality”. Our Ritz-Carlton, JW Marriott, W, and Luxury Collection branded hotels in Australia have been amongst our highest performing assets in recent years, demonstrating evidence of strong travel demand for luxury experiences with global pedigree.
Record average room rates at these hotels has given confidence to hotel developers, who recognise there is now a strong business case for luxury hotels in Australia. This investor appetite has seen Marriott recently announce St. Regis, Ritz-Carlton, and Luxury Collection resorts to be built on the Gold Coast. Of note, global demand for luxury travel is expected to grow by 9% over the next three years, whilst new hotel supply in this segment will only increase by 5%, signaling a favourable outlook for hotel investors.
Importantly, at Marriott, we are focused on satisfying the changing needs of travellers in the luxury and lifestyle segments, who we know through our research, such as the Luxe Landscapes Report, demand once-in-a-lifetime experiences, hyper-personalisation, authenticity, wellness, and sustainability. Our commitment to honouring these trends includes specialised attention to operations, design, food and beverage, and talent.
In the last two years, Marriott International has added three luxury hotels to our Australia Pacific portfolio, with the opening of W Sydney (the world’s largest W hotel), The Ritz-Carlton Melbourne, and JW Marriott Auckland. In the same period, hotel openings in the Select and Premium lifestyle segments have included Le Meriden Melbourne, Moxy Sydney Airport, and AC Hotel by Marriott Melbourne Southbank. These advancements reinforce Marriott’s position as the leader in luxury and lifestyle hotels in Australia, and provide further world-class examples of how we are reshaping the quality and diversity of our local industry.
RADISSON HOTEL GROUP
Danilo Curcuruto, Director of Development Australasia
The luxury and lifestyle hotel sector continues to experience significant shifts in demand and occupancy patterns as travellers seek high-quality, personalised experiences, with an increased focus on unique and immersive offerings that cater to both leisure and business guests.
One of the ongoing challenges for luxury developments remains the high construction and operational costs, as well as the need for constant innovation to meet evolving traveler expectations. However, these pressures also present opportunities for brands to stand out by delivering luxury with a sustainable edge and authentic local experiences. For projects to be financially viable, a strong positioning within the luxury and lifestyle category is essential to achieve both high performance and revenue.
Radisson Hotel Group’s upcoming openings in Australasia illustrate this trend, with a focus on personalised service and advanced technology to elevate guest experiences. Notable new signings, including the Radisson Blu Mirage Resort Naisoso Island, Fiji, and Radisson RED in Auckland, reflect a growing demand for hotels that appeal to luxury and lifestyle travelers. The Radisson RED brand, known for its bold design, vibrant social spaces, and focus on art and music, captures the energy of modern, experience-seeking guests, setting it apart as an exciting option in the lifestyle segment. These projects represent a shift toward properties blending modern amenities, design-conscious elements, and local cultural immersion.
As demand increasingly shifts towards unique, experience-driven stays, brands that adapt quickly to these changing preferences are well-positioned to capture substantial market share in the future.
TFE HOTELS
John Sutcliffe, Director of Development
Travellers continue to seek genuinely unique luxury hotels when they travel, whether for business or leisure, and for their meetings and events. TFE’s one-of-a-kind collection properties continue to lead the way for boutique luxury hotels across Australia and New Zealand and we’re excited to see The Eve Hotel Sydney (which opens this summer), and Hannah St Hotel (which joins the portfolio at the end of next year), join the network in the coming months.
Whilst the status and performance of our Collection properties means that they remain in high demand, we remain cognisant that our Collection owners are committed to creating the best hotel in their specific location – a destination in its own right so to speak. This commitment to creating a legacy hotel is paramount to their success and TFE is diligent in ensuring that additions to our portfolio align with this ethos. Our commitment to maintaining the Collection’s exclusivity, results in us declining to pitch the brand when requested more often than not.
That said, there are many opportunities for the expansion of our Collection properties, and we look forward to making further announcements across Australia and New Zealand in the next 12 months.
