Indians Expected to Spend More on Experiences Than Goods by 2030, Creating Major Opportunity for Hospitality Sector: CBRE

NEW DELHI — Indian consumers are set to spend more on experiences than physical goods over the next five years, a shift that could reshape the country’s hospitality and real estate sectors and create significant opportunities for investors, according to a new report from global real estate services firm CBRE.

The report, Gen Z Checks In: The Rise of the Lifestyle Hotel, forecasts that spending on experiences—including travel, hotels, restaurants, and cultural and recreational activities—will grow at a compound annual growth rate (CAGR) of 10.3% between 2025 and 2030, surpassing the projected 9.1% growth in spending on physical goods.

Among experiential categories, hotel accommodation is expected to see the strongest growth, expanding at a 10.6% CAGR during the same period.

The findings point to a broader transformation in consumer priorities as younger Indians increasingly prioritize memorable experiences over material purchases, a trend that accelerated in the aftermath of the COVID-19 pandemic.

“The contemporary consumer no longer just purchases lodging but wants unique, culturally immersive, and digitally shareable environments,” said Anshuman Magazine, Chairman and CEO for India, Southeast Asia, the Middle East and Africa at CBRE.

“This structural shift towards experiential consumption is an enduring macroeconomic trend,” Magazine said. “For property owners and institutional investors, the lifestyle hotel segment represents a compelling double-win: measurable RevPAR and ADR premiums over standardized assets, and a capital-efficient conversion pathway that maximizes long-term asset value.”

Gen Z Reshaping Hospitality Demand

According to CBRE, the rise of Generation Z is playing a central role in the shift. Born between 1997 and 2012, Gen Z now represents the largest demographic cohort in the Asia-Pacific region and is expected to become the fastest-growing consumer spending group as more members enter the workforce and achieve financial independence.

Unlike previous generations, Gen Z travelers are seeking highly personalized and visually distinctive travel experiences. Hotels are increasingly expected to serve not only as accommodations but also as social, cultural and wellness destinations.

The report notes that younger travelers value curated design, local authenticity, communal gathering spaces, wellness offerings and seamless technology, from mobile check-ins to smart-room features.

“The experience economy is not a trend but a structural reset,” said Ada Choi, Head of Research for Asia Pacific at CBRE. “In India specifically, rising incomes, a maturing Gen Z consumer base, and a significant undersupply of lifestyle hospitality product are converging to create one of the most attractive investment environments in the region.”

Lifestyle Hotels Emerging as a Growth Story

The report identifies lifestyle hotels as one of the hospitality industry’s fastest-growing segments. Positioned between traditional chain hotels and independent boutique properties, lifestyle hotels combine locally inspired design and experiences with the operational support and distribution networks of major brands.

Across Asia Pacific, lifestyle hotel supply expanded at a 19% CAGR between 2015 and 2025, far outpacing the broader hotel market, which grew at just 5% annually during the same period.

That momentum is expected to continue. CBRE projects lifestyle hotel inventory across the region will grow at a 10% CAGR through 2030, compared with only 2% growth for the overall hotel sector.

The segment is also proving financially attractive. In 2025, upper-upscale lifestyle hotels across Asia Pacific generated a 13% revenue-per-available-room premium compared with traditional hotels in the same category, while upscale lifestyle properties achieved an additional 7% premium.

Industry analysts attribute the stronger performance to higher food-and-beverage spending, stronger guest engagement and more efficient operating models.

India Seen as Underserved Market

While lifestyle hotels have gained traction in markets such as Singapore and Hong Kong, penetration remains relatively low in India, creating what CBRE describes as a substantial opportunity for developers and investors.

Rather than pursuing expensive ground-up developments, many investors are turning to conversions of existing hotel assets. Older independent properties can often be repositioned as lifestyle hotels at significantly lower costs than new construction projects.

This strategy is becoming increasingly attractive as land prices and development costs continue to rise across major Indian cities.

The report also highlights a growing preference among investors for smaller hospitality transactions. Hotel assets valued below $100 million accounted for 42% of total Asia-Pacific hotel investment volume in 2025, up from 31% in 2020. Roughly one-third of those transactions involved independent hotels that could be repositioned and upgraded.

For developers seeking to capitalize on the trend, CBRE recommends tailoring projects to local market demand, designing flexible spaces that preserve future redevelopment options and creating community-oriented food, beverage and social spaces that attract both travelers and local residents.

A Broader Consumer Shift

The report suggests that the rise of experiential spending extends beyond hospitality and reflects a deeper change in consumer behavior.

After years of pandemic-related restrictions, consumers are increasingly prioritizing travel, social interaction, wellness and personal enrichment. As disposable incomes rise and younger generations gain spending power, experiences are becoming a larger share of household budgets.

For India’s hospitality industry, that shift could usher in a new phase of growth centered not just on providing accommodation, but on creating destinations that blend design, culture, technology and community.

If current projections hold, the country’s next major consumer boom may be driven less by what people buy and more by what they experience.