Luxury Hotels Pivot to ‘Experiences’ as Gen Z and Millennials Redefine Travel
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A growing demand for authentic, emotionally resonant travel is forcing luxury hotels to rethink their approach, moving beyond traditional markers of opulence to focus on creating immersive experiences tailored to younger travelers. Today’s tourists aren’t simply seeking a place to stay; they’re “looking for a point of view,” according to industry experts.
The Rise of Experiential Travel
The shift in travel preferences is being driven by millennials and Gen Z tourists, who prioritize experiences over material possessions. This new generation of travelers is less interested in lavish displays of wealth and more focused on finding unique and meaningful connections with the places they visit. As one interior designer explained at the Fortune Brainstorm Design conference in Macau on Tuesday, “Luxury is not about the fabrics. It’s not about the marble. It’s about feeling. It’s about connection. It’s about the emotion that you get when you’re in a space.”
This emphasis on emotional resonance extends to hotel design and service. The goal, according to the designer, is to create spaces that feel personally designed for each guest, fostering “a sense of resonance” and connection. This level of personalization is what designers are striving for in the current market.
Swire Hotels’ “Houses Not Hotels” Strategy
Swire Hotels is among the hospitality groups responding to this evolving landscape. The company is expanding its Upper House brand – initially conceived as a departure from traditional luxury hotels – across mainland China and East Asia. The brand’s tagline, “Houses not Hotels,” encapsulates its core philosophy: to offer a more youthful, dynamic, and less formal experience.
“We’re finding that people are extending their trip,” a Swire Hotels deputy chairman stated on Tuesday. “They’ve got a business trip, and they might extend the trip by a day or so to really explore the city or the location they happen to be in.” This trend towards longer stays creates opportunities for hotels to provide personalized services, such as curated city tours. For example, staff at the Upper House Shanghai can personally escort guests through the city’s historic French Concession district.
The Upper House model prioritizes intimacy and personalized service, with properties typically featuring fewer than 100 rooms. “It’s very hard to deliver true personalization and luxury for a property that has much more than 100 keys,” the deputy chairman noted.
Expansion Plans and Financial Performance
In mid-October, Swire Hotels rebranded its upscale House Collective as “The Upper House” and announced plans for new properties in Shenzhen (opening in 2027, designed by Büro Ole Scheeren), Xi’an, Tokyo, and Bangkok – the latter featuring the brand’s first branded residences designed by Foster + Partners.
Despite the positive outlook, Swire Hotels reported 441 million Hong Kong dollars ($56 million) in revenue for the first six months of 2025, a slight decrease compared to the previous year. The company attributed this to a slower-than-expected recovery in Hong Kong’s hotel market and mixed performance in mainland China. However, Swire Properties as a whole generated 8.7 billion Hong Kong dollars ($1.1 billion) during the same period, and shares are up over 35% for the year.
Diversifying Tourism Sources
Asian tourism, traditionally reliant on visitors from mainland China, Europe, and the U.S., is beginning to diversify. The company highlighted the growing importance of tourists from the Middle East and India as emerging sources of luxury travel demand.
“We are very confident about our brand,” the deputy chairman concluded. “If we stick to our principles…then we will continue to grow at the pace that we want to grow.”
