The Asia market has seen unprecedented growth in recent years, and shows no signs of slowing down anytime soon. This has meant that the region is a solid choice for investors and developers, with luxury destination resorts and hotels being the order of the day for the discerning traveler who chooses Asia for its incredible culture and natural beauty. However, a new wave of hoteliers and brands that have previously not been present in the area have their sights set on Asia – affordable luxury hotels. Perhaps more associated with North America and Europe than the Orient, popular hotel brands such as Dutch group CitizenM and UK chain Yotel are planning to make moves into the Asian market.
The draw of Asia is obvious – a booming tourism industry, accessible regional flights and the prevalence of transport and economic hubs means that the region is fast becoming the haunt of travelers who are seeking luxury accommodations at a lower cost. Yotel is known for its youthful yet plush hotels, often located in bustling cities and close to airports, that appeal to millennial travelers, while CitizenM offer affordable boutique hotels in trendy urban centres such as Shoreditch in London. This model bodes well for Asia, especially given their contemporary designs that fit into any context. CitizenM has three sites in Asia lined up, with their first property opening recently in Taipei, and a further to set to launch in Shanghai and Kuala Lumpur in 2018. Yotel, for its part, will bring its “smart cabins” to Singapore in the near future, with one property opening on Orchard Road soon and another one planned for the Changi airport in 2019. Affordable luxury is one of the fastest growing hotel sectors as the demand for cheaper hotel stays increases, especially when charged with competition from accommodating sharing sites like AirBnB.