This experiential shift is largely driven by a demographic shift, notes Jeremy R. Gilston, vice president of Woodworth Core Group.

“There’s a new age of corporate and leisure travellers,” he explains. “They’re millennials. They’re experience-driven travellers who prioritize living like a local and are social media focused, meaning they’re more visual and design-oriented. This applies to major gateway cities, as well as secondary and tertiary markets.”

The preferences of millennials and younger travellers are starting to dominate the demand curve. This cohort is experience-first, brand-loyal and design-aware, and they’re not afraid to post about it. They want hotels that feel social, local and shareable, even if they’re only in town for a wedding or working remotely for a week.

The work-from-anywhere culture is bolstering that spend – and not just from millennials. As of 2024, there are an estimated 40 million digital nomads worldwide, with 18.1 million hailing from the United States. This is a significant increase from previous years, notes digital nomad service provider Savvy Nomad.

These trends are giving rise to new travel patterns and new opportunities for lifestyle-focused select-service products in markets that would’ve never supported them a cycle ago. Today’s opportunity lies in reimagining what “quality” looks like outside of traditional Class A cities. This may entail high-speed Wi-Fi, activated lobbies, curated design elements, and modest food and beverage offerings.

But here’s the rub: investors and developers must deliver this without overbuilding, overspending or overshooting the market.

“Guests today seek experiential travel now more than ever, and they want it to feel authentic while still appearing like a good value,” says Michael Woodward, executive vice president & chief growth officer of HVMG. “This creates a juggling act for owners and developers.”

Blending work, leisure and local

Communal spaces that foster both connection and productivity have become lifestyle necessities in many hotels today.

“In recent years, we have seen more increased guest interest in larger public areas or gathering spaces,” says Diana Plazas-Trowbridge, chief lodging product officer at Marriott for the U.S. and Canada. “While five to 10 years ago, travellers may not have sought out working spaces in their hotels, we’re seeing guest needs change as travel purposes blend and the trend of remote work continues.”

This has led some Marriott brands like Sheraton Hotels & Resorts to design expansive gathering areas in the lobby, complete with co-working spots and social areas that cater to the brand’s target guest.

David McCullough, principal landscape architect at McCullough Landscape Architecture, notes working and socializing is no longer confined to the lobby, business centre or even the hotel room. Rather, all the world’s an office.

“We’re seeing a push to blur the line between indoors and out with seamless transitions, such as large sliding doors or glass panels,” he says. “These outdoor spaces – particularly those that allow for quiet work calls or informal meetings – have become especially important for guests seeking an alternative to typical hotel business centres.”

This increasing focus on biophilic design has created a new list of “must-have” elements for mid-tier properties. They include climate-appropriate trees that offer dappled shade, weather-resistant furniture in neutral tones, and thoughtfully designed entrances and poolside areas.

“These timeless, low-maintenance elements set the tone for guest comfort and authenticity,” McCullough adds.

Of course, digital nomads and younger travellers aren’t all work and no play. Quite the opposite. They’re drawn to hotels that support the work-play life balance they strive so hard to achieve. Andrew Harp, brand leader for Tru by Hilton notes his brand is embracing the “play” element by integrating game zones that feature a curated mix of large-format table and board games. They also feature custom mural walls that celebrate the local culture and character – another lifestyle detail that resonates strongly with this demographic.

“Murals can spotlight the local community and attractions guests can explore during their stay,” Harp adds.

Situated near the elevator lobby on the ground floor of each Tru location is the Truly Local Wall, which empowers the brand’s on-property team members to showcase the best spots to eat and enjoy in the area. The chain also offers local fare in its 24/7 Eat. & Sip. Market that guests can purchase and take home.

“Tru by Hilton has always leaned into local since its inception in 2016 and continues to do so today,” Harp notes.

From aesthetics to amenities

When it comes to design, Joris Angevaare, partner at HBA International says it’s better to focus on authenticity (and what the budget allows) than to shoot for the moon in middle markets.

“Previous design iterations would try to emulate grand hotels from top-tier locations on much lower budgets, usually resulting in spaces that felt inauthentic or cheap,” he says. “Today’s traveler is more knowledgeable, more discerning and with far more travel experience.”

Instead of imitating luxury, Angevaare advises creating distinct, experience-driven environments that feel genuine and well considered.

“Low-cost imitations of high-end materials tend to expose their shortcomings, even to the untrained eye,” he continues. “It’s better to differentiate.”

This starts with getting the fundamentals right, then adding little touches that surprise and delight. That might mean using bold graphics or prints to create unexpected, memorable moments. Lighting is another powerful tool that can be used to “improve drama,” Angevaare adds, allowing spaces to seamlessly transition from day to night.

HBA applied this approach when redesigning a hotel pool deck, opting for pink-stained timber instead of traditional wood or tile finishes. The pool itself was lined with patterned tiles featuring synchronized swimmers, which created a playful, distinctive twist on the standard blue.

“These small touches generated strong guest reactions without major cost implications,” he says.

Part of nailing the fundamentals is delivering on the essential promise of every hotel: a good night’s sleep.

“When it comes to the ‘must-haves,’ even with tight budgets, every hotel – regardless of quality level – should focus on this,” says Alan Benjamin, president of Benjamin West.

Once that is in place, hotels can layer in the extra elements that enhance the guest experience.

“It is important to remember that no matter how impressive the avant-garde lighting or the custom artwork may be, if the bed is not comfortable, if the hot water is not reliable, if there is no proper blackout and if the HVAC is poor, the guest will not return,” he continues. “This holds true from one-star hotels to five-star properties.”

Matching lifestyle to market

Once the fundamentals are in place, the next step is identifying which lifestyle elements deliver the most impact for the least capital.

“A common pitfall is the ambition to deliver luxury-level experiences on a mid-tier budget,” Angevaare says. “This very quickly betrays itself and most typically falls short of expectations.”

Instead, prioritize the items that truly impact guest satisfaction and operational efficiency.

“These are the touchpoints that matter most to guests and are often undervalued in the initial planning,” he continues. “Developers frequently allocate too much budget to features like oversized rooms or high-end bathroom fixtures, which don’t necessarily align with guest expectations or generate a return in mid-tier markets.”

So, what does align with guest expectations and generate a return?

Only research will tell, notes Plazas-Trowbridge.

“We work closely with our developers and investors to assess the market needs and type of guest who is traveling to the area,” she says. “We want to make sure that every element of the hotel is meticulously designed to meet the needs of both the location and guest purpose, while maintaining the brand’s promise and positioning.”

There are three targets that Plazas-Trowbridge aims to hit when exploring a hotel opportunity. They include a holistic approach to design that balances aesthetics, operational efficiency and guest experience.

“They should all be equal parts of the equation,” she continues. “One does not have to be sacrificed for the sake of another.”

From there, it boils down to knowing your audience and tailoring the experience to distinct traveller types. This mindset recognizes that not every brand needs to be everything to everyone.

Finally, operational impact must be considered, for both guests and associates. When evaluating space efficiency and cost allocation, owners should keep in mind how design choices affect day-to-day operations.

When it all falls in place, Marriott can then identify which design and programming elements are worth investing in for secondary markets, and which ones might offer less ROI in more cost-sensitive environments.

StudioRes, for example, is designed for long-term travellers seeking comfort and modern style, featuring an all-suites prototype with studio-style rooms that include a lounging area and full kitchen. Meanwhile, a SpringHill Suites or Residence Inn outside an urban centre may feature a bar when local options are limited. By contrast, Moxy Hotels cater to social travellers, so they offer vibrant communal spaces, a combined bar and check-in experience and compact, flexible rooms, all supported by a lean staffing model that appeals to both guests and developers.

Woodward agrees that relying on property research and not hubris is the way to deliver customized products and experiences that help hotels outperform the market. The good news? This strategy can be adopted with any brand. In any category. Situated in any market. Regardless of guest profile.

“One can create a lifestyle product in any segment,” he says. “To set a project apart from the competition, it is vital to know what the customer wants, what they can currently get, and what they are willing to pay for those services and amenities. A lifestyle brand does not have be luxury to be successful. It’s more important to have a product that makes sense to the guests at a price point they’re willing to pay.”

By Nellie Day