Indian household spending on experiences is forecast to grow faster than expenditure on physical goods between 2025 and 2030, according to a new report from real estate services and investment firm CBRE.
The report projects that spending on recreation, culture, restaurants, hotels and travel will increase at a compound annual growth rate of 10.3 percent over the period. Spending on physical goods is expected to grow at a lower rate of 9.1 percent.
For businesses working across visitor attractions, hospitality, retail destinations, brand activations and leisure development, the figures point to a significant change in consumer priorities. India’s growing middle class, rising disposable income and younger demographic profile are creating stronger demand for places and services that offer social value, personal identity and memorable participation.
The shift has also been shaped by the longer-term effects of the pandemic, which created pent-up demand for travel, dining, leisure and cultural activity. As spending patterns mature, the experience economy is becoming an increasingly important area for investors and operators.
Hotels Lead Projected Growth
Within India’s experience market, hotel accommodation is expected to record the strongest growth, with CBRE forecasting a 10.6 percent compound annual growth rate through 2030.
This has clear implications for destination development. Hotels are no longer being viewed only as support infrastructure for business and leisure travel. They are increasingly part of the experience offer itself, especially when connected to local culture, wellness, food and beverage, events, design and digital convenience.
Generation Z is identified as a central demand driver. Born between 1997 and 2012, this group is now becoming financially independent and is expected to increase spending faster than any other living generation across Asia-Pacific.
CBRE highlights that younger travellers are seeking visually distinctive design, active communal areas, wellness provision and smooth technology. For operators, this means hospitality assets must work harder as social spaces, content settings and lifestyle-led venues, not simply as places to stay.
Lifestyle Hotels Offer Investor Potential
CBRE identifies lifestyle hotels as a key format for responding to this demand. The report describes them as properties that combine local design character with the loyalty systems and distribution networks of major hotel groups.
For developers and investors, this model can be attractive because it offers a way to reposition existing assets rather than depend only on new construction. CBRE notes that lifestyle hotel supply across the region is projected to grow at a 10 percent compound annual growth rate through 2030, faster than the wider hotel market.
Upscale lifestyle hotels are already reported to achieve a 13 percent revenue per available room premium compared with traditional hotels, despite often having smaller rooms. This suggests that design, communal programming and brand positioning can support stronger commercial performance.
India’s relatively low supply of lifestyle hotels also points to a near-term market gap. While Singapore and Hong Kong already have more established sectors, India appears to offer significant room for growth.
Conversion Opportunities For Existing Assets
Rising land and construction costs are also shifting hotel investment towards the conversion of older, unbranded properties. This is particularly relevant for owners seeking more efficient routes to higher asset value.
CBRE reports that hotel transactions under $100m increased from 31 percent of total Asia-Pacific hotel investment volume in 2020 to 42 percent in 2025. Independent hotels suitable for repositioning accounted for around 30 percent of traded assets.
For the wider visitor experience sector, India’s projected growth offers a clear message. Operators that combine hospitality, culture, wellness, technology and locally rooted design are likely to be best placed to capture the next phase of experience-led spending.
