As travel habits shift and remote work unlocks new mobility, hotel investors are finding that smaller markets want a bigger experience. It seems that today’s guests aren’t just looking for a bed; they’re looking for atmosphere, design and a sense of place. All told, they’re looking for an experience – and they’re looking for it whether they’re checking into a hotel in Brooklyn or Boise.
This experiential shift is largely driven by a demographic shift, noted Jeremy Gilston, vice president of Woodworth Core Group.
“There’s a new age of corporate and leisure travelers,” he explained. “They’re millennials. They’re experience-driven travelers 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 travelers 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,” said 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,” said Diana Plazas-Trowbridge, chief lodging product officer at Marriott for the U.S. and Canada. “While five to 10 years ago, travelers 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 said. “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 centers.”
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 added.
Of course, digital nomads and younger travelers 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 added.
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 noted.
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