lifestyle hotels in australia- a time to shine.

First things first, what is a lifestyle hotel? And can we expect them to generate a price premium vs. their more traditional counterparts?

It’s a rare week in hotel investment circles (at least here in Oz) when the Ace Hotel Sydney and the 25hours Sydney Paddington hit the market for sale within days of each other! Two legendary brands, one city, and two vastly different neighborhoods. So our question is: what’s the deal and is now the right time for these two important lifestyle assets to test the market? 

Today, Ace remains one of the few independent lifestyle brands and operators globally, with nine hotels (the Ace Downtown L.A. closed in late 2023). The brand started back in 1999 when the founders reported having “transformed a Seattle halfway house into an affordable hotel that would appeal to the creative class”. 

When it opened in May 2022, Ace Hotel Sydney was the brand’s first hotel in the Southern Hemisphere. Originating from Europe in 2005, 25hours is a bespoke brand that made a name for itself in some of Germany’s coolest cities – particularly in Berlin where it remains the centerpiece of the iconic Bikini Berlin precinct. In 2016, 25hours sold a 30% stake to Accor and the brand now forms part of the group’s lifestyle joint venture with Ennismore. 

So, what are the hallmarks of a true lifestyle hotel and do these two high-profile examples hit the mark?  Let’s dive into some observations and see for ourselves.