Luxury hotels must have “a point of view” to attract visitors eager for experiences, says André Fu
Travel destinations around the world are grappling with a new type of traveler: a young millennial or Gen Z tourist, hungry for experiences rather than cookie-cutter hotels.
Today’s tourists “are looking for a viewpoint”, explains interior designer André Fu at Fortune Brainstorm Design Conference in Macau on Tuesday. In other words, they look for a specific atmosphere or design philosophy when choosing where to stay or eat.
And, Fu explained, this even extends to the luxury hotel space. “Luxury is not about fabrics. It’s not about marble. It’s about feeling. It’s about connection. It’s about the emotion you feel when you’re in a space,” he said.
“When you feel like it’s a designed space around you, rather than just being a particle in that environment, that sense of resonance is so invaluable,” Fu said. “And I guess that level of connection… is what designers thrive on these days.”
Swire Hotels vice president Toby Smith acknowledged that travel habits were changing. “We’re seeing people extend their trip. They’re on a business trip and may extend their trip by a day or two to really explore the city or location they’re in,” he said. This opens up the possibility of personalized service, for example hotel staff personally escorting a person staying at the Shanghai Upper House through the city’s historic French Concession district.
Fu’s first hotel project was Upper House Hong Kong, a small luxury hotel developed by Swire Hotels, under the umbrella of conglomerate Swire Pacific. The real estate developer is now planning to expand its luxury hotel brand, The Upper House, to several cities in mainland China and East Asia.
The impetus behind the Upper House and its slogan “Houses, not hotels,” Smith explained, was that young tourists “were looking for something a little younger, maybe a little more vibrant, less stuffy, less formal.”
Lucas Schifres for Fortune
Upper House hotels are also small, with the Hong Kong property having just over 100 rooms. “It’s very difficult to offer true customization and true luxury for a property that has well over 100 keys,” Smith said.
In mid-October, Swire Hotels rebranded its upscale House Collective brand “The Upper House” and committed to opening several more properties in the area. The next hotel, Upper House Shenzhen, will open in 2027 and features designs by German architecture firm Büro Ole Scheeren.
Swire will follow Shenzhen with new projects in Xi’an, Tokyo and Bangkok, which will be the brand’s first signature residences in a project designed by Foster + Partners.
Hotels and hospitality are “increasingly competitive,” Smith said. “Building costs are incredibly high, so I think the only way to get value is to build luxury and charge more for it. »
Swire Hotels generated HK$441 million ($56 million) in revenue for the first six months of 2025, a slight year-on-year decline. The company cited a slower-than-expected recovery in Hong Kong’s hotel market and mixed performance in mainland China. In total, Swire Properties generated HK$8.7 billion ($1.1 billion) for the first half. Shares of Swire Properties are up just over 35% for the year so far.
Yet Asian tourism – long dependent on tourists from mainland China, Europe and the United States – was beginning to diversify. On Tuesday, Smith highlighted the Middle East and India as growing sources of luxury tourists.
“We’re very confident in our brand,” Smith said. “If we stick to our principles…then we will continue to grow at the rate we want.” »
