Luxury resorts with accompany residences used as luxury villa rentals
Residential developments adjacent to a hotel
Residential developments with hotel management
Stand-alone residential developments with hotel or brand tie-in
What are the buyer benefits of branded residences?
Trust in development quality and delivery
High quality services as amenities available, such as housekeeping and concierge
Building maintenance and management that maintains value
Lock and leave option, with property maintained and serviced in owners absence
Rental pool and investment yield potential to offset maintenance costs
Services and experiences
Increasingly operators are looking at the experiences on offer, as well as the services, as a way of tempting buyers. No longer is concierge, a pool and spa enough. W Hotels have led the way in this arena, offering celebrity-chef restaurants, bars and nightclubs, attracting visitors and locals alike, while Six Senses focuses on health and wellness. Among the most prestigious developments being launched are those by Four Seasons and Aman.
Typical services available in branded residences
Use of hotel amenities
Round-the-clock security built-in
Elevated status on hotel loyalty schemes
The full range of concierge services
Spa and salon services
In-residence dining and catering
Price premiums of branded residences
The ultra-luxury condominium market is performing strongly, with the hotel brands attached to projects acting as a guarantee for high levels of service, quality and ongoing management and oversight, which adds a lot of value for buyers.
It is precisely these value-adds that contribute to the price premium seen in the market, generally in the region of 30-40% over comparable developments, but which also add to the strong resale values available.
Price premiums are certainly location driven between different global destinations and also within particular locations within cities. In many cases branded residence do not adhere to localised comparables and in many cases ‘re-set’ the market.
The majority of branded residences are urban concepts. In North America two-thirds of developments are located in cities, with New York and Miami favoured heavily, while in Asia there is even split between cities and resorts. While already accounting for some 30% of all developments, Asia is an area of real growth opportunity, with an increasing market and a healthy project pipeline.
The US is the largest market by far currently, while outside the US the UAE, Mexico, Indonesia and China have the largest development pipelines. The search for service, security and quality will continue to drive demand for branded residences. Brands alone will no longer command price premiums in saturated markets, with emerging markets being the growth areas and new brands entering the segment will continue to give hoteliers a run for their money.