A partnership between luxury residences and hospitality brands
Branded residences first evolved through the partnership of luxury residences with hospitality brands, where the brand name of a hotel is licensed for use on the residence.
By marrying residential real estate with brands from other sectors such Armani, Bulgari and Porsche, the added value of a globally-recognised brand being tied to a property is clear. International brands like these bring a dedicated fan-base to the table and offer a major talking point for property developers – even before the property is completed.
Types of branded residences
- Hotel-led developments with integrated residences
- 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
- Personal shopping
- Childcare services
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 residences do not adhere to localised comparables and in many cases ‘re-set’ the market.