With more wealthy individuals arising across the globe, luxury hotel developers have begun to seek new avenues to appeal to their evolving needs. The concept of branded residences has been around for nearly a century in the west, but it’s a newer phenomenon in the Asia-Pacific region.
One international consultancy has studied the trend. Savills International Development Consultancy recently released a report with its director Riyan Itani commenting, “Globally-mobile, brand conscious, wealthy individuals are attracted by quality design, security and the level of service branded residences offer,” further adding, “For hotel operators, adding a residential component can improve income streams with royalty fees from sales in the early stages and a more diversified hospitality inventory, while also allowing them to be more competitive when pitching for new projects. Developers, meanwhile, have come to recognise the value-add of a brand in a competitive global marketplace.”
The residences are a point of differentiation in a competitive market, Itani states, “Last year, we predicted that new lifestyle, non-hotel brands, outside the realm of what has been seen to date, would enter the sector. Our prediction has played out: media company Condé Nast has plans to move into the branded residence sector. This, together with rapidly rising participation by hoteliers including Hyatt, Hilton and Accor underscores the depth of the sector’s potential in the years to come.”
