Business management & development Get ready for
another boom
The concept of branded residences has existed for more than a century but there is currently a surge in interest among investors who are looking at this highly resilient sector and its potential for new developments across the world. Rico Picenoni, head of global residential development consultancy at Savills, and Sophie Perret, managing director of HVS London, talk to Jim Banks about why and where the sector will blossom.
W
ealthy individuals who lack the time or the desire to look after an expensive property are increasingly turning to experts in hospitality to provide them with residences around the world that come with many of the services one would expect from a luxury hotel. This market for branded residences – homes that bear the brand of an exclusive hospitality operator but are private houses or apartments – is set to continue booming. The idea was first born in the 1920s, with the establishment of the iconic Sherry-Netherland hotel on Fifth Avenue in New York, which sold 165 luxurious apartments that all came with the services of a five-star hotel. The market really took off in the 1980s, particularly after the opening of Four Seasons Boston, which currently offers 90 luxury condo apartments, as well as its 273 guest rooms. In the intervening years, many more brands have rushed to enter the market, and new entrants continue to look for their niche. According to research by estate agents Savills, cities such as London, Istanbul and Montenegro, as well as many other destinations around the world, are forecasting growth in the development of branded residences, and real-estate investors with an affinity for beds – on both the residential and hospitality sides – are increasingly curious about this asset class. “The main driver is the compelling value proposition branded residences offer to all stakeholders,” says Rico Picenoni, head of global residential development consultancy at Savills. “It is the trust and confidence of purchasers in a premium product, developed and sold at an accelerated sales pace and for a premium, that carries the licence of a brand seeking to differentiate itself and connect in a profound way with its loyal customers.”
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Hotel Management International /
www.hmi-online.com Hotel Management International /
www.hmi-online.com
Accor
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