Business management & development A residence bearing the name of Accor, Four
Seasons, Mandarin Oriental, Rosewood, Raffles or another top-end brand brings status to the owner, promises potential for a significant return on investment, and offers high-end ancillary services that make for a hassle-free secondary residence, as well as the option to generate income by subletting the property as part of a rental pool. “For developers, there is the consideration of
securing a cash flow from off-plan sales to fund the project,” says Sophie Perret, managing director of global hospitality consulting firm HVS London. “This might at points be a make or break to secure a deal. For the brand, this is also an attractive way to diversify income through these units. So, provided the brand has expertise in how to manage this structure, this is a win-win situation.”
Gearing up for growth Over the past 10 years, the sector has grown by more than 150%, and the pipeline of future branded residences remains strong, according to forecasts by Savills. Today, there are some 640 schemes, accounting for nearly 100,000 units, operating across every continent. This could grow to 1100 schemes by 2027, nearly doubling the current supply levels. Furthermore, the sector is evolving from a market dominated entirely by hotel brands to comprise a diverse combination of hotel and non-hotel brands. “Some of the key changes I believe are the increased
appetite from brands for this concept, to the extent that these can sometimes be standalone structures, even,” says Perret. “There is also increasingly an appetite for this model in urban locations.” “Finally, I would say the flexibility in terms of the unit offering is increasing, especially post-pandemic, where there is the need to accommodate, for example, multi- generational families, or an element of work within the holiday for those that mix remote work and family holidays,” she adds. “So, units designed with lock-off
options that allow the combination of two or more rooms into a family unit are increasingly preferred.” As more players enter the branded residences
market, individual brands must differentiate themselves in order to attract buyers. A commitment to design and planning is essential to the success of standalone branded residences, as buyers appreciate knowing that the brand and the developer have worked closely together to ensure well-structured projects that deliver exceptional hospitality service. Leading brands and developers also pay close attention to the demand for multi-functional spaces, wellness, amenities, outdoor spaces, enhanced home systems and other factors that draw buyers to future residences. High standards of service and fit-out, a dedicated concierge and reservation team, an exhaustive list of services – laundry, dry-cleaning, butler service, private chef, private parking, private spa/gym and more bespoke offerings – should all come as part of the standard package. Owners should also expect proper integration of the residential units under rental pool into the hotel reservation system, when appropriate, as well as transparency around management fees.
Above: Accor has developed branded residences for over two decades, under brands such as Raffl es.
Below: A balcony view from an apartment in the Raffl es Back Bay development in the US city of Boston.
Opposite: The SO/ Uptown Dubai by Accor offers branded residences, hotel suites and offi ces.
Hotel Management International /
www.hmi-online.com
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Rockwell Group / The Architectural Team
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