_Branded Residences Report | Globally mapped
To build a global picture of branded residences we have looked at some of the industry’s biggest hotel operators including Marriott, Four Seasons, Accor Hotels and many more. Together Marriott, Four Seasons and Accor Hotels represent over half of all hotel branded residences with Marriot alone accounting for three-quarters of these. The map demonstrates the geographical expanse of the concept with hotel branded residences present in over 180 locations across 64 countries globally.
As the concept originated in North America, it is no surprise that this market is the most developed and has the largest presence, accounting for a third of all schemes. However, the Asian market for hotel branded residences has seen strong growth, particularly in Thailand and Indonesia, with Asia now accounting for an estimated 30% of schemes. This trend is set to continue, “Asia is the continent of opportunity: there’s a growing market and rapid urbanisation”, says Muriel Muirden, executive vice president at the architectural firm WATG.
At a more localised level, as a single city, Dubai is where there is the highest concentration of branded residences. With operators such as Kerzner International, The Address, The W, Jumeirah and Bvlgari entering the branded residence marketplace, from resort living on the Palm Jumeriah to urban concepts close to Downtown Dubai and the Financial Centre (DIFC). According to Piers Schmidt, a luxury brand consultant and commentator at The Luxury Consultancy, “the explosion of development in Dubai is down to the fact that developers and promoters have a need to differentiate: you can build it taller, make it revolve and shimmer, but when you get inside an apartment, having a brand gives an advantage.”
One region in which the branded concept is still quite small is Europe, accounting for only 7% of branded residences. In Europe there is “less demand for branded things, period,” according to Schmidt. “Developers are less prone to license a brand to move their real estate [in Europe] because they know their asset has appeal,” he adds. However as residential markets become more competitive Europe may be another area of growth.
Urban living
The branded concept is a predominantly urban concept, with 62% of hotel branded residences in cities as opposed to beach/resort locations. However, this does vary by region. In North America, two-thirds of schemes are in cities whereas in Asia it is much more balanced, with almost half being in resort locations.
As the market continues to expand it is expected that developments are likely to concentrate in urban areas. Across the global economy there is a huge shift towards major urban hubs, for example Aman, the first resort brand, is now moving towards the urban space. This is driven by the less seasonally affected demand in urban centres.