International hotel brands are doubling down on branded residences, which are increasingly appearing in standalone projects, in addition to their established role as part of a hotel development.
Marriott has launched a new platform to pull together a range of benefits for buyers and owners of its branded residences, around the world. Indian Hotels has just joined the sector, announcing its first Taj branded residences alongside a hotel project in Chennai. And Asian luxury brand Rosewood has just released details of its first standalone residence development, on the Mexican coast.
A growing trend
Branded residences have continued to grow in popularity in recent years. Developers like them, as they can typically provide additional profits, while the cashflow from sales can help fund development of the adjacent hotel. Hotel brands love them, for the fees that sales provide, and the ongoing income from management and providing ancillary services to residents. And buyers continue to line up, keen to acquire a residence that feels like home, yet comes with hotel-like services, available on demand.
One of the luxury brands that has long been in branded residences is Four Seasons. Today, around three quarters of its hotel projects also feature residences. Upcoming hotel and residence developments include sites in the Dominican Republic, Muscat, Cartagena, Istanbul, Jacksonville and Okinawa.
While Marriott has many more projects, its residences play a part in far fewer hotel schemes. But it is branching out more and more into branded residence developments without a hotel element: standalones make up for around a quarter of its residence pipeline. Currently, Marriott has 138 residence locations open, while the group’s pipeline includes a total of 123 projects, with openings across 16 brands from its portfolio. These include Ritz-Carlton branded residences upcoming in Miami, Estero Bay and Tampa; Marriott branded apartments in Dubai and Oman; and W branded homes in Gramado, Brazil.
Opportunities in India
In Chennai, Indian Hotels will take on a 235 room hotel with 123 residences, in a development with a 23 floor block. “This is a very lucrative market segment in India,” said Indian Hotels CEO Puneet Chhatwal, “and showing double-digit growth year-on-year. The company is already in talks to develop other Taj branded residences in as many as eight cities across India.
For Rosewood, its first standalone residences project will be delivered in Los Cabos, Mexico on a substantial coastal site. An initial phase of 144 properties is planned, with villas and custom-designed homes available. A high end luxury project, it will feature a central clubhouse, beach club and sports centre, with Rosewood managing all the amenities. Current Rosewood pipeline projects with residences include Thailand, Beverly Hills, Doha and Dallas.
