Branded residences are personal homes developed and marketed by hotel brands such as Four Seasons and Marriott, and are increasingly part of many hotel groups’ portfolio. The concept is especially established in the US, where 100 years ago the Sherry-Netherland Hotel in New York first ran its own serviced apartments alongside its hotel.
According to ASAP Business Partner Savills, 62% of city-based hotel residences are located in the US or Canada, where Four Seasons and Ritz-Carlton own 50 residences between them, and only 8% in Europe.
Now in London Four Seasons has refurbished a hotel with residences overlooking Tower Bridge and is about to launch its first standalone residential property development in Mayfair.
Since 2015, the number of hotel operators in the residential property business has increased by 27% and likely to become mainstream in Europe in the next five years.
Location is key, and in cities such as London and Paris, hotel-like concierges are plentiful and often provided by third parties, whereas in cities such as Dubai, where hotel operators are often the only provider of these services, branded residences can be twice price of anything else on the market. Many buyers are international investors, who value assistance throughout the purchase and management from a branded hotel.