The branded residences sector has seen phenomenal growth and there is no sign of it slowing. The number of branded schemes has grown by 195 per cent in the last decade and there are more than 430 branded schemes globally with a combined total of 65,000 units.

A record number of schemes opened this year, with 60 projects delivering more than 9,000 additional branded units across 21 countries. This record is expected to be broken again in 2020 when nearly 70 schemes are due to complete.

This growth is being driven by the hoteliers with hotel-branded schemes accounting for 86 per cent of the completed schemes and 96 per cent of the pipeline supply. Marriot International, whose brands include Ritz-Carlton, St Regis and W, is the market leader and is set to remain so. However Accor is rising fast and has a pipeline equal to Marriott International.

In the Middle East, Emaar Hospitality Group is growing fast with an extensive pipeline across the UAE and wider Middle East under its Address and Vida brands.

The biggest players in 2024 (forecast based on completed and announced pipeline schemes)

Source: Savills Research & Savills International Development Consultancy

Last year, Savills predicted that new lifestyle, non-hotel brands, outside the realm of what has been seen to date, would enter the sector. The prediction has played out with Condé Nast announcing its plans to move into the branded residences marketplace. While the company is best known for its magazines, Condé Nast expanded into hospitality in 2003 with Vogue Cafés and GQ Bars, making residences a natural progression for the global media brand.

The birthplace of branded residences, North America is home to 40 per cent of all schemes. However other regions are growing rapidly. Asia Pacific, led by Thailand and Vietnam, currently has the most schemes in planning and under construction (23 per cent of pipeline), followed by MENA (21 per cent of pipeline), where the UAE and Egypt account for most of the forthcoming supply.

Latin America is a major growth market. The number of schemes in Mexico are due to more than double in the coming years as new projects are set to open in both resort and city locations.

At a city level, coinciding with Expo 2020, Dubai is set to overtake New York as the global branded residences capital by the end of 2019, thanks to a pipeline equal to its current supply of just over 20 schemes. Miami has the third largest number of schemes and will retain its position. In Asia, Phuket is forecast to overtake Bangkok where there is a number of smaller resort schemes in the pipeline.

Top 10 cities by complete and pipeline branded residences schemes

Savills analysis shows that the average premium for branded residences over equivalent non-branded product stands at 35 per cent. This varies significantly by location, brand and operator. In emerging cities, such as Kuala Lumpur, the premium can exceed 70 per cent. On the flipside, in the more mature markets, where location is a greater determinant of value, premiums can be lower.

Further information

Read more Spotlight: Branded Residences 

The future of branded residences