Accor operates 40 brands worldwide, of which 16 are actively engaged in the branded residence space. These include ultra-luxe brands like Raffles and Orient Express, Fairmont and Sofitel in the luxury segment, and a growing portfolio of lifestyle brands such as SO/ and SLS. Thanks to a substantial project pipeline, Accor will grow to become the second biggest player in the sector globally in the coming years.

Flagship developments include the OWO Residences by Raffles in London, Fairmont Residences Century Plaza in Los Angeles which is expected to open late 2020, the forthcoming SLS Dubai Residences expected to handover early 2021, and the upcoming launch of Raffles Boston Back Bay Residences.

Jeff Tisdall, SVP of Development, Residential and Extended Stay at Accor, says, “In many instances residential markets are bouncing back more quickly than the core hospitality sector. For our partners who are developing mixed-use projects, the residential component is playing an increasingly critical role in enabling schemes to move forward with confidence and obtain funding. We’re already starting to see a rebalancing of weighting toward residential as a result.”

Accor’s wide portfolio of brands means it can offer something for every target market. Tisdall adds, “Lifestyle brands are an underserved area of the branded residence space. We currently have six lifestyle brands operating in the branded residence segment, with a pipeline of 18 lifestyle projects. We think there’s also a real opportunity for a midscale lifestyle brand. We’ll be bringing one to the branded residence market in 2021.”

Covid-19 has brought operational challenges to the sector as a whole. Accor has implemented intensified hygiene and prevention measures under a new ‘ALLSAFE’ certification, providing peace of mind for residents and guests alike.

Shared amenities are evolving in response too. “Private facilities are increasingly important. Our new project in Whitehall, London, The OWO Residences by Raffles, will provide residents with seven distinct lounges, a private dining room as well as a finishing room. This enables a resident to host a private event with their own personal chef while being attended to by Raffles staff.”

Accor is well positioned to adapt to change. “We have taken the residential experience and expertise that we’ve acquired over decades with brands like Fairmont and Raffles and extended it across the entire Accor platform to new brands and segments,” says Tisdall. “Brands need to come to life in the shared spaces, and be more than label or badge on the residences. Foremost, though, these are people’s private homes. While services, global ownership benefits and hotel integration obviously are important, a design which respects privacy and creates the feeling of an exclusive oasis is paramount. That hasn’t changed.”

Four Seasons is the single largest individual brand active in the sector today, with more than 40 open and operating properties. Quality of offering characterises Four Seasons, with a focus on the best locations.

Four Seasons manages all the properties that its brand is on, not only front of house services but all aspects of the property management, ensuring the highest quality of service in all aspects of property ownership. The brand is evenly distributed across urban (53%) and resort (47%) destinations, although the larger unit numbers in urban centres means there are majority of homeowners in cities, often occupying as their primary residences.

James Price, Vice President of Residential at Four Seasons says, “An early pioneer in many markets, we’re used to going in and creating a destination. We’re fortunate in having a strength of brand that allows us to do that.

“In the bigger cities we can create differentiated product from what we’ve already got and can add more. Europe is a market where branded residences remain under represented, but finding prime locations in historic city centres is challenging.”

The brand is making a push into standalone properties. Recent openings include the first standalone project for Four Seasons at London’s Twenty Grosvenor Square, while additional standalone properties in Los Angeles, San Francisco, and Marrakesh will open by the end of the year.

“Most people will recognise and understand the value and appeal of a Four Seasons hotel, but Four Seasons Private Residences are now established and recognisable in their own right – we’ve been doing it for over 35 years”, adds Price.

Private Retreats, Four Seasons residential rentals business, benefits both hotel owners and homeowners through diversified rental income, “In the current environment this is especially attractive to guests seeking all the benefits of the hotel but with the private space of a home.”

Covid-19 has accelerated the adoption of technology in property management. Four Seasons launched a tailored app through which residents can chat with their dedicated concierge and procure services, view HOA documents, or book space in the gym.“Staff are still available to do this in person, but allows residents to do it all at a touch of a button”, says Price.

The pandemic could be a catalyst for longer term changes to demand. Price concludes “People’s work patterns are changing, as are the things they are looking for in their living environments. The second home destinations could really benefit, but so too could cities with more demand for ‘lock up and leave’ boltholes. Branded residences can readily serve both.”

IHG has grown its presence in the Branded Residence sector meaningfully in recent years. It now has four luxury brands active in the space, with 16 for-sale residences operating across its Six Senses, Regent, InterContinental, and Kimpton brands.

Each brand has a distinct residences strategy. Ananth Ramchandran, Head of Branded Residential at IHG, explains “We have clearly defined residences offerings that reflect the spirit of the hotel brands and are crafted to optimise returns for the project owner. Each residence aligns with the uniqueness of the destination, whilst balancing distinction and harmony with the hotel.”

With Six Senses for instance, says Ramchandran, “wellness and sustainability are at the heart of Six Senses and remain our highest priority when it comes to operating hotels, resorts and residences. These values combined with innovative design and our passion for pushing boundaries beyond the ordinary resonate with developers, our guests and residence owners, and ignite people’s imagination. In addition to our exotic locations, we are now entering gateway cities such as New York and London. This is a truly exciting time for Six Senses.”

InterContinental, meanwhile, is the world’s largest luxury hotel brand. “InterContinental continues to build on its legacy of pioneering international travel, with the opening of exciting new hotels, such as the architectural wonder, InterContinental Chongqing Raffles City, in both emerging and established destinations around the world”, adds Ramchandran.

Each brand appeals to a distinct demographic or psychographic in different ways. “Kimpton Hotels & Restaurants, IHG’s luxury lifestyle boutique brand is fulfilling international growth ambitions. The recently opened Kimpton Maa-Lai Bangkok, with 362 rooms, including 131 serviced residences, is a great example of how Kimpton is bringing a fresh, new approach through design and a commitment to heartfelt human connections,” says Ramchandran.

IHG now sees branded residences as a key component of its overall luxury growth strategy. “This is a good time to be in the branded residences business. Since December 2019, we’ve had two InterContinental residences launches in Thailand and Vietnam, and both have received tremendous interest. This is testament to the strength of our brands, our guests’ desire to buy into the lifestyle they have come to love, and the growing demand for privacy and seclusion. Branded residences offer that, with the added benefit of access to world-class facilities and amenities.”

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Further information

Global Residential Development Consultancy