Parent brands

The branded residences space has diversified significantly over the past decade, shifting from a market dominated entirely by hotel brands to a combination of hotel and non-hotel or lifestyle brands. In terms of parent groups, Marriott remains comfortably at the top of the rankings, a position it has held since 2002.

However, there have been new entrants into the market as well as expansion of established players both in terms of type of brand and the location of the parent brand.

Accor, for example, ranks fifth by number of complete properties in 2021, up from sixth place in 2020. The company has expanded its presence in the sector significantly over recent years and has a significant pipeline. This growth is expected to push it into second place, behind Marriott, when factoring in pipeline supply.

Non-US brands such as Emaar and Banyan Tree have risen to become global contenders. As more residents of regions outside North America and Europe move up the wealth ladder, there will be increasing demand for branded products which can cater to their needs.

Individual brands

Turning to individual brands, the top three players are The Ritz-Carlton, Four Seasons, and YOO Inspired by Starck (when considering their completed and pipeline schemes). The Ritz-Carlton (a Marriott brand) has the largest pipeline of the top three brands, adding to its existing supply by 64%, demonstrating its commitment to the business model.

Trump properties have been surpassed by the St. Regis brand by Marriott, for the number of completed and pipeline schemes, continuing the decline in dominance for the brand. At its height, in 2000, Trump was the top brand in the sector by number of projects.

Six Senses, a new entrant into the top 10 in 2021, has the strongest pipeline growth for any individual brand at the top of the league table. Over the forecast period to 2026, Six Senses is due to deliver a formidable 233% growth compared to its existing stock of six branded projects.

This growth rate is followed closely by Mandarin Oriental, which has forecast pipeline growth of 214% of its current supply. It should be noted that both brands are growing from a relatively low base of fewer than 10 properties. The majority of brands in the top 10 have 15 or more properties currently in operation.

In contrast to the rest of the top 10, YOO Inspired by Starck and Trump are both expected to add less than 20% of their current supply volumes over the forecast period. However, even with limited pipeline growth rates, neither brand looks likely to drop out of the top 10 in the near term.

_{Read the articles within Spotlight: Branded Residences below.}

Further information

Global Residential Development Consultancy