Different locations necessitate different development solutions which, in turn, must take into account the evolution of buyer preferences. The sector for branded residences has historically been led by luxury hotel brands, and remains as such, though other chains are taking increasing market share as the supply of branded residences expands.

These chain scales, as classified by Smith Travel Research (STR), allow brands to differentiate themselves and be competitive in securing management contracts in varying market contexts.

By the end of the pipeline period, luxury hotel brands will account for 54% of total supply – down from 55% today. The growth of the upper-upscale and upscale brands, each increasing their share of total supply by 1.5% over the forecast period, will continue to allow the sector to appeal to a wider buyer base in more varied markets.

As emerging markets and resort locations are driving larger amounts of pipeline growth and investment in the sector, branded residences in these locations are built to high specification to meet the rising demand from growing populations of HNWIs and second home buyers who may be looking to spend longer periods in secondary residences due to the ability to work remotely, allowing these residences to be true second homes.

There is an increasing variety of brands in the non-hotel segment, even if the growth of the segment is slower than other chain scales as the total supply increases over the pipeline period. From the established players in design, fashion, golf, and wealth brands to newcomers from automotive, music, and art brands, such as the recent announcement of Louvre Residences in Abu Dhabi, the growth of non-hotel brands demonstrates that buyers do not appear to be limiting themselves to classic hotel offerings.

Fast-growing economies such as Brazil, United Arab Emirates, and India are leading the table for non-hotel pipeline, with each country forecast to see non-hotel brand scheme growth of more than 70% from current supply levels. The lifestyles offered by these non-hotel brands, and the fact that there are fewer residences in existence, provide the perfect combination for trophy assets for the growing number of wealthy individuals globally.

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

Further information

Global Residential Development Consultancy