In the wake of the pandemic, people’s needs for their homes have shifted dramatically compared to 2019. People continue to spend a larger share of their time at home, especially as hybrid work continues to be a driving trend for the workforce. Branded residences are quickly adapting to these new needs. “This means more personalised, spacious, and private accommodations, with both indoor and outdoor areas, in which they can dedicate different spaces to working, relaxing, visiting, etc.,” says Brad Berry, Vice President, Global Residential Development for Rosewood.

He continues, “Buyers want the convenience and access that modern amenities and services afford but are at the same time cognizant of, and invested in, the impact their lifestyle has on the surrounding environment. They are looking for a home that elevates their everyday in a way that is socially and environmentally responsible. I believe that the need for product that strikes this balance will only continue to grow.”

No discussion of the pandemic would be complete without alluding to the ever-increasing importance of health and wellness post-Covid. With the stresses and pressures of everyday life, Jonathan Tomlinson, Senior Vice President, Private Homes, Kerzner International, has found that travellers increasingly want to “spend their time away recalibrating, focusing on their wellness, and finding balance. The brand offers both bespoke programmes such as tailored nutritional menus, fitness schedules, targeted spa treatments, stress-relieving activities along with a performance-focused brand, SIRO, which puts fitness and wellbeing at the core of the residential experience.”

James Price, Vice President, Residential, EMEA, Four Seasons Hotels and Resorts, adds, “To harness the power of sustainability and innovation, the experience begins at the design phase and goes far beyond the obvious health and wellbeing inclusions such as fitness centres and pools. Also, through strong partnership with our development partners, architects, sustainability consultants, and interior designers, we can ensure that design standards are met across new projects while also reducing the impact on the planet, optimising space planning and offering amenities and home features intended to encourage healthy lifestyles, relaxation, and connection.” The integration of wellness across all elements of the design and operation of a scheme can provide residents with the assurances that their health and wellbeing is integral to their experience and lifestyle within their branded residence and the community.

As the importance of the home continues to grow, so too does the allure of entering and expanding within the branded residence space. Though non-hotel brands, from fashion to automotive industries, are growing within the supply of schemes, luxury hotel brands continue to dominate the sector. As competition increases, so too will brand efforts to differentiate themselves in an increasingly crowded space.

Penny Trinh, Senior Director, Residential Development, Asia Pacific for Marriott International says, “Today’s branded residence consumers have the ability to purchase anything in life; Marriott’s hospitality roots and 20 years’ experience in operating branded residences puts us in a unique position to really understand the lifestyle our homebuyers want and what inspires them. As a result, we can provide genuine care and deeply personable service which enables us to tailor richer and more memorable experiences for our residents.

“All residential touchpoints are thoughtfully considered to deliver and support the brand positioning whilst capturing the essence of its locale. The brands are brought to life through exceptional levels of designs and personalised attention, refined food and beverage offerings, and innovative programming.” It is these details which differentiate brands from each other and allow residents to feel that they are being provided with the full branded experience.

While the sector is diversifying across brands, it is also diversifying around the world. With wealth generation in different regions and an increasingly internationally mobile customer base, brands are taking notice. Alexandra Yao, Vice President Global Branded Residences, Luxury & Lifestyle at IHG says, “We’re seeing an equal demand in the branded residential space globally with many of our residents having multiple international home bases. IHG is noticing a strong demand for branded residences across our luxury and lifestyle portfolio which is driven by the desire to live a hotel lifestyle 24/7, especially with the work-from-home shift as a result of the pandemic.” As these trends continue, the branded residences sector will only continue to attract new and returning buyers.

Jeff Tisdall, Senior Vice President Development, Residential & Extended Stay at Accor adds, “We expect the category to continue to evolve rapidly. Technology will be a big driver of this change as the urgent need and demand for environmentally responsible housing accelerates. Service technology will also be a big part of the story, and we are working hard to expand and fully integrate our residential platforms with our loyalty, recognition and reservations systems, enabling Accor and Ennismore to recognise the VIP status of our residence owners wherever their travels take them. The operating model will also mature over the next five years. Developers and residence buyers alike are increasingly seeking turnkey solutions, and we see this benefitting Accor given our commitment to every phase in the life cycle of branded residential projects.”

Brands and developers recognise that buyers are looking for product where they can spend several weeks each year and can not worry that the property will be well-looked-after in their absence and will be ready for them – kitted out to their specifications – upon their return.

As for where the sector is headed over the near term, brands are unified in their positive outlook and perspective for the future. Adelina Wong Ettelson, Global Head of Residences Marketing from Mandarin Oriental states, “The branded residences sector will remain in demand and see growth due to the continued need of adaptability, flexibility, privacy, etc. Buyers who seek hassle-free living will pursue options such as fully managed branded residences, especially in global hotspots in the major cities.”

There are also key destinations to watch: “While it may be difficult to picture what urban life will look like in a post-pandemic world, we have no doubt that urban city centres like London, Hong Kong, and New York will bounce back, as they always do, with a unique opportunity to transform and come back stronger. Innovation, change, and growth are often born from challenging times,” says Wong Ettelson.

Jonathan Wingo, Global Head of Real Estate & Residential Programs, Hilton, agrees, “Both near- and mid-term, South East Asia and North America are on my radar. In South East Asia, it is due to the rapid adoption of models such as rental program products as second homes and investments. Similarly, the resurgence in North America is driven by an opportunity created by the housing shortage coupled with the unprecedented movements of populations (and wealth) to new areas beyond the established gateway cities.” Going forward, there will continue to be growth in the key global cities as well as brands forging new paths in emerging locations.

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

Further information

Global Residential Development Consultancy