Branded residences, one of many fastest-growing sectors in hospitality, will take middle stage at Future Hospitality Summit – FHS World in Dubai (30 September to 2 October 2024), with a devoted, full-day convention led by one of many sector’s main innovatorsAccor One Residing. Within the lead as much as the occasion, Jeff Tisdall, Chief Enterprise Officer, Accor One Residing and International Head of Blended-Use, Accor, shares his insights on branded residences and the way forward for hospitality.
It has been mentioned that change occurs slowly, then unexpectedly. This definitely describes the expansion trajectory of branded residences.
The branded residence sector is likely one of the quickest rising classes within the hospitality {industry}. Savills International Residential Improvement Consultancy expects 1,200 branded residence tasks to be working globally by 2027, from almost 700 in the present day. Whereas its origins could be traced again over the previous century, it’s actually during the last decade that branded residences have matured from a distinct segment idea to a key driver of world hospitality progress.
The 20th century was a transformational period for the hospitality {industry}. As soon as a luxurious enclave for a privileged few, inns proliferated into an unlimited universe of choices for all sorts of vacationers. The Sherry Netherland Lodge in Manhattan opened its doorways in 1927 – the world’s first mixture of residences and resort suites. This was a harbinger for the hospitality branded residence sector to come back – but by 1993, solely 15 branded residences existed.
It wasn’t till the beginning of the 21st century {that a} handful of main international hospitality manufacturers – together with two Accor manufacturers, Fairmont and Raffles – started to claim themselves within the realm of personal residential dwelling. Householders had been thrilled to have the chance to safe a residential life-style elevated by the companies, aesthetics, and facilities of their favourite hospitality manufacturers. Most of those early tasks had been designed for luxurious actual property patrons – and as demand grew, new entrants had been interested in the area. Between 2009 and 2019, the variety of branded residences underneath growth grew by almost 200%. Over the previous 5 years, this momentum has solely gathered steam.
There are a lot of societal and demographic shifts driving this demand, one being a push amongst prosperous dwelling patrons looking for seamless, turnkey second houses that may be cared for and even rented out whereas not in use. Now we have additionally noticed the onset of a generational wealth switch amongst excessive web price and ultra-high web price patrons who take into account actual property as important to their wealth administration methods.
On the similar time, we additionally see branded residences as a pure evolution for profitable hospitality manufacturers. Shopping for a branded residence is the final word expression of brand name loyalty. There’s robust international demand for communities which might be anchored by the comforts and guarantees of a beloved model expertise. Within the case of Accor, we’re lucky that a number of of our manufacturers have been chosen to safeguard a few of the most iconic actual property property on the planet. For purchasers, there may be an excessive amount of confidence that comes from realizing these similar manufacturers are additionally backing the communities they name dwelling. By getting into this class, manufacturers are introduced with an thrilling canvas on which to evolve their model story and envision an thrilling new suite of experiences which might be crafted particularly for owners.
Given the standard profile of branded residence patrons, the sector continues to offer new alternatives, punctuated by progressive design. The final a number of years have seen choices from life-style and premium hospitality manufacturers, in addition to prime international trend and automotive manufacturers, resembling Porsche, Aston Martin, Bugatti, Missoni, Armani, Versace, Fendi, and Bulgari. As a number one international participant, Accor at the moment operates personal residence communities underneath 25 distinctive manufacturers – encompassing luxurious, life-style, premium and midscale segments.
The intersection of life-style manufacturers and personal residences is likely one of the most compelling areas of progress proper now. A current instance of contemporary mixed-use growth is SO/ Uptown Dubai, the place trend and design theater encourage a spectacular set of residence facilities and personal amenities that are unique to residence homeowners.
Even so, the luxurious pioneers within the branded residential area, resembling Fairmont and Raffles, proceed to have robust attraction. A current standout challenge is the OWO Residences by Raffles in London, a completely personal and unique residential expertise discreetly built-in with the Raffles London resort within the former Outdated Struggle Workplace. As we speak, this historic handle is a masterful achievement of contemporary design, with 120 spacious guestrooms and suites, 12 iconic eating places and bars, an immersive spa and 84 Raffles branded residences. This dramatic restoration is a legacy for future generations.
For builders, aligning with a famend resort model helps to speed up gross sales and considerably improve the economics of resort funding, given the power of co-located inns and residences to share companies, in addition to sure facilities, amenities and infrastructure. Trade consultants have constantly discovered the common premium captured by builders licensing international manufacturers for his or her personal residence tasks to exceed 30%. Very often, there may be additionally worth to be added by the addition of different progressive hospitality merchandise, resembling personal golf equipment, celeb helmed eating places, or a coworking ideas.
The important thing to success is deciding on the best model with an strategy that emphasizes a personalized match. This requires talent and care to successfully translate the model’s identification to residential areas and personal amenities whereas reflecting native market pursuits. For this reason, in 2023, we shaped Accor One Residing – an industry-first 360º platform targeted on supporting our companions within the growth, design, and operation of mixed-use tasks and branded house owner communities.
Trying ahead, there may be nonetheless a lot room for acceleration on this sector. We’re assured that branded residences will proceed to be a key driver of hospitality progress – turning into much more enriched with thrilling new homeownership experiences for generations to come back.
Anne Bleeker
In2 Consulting
+971 56 603 0886
The Bench
