Branded residences, one of many fastest-growing sectors in hospitality, will take heart 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 Dwelling. Within the lead as much as the occasion, Jeff Tisdall, Chief Enterprise Officer, Accor One Dwelling and International Head of Combined-Use, Accor, shares his insights on branded residences and the way forward for hospitality.
It has been stated that change occurs slowly, then abruptly. This definitely describes the expansion trajectory of branded residences.
The branded residence sector is without doubt 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 right now. Whereas its origins will 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 worldwide hospitality progress.
The 20th century was a transformational period for the hospitality {industry}. As soon as a luxurious enclave for a privileged few, lodges proliferated into an unlimited universe of choices for every type of vacationers. The Sherry Netherland Lodge in Manhattan opened its doorways in 1927 – the world’s first mixture of residences and lodge suites. This was a harbinger for the hospitality branded residence sector to return – 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 say themselves within the realm of personal residential residing. Owners had been thrilled to have the chance to safe a residential way of life elevated by the providers, 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 drawn to the house. Between 2009 and 2019, the variety of branded residences beneath improvement 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 properties that may be cared for and even rented out whereas not in use. We’ve got additionally noticed the onset of a generational wealth switch amongst excessive web price and ultra-high web price patrons who contemplate actual property as important to their wealth administration methods.
On the identical time, we additionally see branded residences as a pure evolution for profitable hospitality manufacturers. Shopping for a branded residence is the last word expression of name loyalty. There’s sturdy international demand for communities which can 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 number of the most iconic actual property property on the planet. For purchasers, there’s quite a lot of confidence that comes from understanding these identical manufacturers are additionally backing the communities they name dwelling. By coming into this class, manufacturers are offered with an thrilling canvas on which to evolve their model story and envision an thrilling new suite of experiences which can be crafted particularly for owners.
Given the standard profile of branded residence patrons, the sector continues to supply new alternatives, punctuated by modern design. The final a number of years have seen choices from way of life and premium hospitality manufacturers, in addition to high international style and automotive manufacturers, similar to Porsche, Aston Martin, Bugatti, Missoni, Armani, Versace, Fendi, and Bulgari. As a number one international participant, Accor at the moment operates personal residence communities beneath 25 distinctive manufacturers – encompassing luxurious, way of life, premium and midscale segments.
The intersection of way of life manufacturers and personal residences is without doubt one of the most compelling areas of progress proper now. A current instance of recent mixed-use improvement is SO/ Uptown Dubai, the place style and design theater encourage a spectacular set of residence facilities and personal amenities that are unique to residence house owners.
Even so, the luxurious pioneers within the branded residential house, similar to Fairmont and Raffles, proceed to have sturdy attraction. A current standout undertaking is the OWO Residences by Raffles in London, a completely personal and unique residential expertise discreetly built-in with the Raffles London lodge within the former Outdated Battle Workplace. Right this moment, this historic deal with is a masterful achievement of recent 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 lodge model helps to speed up gross sales and considerably improve the economics of lodge funding, given the power of co-located lodges and residences to share providers, in addition to sure facilities, amenities and infrastructure. Business specialists have persistently discovered the typical premium captured by builders licensing international manufacturers for his or her personal residence tasks to exceed 30%. Very often, there’s additionally worth to be added by way of the addition of different modern hospitality merchandise, similar to personal golf equipment, movie star helmed eating places, or a coworking ideas.
The important thing to success is choosing the correct model with an method that emphasizes a custom-made match. This requires ability and care to successfully translate the model’s id to residential areas and personal amenities whereas reflecting native market pursuits. This is the reason, in 2023, we fashioned Accor One Dwelling – an industry-first 360º platform targeted on supporting our companions within the improvement, design, and operation of mixed-use tasks and branded home-owner communities.
Wanting ahead, there’s 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 – changing into much more enriched with thrilling new homeownership experiences for generations to return.
Anne Bleeker
In2 Consulting
+971 56 603 0886
The Bench