More than 60 different players participate in the branded residence sector, with over 100 brands between them
The world’s biggest player in the sector
W Residences Algarve, Portugal
Marriott International is the world’s biggest player in the branded residences sector. With 100 branded residences across 25 countries Marriott International brands represent one in every four operational projects globally. The company leverages 15 of its 30 leading brands for branded residential projects, with Ritz-Carlton, St. Regis and W accounting for nearly 70% of today’s operational developments.
Marriott International’s extensive brand portfolio means it can offer a brand appropriate for every location and project type. The company evaluates the tourist and residential sector of every market it enters to find the most complementary match.
Marriott International’s portfolio of “distinctive” brands, including the Luxury Collection, Edition and W, are tailored to different demographic groups. W, for example, is strong in city and resort markets and resonates with affluent younger buyers. Marriott’s Premium Branded Residences including Marriott, Sheraton and Westin Residences create additional opportunities to diversify the design, services, amenities and pricing offered across a broad residential portfolio.
Marriott International operates all the schemes it brands, ensuring high-quality service that’s consistent with brand values. Resident owners can often participate in a hotel rental program, providing access to a huge market of potential renters.
The company currently has 76 branded residential projects planned or under construction, accounting for 27% of the total branded residence schemes in the global pipeline. Marriott International’s pipeline is increasingly global – today, more than half of its existing branded residential developments are located in the US, compared to just 20% of pipeline projects.
The branded residential projects in Marriott International’s development pipeline would add 18 additional countries. Marriott’s Caribbean and Latin America region is experiencing strong growth with a residential pipeline more than double its current distribution led by markets such as Mexico with new projects in both city and resort destinations.
One of the fastest growing players in branded residences
Mandarin Oriental Residences, Barcelona
Mandarin Oriental has seven completed branded residences schemes across the globe, making them the 12th biggest player in the sector. Schemes are presently operating in the US, UK, Thailand, Turkey, Macau and Taiwan.
Developers working with Mandarin Oriental benefit from a dedicated marketing and operations team. Owners, meanwhile, benefit from extensive service and amenities, as well as access to a worldwide recognition programme. The ratio of onsite staff to residences at Mandarin Oriental properties is particularly high, in some cases reaching one colleague per home.
While the majority of their residences are adjacent to a Mandarin Oriental hotel (co-located), they have some standalone schemes in the pipeline. These include projects on Fifth Avenue in New York and Passeig de Gràcia in Barcelona.
The company’s portfolio of branded residences is expected to more than double in the coming years. Twelve schemes are currently under development, which will see them move into the top ten largest players in the sector. Their pipeline includes future schemes in Russia, Cayman Islands, Spain, Germany and Turkey. The Residences at Mandarin Oriental, Moscow will be the first luxury branded residences serviced by a five-star hotel in the Russian capital.
The media company has plans to enter the sector
Savills International Development Consultancy have been in discussions with media company Condé Nast, who has plans to enter the branded residence market. With brands including Vogue, Vanity Fair, AD, Wired, Tatler and GQ, they have the potential to offer a range of curated living experiences to occupiers.
While the company may be best known for its magazines, Condé Nast expanded into hospitality in 2003 with Vogue Cafés and GQ Bars, making residences a natural progression. Branded residences have been chosen as a good fit for Condé Nast’s global lifestyle media brands, and an opportunity to further diversify outside the company’s core publishing activities.
The company plans to offer spaces that are luxurious, relevant and dynamic. Their brands already offer aspirational content on art, culture, design and fashion. Developments are expected to embody these qualities, which will be a key selling point to developers and buyers.
Condé Nast intends to work alongside developers to approach each space differently, incorporating local materials and architectural styles. Condé Nast will be partnering with premium management and concierge companies to operate their schemes.
Each of the company’s brands offers a distinct IP and signature look, but are also flexible and respond to (and indeed shape) changing consumer preferences. This should resonate with a customer base increasingly seeking a curated, on-trend, living experience.
Read the articles within Spotlight: Branded Residences below.