Branded residences look to luxury, larger units

The “phenomenal” growth of branded residences in the last 10 years has proved “a real driver of not only luxury hospitality, but now increasingly mid-scale premium and of course ultra luxury,” according to Jeff Tisdall, chief business officer, Accor One Living. From being largely a “classic luxury play,” Tisdall believes that the sector has deepened and matured thanks to the “ability of developers and operators to find brands to reach new segments, new demographics, new psychographics.”

At the luxury end of the market, Adelina Wong Ettelson, global head of residences marketing, Mandarin Oriental Hotel Group, suggests that changes in how “ultra-high net worth individuals are experiencing their lifestyle and how they wish to live,” particularly post-pandemic, have fostered a need for new guest options. “People are expecting experiences, and what better brand can provide you with an experience than a hospitality brand?” she says. “People understand how they could actually live in a brand like that.”

Wong Ettelson also considers that in an environment of elevated competition, “developers are looking for an edge… and we give developers a reason, a story to tell, which makes a big difference. They can really use that to elevate their product.”

Size Trends

Jake Pinsof, senior director, global residential development, Rosewood Hotel Group, echoes the sense that consumer demand has shaped the direction of the sector.  “I think consumers are looking for larger, more premium units in our projects, and they're also really looking for this service lifestyle living.” He explains that the group has a standalone residential project coming up in Beverly Hills, slated to open at the end of the year, where each unit will average 4,000 square feet.

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