Adjacent spaces

Marriott builds on branded residences

Marriott International has signed an agreement with Masterise Homes to develop a dual-branded residential and officetel project in Ho Chi Minh City.

The deal illustrated the growing enthusiasm for branded residences in the sector.

The site was due to open in 2024.

Savills reported that the agreement marked the largest hotel-branded residential project announced to date worldwide, with close to 4,200 residential and officetel units. The project was anticipated to include branded units from two Marriott International brands – JW Marriott and Marriott Hotels.

“We are delighted to work with Masterise Homes to introduce a premium offering for potential homeowners in Vietnam seeking options affiliated with our globally respected brands,” said Paul Foskey, CDO, Asia Pacific for Marriott International. “The signing underscores the strong appeal of the branded residences segment, especially within the Asia Pacific region.”

“Masterise Homes has developed renowned properties in Vietnam for over six years and solidified its position as an industry leader with its focus on building a real estate ecosystem with premier international standards,” said Jason Turnbull, deputy managing director and CFO, Masterise Homes. “Marriott International’s commitment to operational excellence will help bring world-class standards to residents of this dynamic new project.”

Earlier this year Accor sought to get further value from its branded residences, when it launched a new Apartments and Villas portfolio, bringing together its extended-stay hotel brands, branded private residences and Onefinestay brand.

The site includes more than 50,000 apartments, villas and chalets, in over 350 destinations.

The group said: “The Covid-19 crisis has transformed the way we live, work and travel. Branded Residences, which typically combine private home ownership with luxury branding and a comprehensive menu of hotel and residential services, have proven to be very resilient, with an increasingly diverse pipeline and record growth. In 10 years the sector has grown by 170% and despite a difficult context, 2020 should be another record year with the opening of more than 100 additional projects, according to the Savills 2020 Spotlight on Branded Residences.

”We see increasing demand for residentially designed short term rental accommodations, as consumers seek out accommodations which enable more privacy and self-sufficiency and include features like extra living space and generous outdoor space", said Riyan Itani, head of Savills International Development Consultancy.

According to Savills International Development Consultancy, a third of global markets have reported increased interest from buyers looking to expand their primary residence. This growing desire for space, coupled with the increase in working from home, could give a boost to resort projects.

Accor currently operates 30 branded residence projects globally, with another 70 under development. This growth has been particularly pronounced in the emerging lifestyle branded segment. Accor currently operates six lifestyle branded projects with another 18 under development.

In many instances, purchasers of branded residences elect to make their homes available through a managed rental programme. Participating homeowners will now see their homes distributed through the new Apartments & Villas website.

Jeff Tisdall, SVP, development, residential and extended stay, Accor, said: “The launch of the website demonstrates our ambition to develop offers and solutions tailored to the extended stay hotel segment," said"The launch of apartmentsandvillas.accor.com is an important milestone for our investment partners, guests and private residence owners, and further reinforces Accor's leadership position in extended stay hotel and branded residence segments”.

Yassine Hachem, VP, guest digital product, added: “Apartments & Villas site reflects our ongoing commitment to innovation as consumer travel needs evolve, and allows all of our clients to discover an incredible collection of accommodations around the world on one digital platform, as well as to live an exceptional travel experience: the space, comfort and privacy of a home for a weekend, a vacation or working in a new setting, allied to the convenience of hotel services from Accor brands and to the best of loyalty advantages.”

 

Insight: There’s much to enjoy about branded residences and the hotel sector had been showing its appreciation ahead of the pandemic. Key to the delight - and something which has been exacerbated by the pandemic - was the ability of branded residences to deliver cash for development. It doesn’t matter how much a hotel guest enjoys a brand, other than during the 1980s in the Costa de Sol, they’re not going to pay to stay in it before it’s been built.

And it doesn’t end there. Much as many of us are hard pressed to remember what eating out feels like, branded residences also provide hotels’ F&B and other services, such as spas, with a healthy income.

Adding to the intrigue is Accor’s move. Hotels have long enabled owners of branded residences to rent them out when they were absent, but they have’t gone overboard in promoting this to possible renters and they have’t put it into the minds of those renters as, say, an alternative to Airbnb. Cash and a competitive advantage? Delightful.