Profitability, Demand Make These Properties Attractive With Less Risk
Hotel News Now
Summary:
Marriott International and Hilton are capitalizing on the growing demand for hotel-like homes by expanding into the unique segment of hotel-branded residential developments without the hotel component. Traditional sales of condo-style branded residences that are part of luxury hotel developments have driven project funding and appealed to investors in vacation homes and international real estate. Stand-alone branded residences, without the hotel, are becoming popular among luxury travelers who seek the benefits of a luxury hotel brand without the risks of hotel development. Marriott, with 128 branded residential developments globally, has 17% that are stand-alone, and Hilton is about to launch its first stand-alone private residence project. Stand-alone branded residences offer private homeowners luxury amenities like concierge services and security. However, these stand-alone residences are intended for sale, not for hotel rental use, as hotels still cater to their loyal customer bases co-located with hotels.
Note: “stand-alone branded residences” refer to residential properties that are associated with a well-known hotel brands (such as Marriott or Hilton), but they are separate and distinct from the actual hotel. These residential properties are branded or affiliated with the hotel but do not function as part of the hotel itself.
They are typically used as permanent or semi-permanent homes. These residences are often designed and marketed as luxury condominiums or apartments that provide a high-end living experience for their owners. While they offer many of the services and amenities associated with a luxury hotel, the primary purpose of these properties is to serve as the owner’s long-term or permanent residence.