What's in a name? Why branded residences have become the latest must-have for high-end property buyers

Whether it’s Armani logos in your living room, in-house cocktails courtesy of the Ritz-Carlton or a kitchen that mimics the contours of a Porsche, branded is the latest buzzword in luxury property. Wealthy buyers want the five-star hotel service they experience in their travels to exist in their homes too, and property developers are clamouring to partner with an upscale brand.

Traditionally that means a five-star hotel chain such as Marriott, who have lent their name to a third of the 406 branded residential schemes around the world, according to Savills, who have just undertaken the biggest ever study into this booming sector.

If you want a brand linked to your luxury residence, a hotel makes sense. They are experts in hospitality, have perfected the art of the concierge and are dab hands at turning down sheets. They don’t even need a physical presence on site.

At Twenty Grosvenor Square in Mayfair, where apartments start at £17.5m, developers Finchatton have paired up with Four Seasons to provide the first standalone branded residences by Four Seasons, which means residents have access to Four Seasons staff, services and facilities without the intrusion of hotel guests. It will be one of just two such Four Seasons standalone residences projects in the world, with the other in LA.

But the branded boom has gone way beyond hotels. Prestige car makers and fashion designers are muscling in on the act, providing schemes with a different type of name-dropping kudos. Take Miami, alone, whose high-bling branded offerings include properties by Armani/Casa, Aston Martin Residences, Missoni Baia. 

“Non-hotel brands are giving the hotel market a run for its money. The biggest non-hotel player is YOO, which has 52 schemes up and running globally,” says Riyan Itani, Savills’ director of international development consultancy.

“As long as there is a properly trained concierge and excellent management, it doesn’t have to be a hotel brand,” adds Ian Pidgeon, a partner at Knight Frank, who have also just released a report into branded residences. "I don’t think high-end buyers are driven purely by a fashion designer putting their name to a project. Buyers are too sophisticated for that,” says Pidgeon, who credits The Knightsbridge with kick-starting the trend for residences with hotel-quality concierge service in London.

The US and Asia lead the way in the branded residence boom, accounting for 45% of the entire market between them. But the Middle East, North Africa and Latin America are emerging as the big new players, according to Savills. Three quarters of branded schemes are in cities and just over half are high-rise towers.  

Famous brands don’t lend their names cheaply, however. The premium you pay for a branded residence over a non-branded one can be as high as 150% in emerging markets such as Kazakhstan, where a big name is seen as a safer investment. In European markets, it’s typically 20-45%. Among the highest premium projects are Four Seasons Palazzo Tornabuoni in Florence, Amanzoe in Greece and Pine Cliffs in the Algarve. 

In global cities such as New York and London, the premium is a more modest 8%. “In New York, we have actually seen a branded discount of 15% for the first time ever because of the exceptional quality of non-branded buildings. Brands alone will no longer command a premium in a saturated market,” comments Riyan Itani.

So where next for branded residences? “Tech will enter the sector soon,” Itani replies. “A Google or Amazon Tower perhaps. It only surprises me that it doesn’t yet exist. There are also holistic service and lifestyle brands that could come in, and luxury food and drink could be a big differentiator.”

The best branded residences across the world

The trailblazers 

It’s not enough to simply be branded in a competitive market such as Miami; you need to be a one-off too. “You can’t rely on the name any more,” comments Ophir Sternberg, CEO and founding partner of Lionheart Capital, developers of The Ritz-Carlton Residences Miami Beach, who claims a few firsts in the sector. 

This includes the first residential sharing room (where residents can borrow each other’s golf clubs, designer handbags or vintage artworks), the first partnership with a medical concierge (South Beach diet author and cardiologist Dr Arthur Agatson will provide one year’s free service to residents) and Miami Beach’s only navigable marine helipad. The residences cost from US $2m to over $40m.

Australia has been slow off the starting blocks but now has its first branded residence, One Barangaroo on the Sydney harbour front, practically within earshot of the Opera House. The new six-star Crown Resort hotel will service the 82 residences.  Prices start at AUD $9.5m through Knight Frank. 

Just inland from Portugal’s Algarve coast is a rare rural branded resort, Ombria, set over 150 hectares and to include Europe’s first Viceroy-branded residences. One bedroom residences managed by the hotel start at €300,000.

The wow-factor homes

At the Porsche Design Tower on Miami’s Sunny Isles Beach, perks include a patented, revolutionary car lift called the Dezervator, which drives your prized vehicle right into your apartment. Prices from US $5.5m.

Just few buildings along the beach from this homage to Porsche is Residences by Armani/Casa, another high-bling Dezer Development in which Armani has furnished all 308 units in the 60-storey tower. There’s also an Armani Privé lounge and 35,000 sq ft of amenities for residents. Prices from US $3.1m through Sphere Estates.

At the Mr C Residences in Beverly Hills, the "C" in question is Cipriani. This boutique LA offering of five sleek, modern residences, priced from US $4.5m through Savills, pairs home ownership with the Cipriani’s world-famous service. Hotel amenities on hand include a Mr C restaurant, spa and pool deck.   

The prime locations 

Set on a pristine one-mile stretch of Pacific oceanfront, surrounded by lush mountainsides an hour north of Puerto Vallarta, the One&Only Mandarina is giving Cancun’s Caribbean coast a run for its money as the place to be in Mexico.

These will be the world’s first One&Only private homes, set alongside the One&Only Mandarin, the Rosewood Mandarina and a world-class equestrian centre with polo, dressage and jumping arenas. The 55 four/five-bed villas cost US $4.5m-$10.5m through Savills.

The next big thing

Take an uber-cool city with dated housing stock and an under-served top end and you have “the sweetest of sweet spots” for a high-end branded residences scheme, says Savills’ Riyan Itani, who is talking about Barcelona.

Help is at hand though. Mandarin Oriental Residences on Paseo de Gracia goes on sale through Savills in 2019. Ranging from one to four bedrooms, they will be the first standalone hotel-branded residences in Europe.

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