FORBES | Hotel Living: How Hotel Residences Are Changing Tourism
Growing in popularity, hotel-branded residences can offer investment potential for buyers and added value to the surrounding community.
Checking out of a five-star hotel is never easy: it’s hard to say goodbye to the swish amenities; pristine suites; and your-wish-is-my-demand service. However, with more and more luxury hotels now offering private residences, some guests never have to go through the dreaded check-out process again and instead, can call the hotel—and all of its lavish trappings—their home.
What Is A Hotel-Branded Residence:
Largely situated in a private section of a hotel’s grounds, hotel-branded residences are serviced properties that allow owners to live in the hotel with access to the same amenities as guests. Moreover, when owners aren’t using their new hotel home, they’re able to rent out their residence through the hotel to offset their ownership cost.
Hotel-branded residences aren’t a new thing, but in the last few decades, the trend has taken off with hotels brands like Aman, One&Only, Four Seasons, Mandarin Oriental and Ritz Carlton coming aboard. It’s estimated that there around 400 branded residences worldwide, with not only hotels but other big-name luxury brands entering the mix like Versace, Fendi and Porsche.
“Branded residences offer hassle free living, and in today’s busy world, this is a big plus,” says Miltos Kambourides, the Founder and Managing Partner of Dolphin Capital Partners, the leading global residential resort investors and developers responsible for products like Greece’s Amanzoe and upcoming One&Only Kéa Island. “This comes with the possibility to enter your residence into the rental pool when you are not using it, thus covering your maintenance/service expenses, plus earning a return through rental income. The resort takes care of your house, of the maintenance, the staff and basically runs it like a hotel...In these times, resort villas offer a safe product both in terms of investment and health. As such, we have seen a significant increase in demand this year.”
The appeal of hotel-branded residences doesn’t just come down to the financial stability and factors of convenience, however. Savvas Savvaidis, President and CEO of Greece Sotheby's International Realty, whose offering includes the branded residences at Amanzoe, emphasis the aspirational and exclusivity aspects, which also come into play when you’re dealing with a cult-brand like Aman: “The lifestyle component of hotel-branded residences is key to buyers’ decisions.” Buyers frequently put a premium on “the status associated with a premium branded address,” along with things like potential for investment returns and the assurance of quality that comes from buying into a lauded luxury hotel like Aman. “They trust the brand…[they are] are true and loyal followers of Aman hotels worldwide,” says Savvaidis.
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