Luxury buyers have long gravitated towards established financial capitals and preeminent vacation destinations when choosing where to invest in real estate.  Learn why we see, increasingly, these buyers now turning to the industry’s best hospitality brands to oversee their investment.

 

 

Branded residences refer to properties that are affiliated with a hospitality, lifestyle or luxury brand. They first emerged in Manhattan’s pre-war era, with the opening of the Sherry-Netherland Hotel, The Pierre and the new Waldorf-Astoria in the 1920-1930s.  Since, brands have proliferated across the globe, coveted by clients for their reputable management, hospitality driven amenities and concierge services. 

 

From the Bahamas to Dubai, and Hong Kong to the Uruguay, we now find award-winning spas, premium stocked kitchens, valet services, and in-residence five-star dining brought to you from not just storied names like The Ritz-Carlton and Four Seasons, but newer hospitality entrants like Fasano, Aman and The Standard, to luxury goods names like Bentley and Porsche (both Sunny Isles, Florida), Armani (coming soon to NYC) and Bulgari (Dubai and NYC coming soon).

 

A 30%+ Premium 

 

Aside from the assurance of a trusted brand, the economics are enticing.  Nearly 40% of luxury buyers around the world indicate they are willing to pay a premium for an attached brand, and, in fact, studied residential data confirms a global premium on average of 25-35% above non-branded condominiums.

 

 

Our clients have also gravitated to established and new entrant branded residences for a flexible, turn-key lifestyle with first-rate asset management not accessible to even those with a global property management team.  These buyers chose brands for the buy-and-close immediacy, with all furnishing in place, down to the cutlery and linens, and even with owner’s closets where your wardrobe can be stored and restaged for your return.

 

Increasingly, the ultra high net-worth are enticed by established branded residences offering a secure way to monetize their often under-utilized properties.  Rather than sit empty, some branded residences offer owners the chance to place their residence discreetly into the existing hotel “pool” of suites or a secure rental program.  Buyers then have a direct line to a Director of Residences, who working with property management oversee the investment, from post-occupancy inspections down to itemized monthly and quarterly statements.  

 

When in town, owners have their apartments stocked and ready for their return.  And when not in use, some of our owners have reported returns as high as 15-20%+ an impressive 3-4x+ the prevailing rate-of-return for conventional condominium rentals.

 

No Two Branded Residences are the Same

 

With such growth over the last decade, we as luxury advisors can decisively say no two projects are the same. Whether you’re considering purchasing a branded residence in Manhattan or anywhere else in the world, we encourage you to contact us to learn more about availability, and what’s in the pipeline, and for us to advise on which property best suits your lifestyle and investment thesis.