How Branded Residences Are Creating New Standards For Luxury Living

By Spencer Elliott

The idea of branded residential properties is not new—roughly a hundred years ago, the Sherry-Netherland became the first branded hotel development to feature fully-serviced apartments.

While the idea may not be revolutionary, the branded residence sector is going through something of a revolution.

In the last decade, residential properties attached to brands have expanded 230%, totaling over 580 developments worldwide, with forecasts predicting continued exponential growth.

So why the sudden rise 100 years later? For Jonathan Nash, a top-producing luxury realtor with Beverly Hills-based Hilton & Hyland, the recent popularity has something to do with modern society’s propensity for brand familiarity. “We live in a branded world, and buyers of such products seek association with brands they are loyal to and know they can rely on for a premium product,” Nash explains.

Fittingly so, hotelier brands make up the majority of the sector with brand loyalty being rooted in a proven track record for first-class hospitality. In almost all cases, residents of luxury hotel branded properties have access to the same amenities and services found at corresponding hotel establishments. As such, a luxury experience at upscale stays like the Peninsula Hotels, The Ritz-Carlton or The Four Seasons can inform what a next-level residential existence may be like.

“If a brand is highly recognizable and aspirational, the story has already been written and marketing requires a lot less explanation as buyers already know what to expect,” says Nash.

Though hotels account for 86% of branded residences, recent years have shown a growing diversity in the sector, with high-end automotive, fashion and interior design companies now looking to produce residential products. Such names include Aston Martin, Versace and Philippe Starck.

Even as brand loyalty and resort-like amenities make up a sizable portion of the appeal, branded residences are, in the end, real estate products that demand more basic draws, like location, views and size, to attract today’s buyers. This is why you’ll often find premier branded residences in some of the most prestigious addresses in major city markets like London, New York or Hong Kong.

As branded residences continue to prove successful, the standard of luxury living continues to evolve beyond traditional 5-star service. Properties like the upcoming Peninsula Residences London are changing the standards for luxury living, with amenities that will include personalized concierge services, a chauffeured Rolls Royce car fleet and upscale, in-house dining and shopping, all with a backdrop that includes Buckingham Palace, Hyde Park Corner and Wellington Arch.

“Surpassing the notion of branded residency, the property is fully integrated into the hotel building, fusing peerless hospitality and ultra-prime real estate,” says Simon Fernandez, Director of Sales at the Peninsula Residences London.

As is the case with other similarly distinguished developments, the Peninsula Residences London will house an exclusive, limited supply of private residential offerings in a variety of sizes and floorplans.

Pair that with a prime location, first-class amenities and a reputable name, like those found at the London Peninsula, and the project has an instant global cachet.

Looking ahead, Nash believes demand for desirable real estate in London is only going to grow in the coming years. As a global hub, the London property market is still considered one of the strongest for ultra-prime real estate in the world continues, particularly as inventory shortages continue to drive up house prices and interest from Asia and the U.S. purchasers remains strong.

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