Branded residences are traditionally a strategic partnership between a reputable hotel brand and a property development. Through this direct association, the property naturally benefits from the hotel group’s well-established and positive brand image. Instilling buyer confidence in the building and facility’s quality, management service and security – all delivered by the trusted brand.
In fact, this type of property product class has been around for some time. Since the founding of the first branded residence in 1927, the Sherry-Netherland hotel in Manhattan, there are now over 400 branded residences around the world. However, strong renewed interest in this product type has only been apparent over the past few years, signalling the ushering in of a new age of sophisticated consumers with high luxury lifestyle expectations.
Demand for branded residences is directly correlation with wealth creation. With the rise of the worldwide mega-wealthy population by 18% in the five years up to 2017 and the 40% forecast increase in the next five years, growing demand for brand residences is expected.
According to a survey by Knight Frank, more than one in three international buyers (39%) would be willing to pay a premium for a branded residence. In Australia and Asia, the statistic rises to 45% and 43, respectively.
Normally, the premiums are between 25% and 35% compared to a non-branded scheme, but the good news is that data shows that branded residences also appreciate to a larger extent. Looking at Four Seasons properties around the world with a residential component, there are regular transactions suggesting appreciation of 20% to 25%. The limited supply of this unique product type also serves to protect prices.
The concept of branded residences has evolved to include a wider range of definitions outside of hotel group associations. Non-hotel brands are growing in the branded residences sector but still remain relatively small in comparison, including car companies like Porsche and Aston Martin, and fashion houses, such as Versace, Armani and Missoni.
With over 50 residential developments completed and operating globally, interior design firm “YOO” has overtaken hoteliers to become the single largest brand of any type by number of projects. Founded in 1999, YOO was established by John Hitchcox in partnership with internationally recognized designer Philippe Starck. YOO enlists a revolutionary mix of visionary design talent – Philippe Starck, Marcel Wanders, Jade Jagger, Kelly Hoppen MBE, Steve Leung, Sussanne Khan and YOO Studio.
YOO has launched its latest design project in the heart of KLCC, YOO8 Serviced by Kempinski. It features unique fully furnished branded residences crated by world-renowned interior designer, Kelly Hoppen for YOO, with 5-star hospitality serviced by Kempinski Hotels. The development is set to be the world-tallest spiraled twin towers upon completion, a magnificent architectural feat. At YOO8, the residences comprises of one- to three-bedroom apartments ranging from 700 to 1,300 sq.ft. with an average price per sq.ft. of HK$6,030. Luxury properties in KLCC are still relatively affordable compared to other Southeast Asian cities like Singapore and Bangkok, with the same international level of quality and service.
A 43-acre comprehensive mixed-use development with smart city features in the heart of Penang, the “Silicon Valley of the East”.
A mixed-use development located in the heart of Kuala Lumpur City Centre, Malaysia’s most sought-after neighbourhood.
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