Branded Residences—Tied to Names Like Bentley and St. Regis—Defy the Real Estate Slowdown
The number of such hotel- and luxury-affiliated housing developments is on track to more than double by 2031
2 min
Demand is booming for homes in developments affiliated with luxury hotels and lifestyle brands from Ritz-Carlton to Aston Martin and Armani.
There are a total of 720 branded residence developments worldwide, a figure that’s expected to double, with another 790 project in the pipeline through 2031, according to a report from Savills Global Residential Development Consultancy, released Monday.
Dubai is far and away the leader in the space with close to 60 completed branded-residence projects, and around 70 planned developments in the pipeline. South Florida is next, with more than 40 completed projects, and another 40 developments planned from Miami to Palm Beach.
New York is third for completed projects, while Cairo in Egypt takes third for planned developments.
Other active markets include Phuket in Thailand, Da Nang and Hoi An in Vietnam, and the Riviera Maya in Mexico.
Branded residences have proved resilient even as housing markets have broadly slowed amid rising interest rates. Their hotel or brand affiliation lends its imprint of familiarity and prestige, while many are co-located with a hotel where residents can access services and amenities or put their residence in a property-managed rental pool when it’s not being used.
While the branded residence was born in North America, other markets quickly opened up to the concept. The U.S. was the most active space for branded residences through 2015, after which its share began to dip below 50% of all projects. By 2031, it’s expected to make up just 25%, with the Middle East and Africa markets expected to grow at 270%, per Savills.
Branded residences have also taken hold across Asia Pacific.
“Beyond our forecast period, we expect to see an increase in the number of branded residential developments in Asia Pacific and for the region to rival North America within the next 12 years,” said Rico Picenoni, head of global residential development consultancy at Savills. “With highly active markets, such as Vietnam and Thailand exhibiting 10% annual growth, combined, and burgeoning markets such as Japan and South Korea exhibiting more than 50% annual growth, combined, it is not unrealistic that Asia will surpass North America.”
While hospitality companies are leading the charge in branded residences, seemingly every brand in the world has jumped on the real estate bandwagon, from car brands like Porsche and Bentley in Miami, to luxury designer brands like Fendi, Armani and Bulgari, with the Bulgari LIghthouse in Dubai. In fact, Hotel brands accounted for 81% of branded residences in 2023, though its share is expected to decline to 79% in 2024, per Savills.
Among hotel companies, Marriott leaves all the others in the dust, with close to 150 completed branded residences and more than 100 in development. That’s driven by the Ritz-Carlton and St. Regis brands, two of the top three brands for luxury residences, and some of the earliest players in the game.
The Four Seasons is next for completed projects, fuelled by the Four Seasons brand, with over 50 completed and around 25 in the pipeline. Accor has fewer existing residences but rivals Marriott with more than 100 projects in the pipeline.
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2 minBorrowers cannot control the Reserve Bank, but they can control how exposed their household budget is to its next decision.
The RBA meets on 29 September with inflation concerns still elevated and major-bank economists increasingly bringing forward their rate-rise calls. Fixed mortgage rates have also been moving, reducing the value of waiting for perfect certainty.
The first task is to calculate the impact of another 0.25 percentage-point increase. Indicative Canstar figures reported earlier this month suggest that such a move would add about $91 a month to repayments on a $600,000 loan, $122 on $800,000 and $152 on $1 million, although actual changes depend on rate, term and loan structure.
The second task is to compare the current loan with the market. Borrowers should examine the interest rate, annual package fee, offset balance, redraw rules and the revert rate on any expiring fixed portion. A lower advertised rate is not necessarily a better deal after fees, lost features or refinancing costs.
Third, test the household budget at least one percentage point above the current rate. This is not a forecast; it is a resilience exercise. Include council rates, strata, insurance, maintenance, school costs and realistic discretionary spending. Investors should also allow for vacancy and repairs rather than assuming uninterrupted rent.
Fourth, contact the existing lender before lodging multiple applications. A borrower with a sound repayment history may be able to negotiate a discount without refinancing. If the offer is weak, obtain comparable quotes and seek advice on whether changing lenders will genuinely improve the position.
Fifth, preserve liquidity. Using every available dollar to reduce principal may feel prudent, but an offset account can provide interest savings while retaining access to cash. The right structure depends on tax position and loan purpose, particularly where owner-occupied and investment debt coexist.
Borrowers considering a fixed rate face a trade-off. Fixing can provide repayment certainty, but may restrict additional repayments, offsets or early exit. Splitting a loan can diversify rate exposure without removing risk.
The worst time to examine a mortgage is after repayments have become unmanageable. A review conducted now gives borrowers more choices: renegotiate, refinance, adjust spending or build a buffer while their record remains strong.
Borrower checklist
Calculate: Repayments after a 0.25 and one percentage-point increase.
Compare: Rate, fees, offset, redraw, cashback conditions and total cost.
Review: Fixed-rate expiry, interest-only expiry and remaining loan term.
Protect: Emergency liquidity and insurance.
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