BRANDED RESIDENCES
Brand Value
Branded residences are properties available to buy on the open market that are affiliated, usually by design and servicing, to a well-known brand - typically a hotel. For buyers, a branded residence offers the quality, services and amenities of a hotel and typically command a price premium over equivalent non-branded properties. The average global premium stands at 31%, but does vary significantly by location.
"The number of branded residences around the world has grown by 170% over the past decade…"
It is a rapidly expanding sector fuelled by a growing, globally-mobile high net worth population attracted by high levels of service and hassle-free ownership. Brands, meanwhile, benefit from additional income streams while deepening their relationships with their customers.
The number of branded residences around the world has grown by 170% over the past decade and 2020 is set to be another record year with more than 100 new schemes opening. In alpine markets, branded residences are also growing quickly, having increased 81% over the same period.
One of the recent success stories in the Swiss Alps has been The Chedi Andermatt. Opened in 2015 and designed by Malaysian-based Jean-Michel Gathy, this luxury 5* hotel has 121 bedroom suites, complemented by an additional 119 luxury apartments. Uniquely, they may be purchased by non-Swiss residents. Asking prices for the penthouse units are the equivalent of those in leading resorts such as Verbier and Courchevel 1850, demonstrating the premium price demanded for brand luxury.
The Chedi has helped pave the way in positioning Andermatt as a destination resort. The recent addition of The Radisson Blu and its associated Ghottard Residences is also attracting strong demand and commanding a premium of circa 34% above other new builds in Andermatt.
Existing schemes in the French Alps include Six Senses Residences and Spa in Courchevel 1850 and Club Med in Valmorel and Samoens. Six Senses has also lent its name to a luxury scheme of just 19 residences in Crans Montana, following the success of The Chedi. Hard Rock Davos is also offering buyers the opportunity to invest in an aparthotel scheme with up to six weeks usage per annum.
Other schemes in Switzerland are in the early stages of planning in Zermatt, Verbier and St Moritz. Meanwhile, Lefay Wellness Residences Dolomiti offers a luxury experience in the Madonna du Campiglio, complementing their sister hotel and spa on Lake Garda.
It is not a surprise that nearly all branded residences in or near ski resorts are hotel brands, because they are in tourist destinations. Just one non-hotelier has a scheme in a ski resort, namely YOO which has a development in Niseko, Japan.