Five-Star Living: The Perks of Branded Residences

The concept of branded residences originated back in 1927 when the Sherry-Netherland Hotel opened on Fifth Avenue. However, it did not become an established model until the late 1980s -- and, even then, they remained a unique segment of the luxury real estate market that was geared towards a privileged HNWI audience.

These luxurious homes are always in the best locations and associated (and usually co-located) within a 5-star hotel, which provides its guests a wide range of ‘at home’ services and high-end amenities to its residents. The original concept has remained the same, but the growth of branded residences has been quite astonishing. The decade leading up to 2012 saw a huge increase of branded residences, with established players, which include: Aman, Shangri-La, Four Seasons, Viceroy, and a wide array of others.

There has been an increase in other luxury brands that have licensed their name for branded residences. For example, Porsche, Aston Martin, Nobu, Versace, etc. all have their brands associated with select residences around the world. 

The surge in global wealth has multiplied the number of HNWI & UHNWI since the new Millenium. Owners of these residences are willing to pay a premium for the turnkey lifestyle, which provides hotel-style services and experience; This includes 24-hour concierge and security, transportation, secure parking, entertainment, cleaning, babysitting, in-home dining, laundry, and even fridge stocking. Additionally, on-site gyms, swimming pools, sauna, and steam rooms have become the minimum standard of expectation from its clients.

Many residences offer premium additions that can be added when buying, which could range from residents’ lounge, library, wine storage, private entertaining areas, and cinema rooms. For instance, The Amanravi Residence in Mexico’s Baja East Cape provides every villa with a private chef, housekeeper, and a 24-hour maintenance and security team. 

So, are branded residences worth the higher price point? Many of the homes offer a managed rental program, which generally provides a higher rental income and a stronger resale price for its clients. Also, branded residences provide owners with the reassurance that their home will be designed up to the high standards that commensurate with that particular brand. The quality, design, service, and management of the residence will be taken care of; It is all about peace of mind when it comes to your home, which is a precious commodity in this day and age.