Branded residences have become more and more popular over the past 10 years. During 2019 alone, there were about 60 projects across 21 countries around the world, delivering more than 9,000 branded units. Asia represents around one third of that total supply.

Large hotel chain brands like Marriott, IHG, and Wyndham, among others, continue to dominate the branded residence market, but it is also interesting to see that around a dozen non-hotelier brands are expected to enter the sector by 2025, including YOO, Aston Martin, and Lamborghini.

Thailand has one of the largest branded residence pipelines in the region, not only based on the big hotel players but also with a few regional brands such as X2 or Dusit D2.

Are Branded Residences a Good Idea?

“It is ‘a good idea’ only if it is set up properly from the outset: a proper positioning strategy and then execution is definitely the key to success,” said Frederic Garnier, Executive Vice President of Nova Asset Management, who are currently developing several branded residence projects across Southeast Asia, including the iconic Aman Nai Lert Bangkok which is currently under construction. “Branded residences, as part of a mixed-use project including a hotel, create many synergies between both components,” he added.

Frederic explained that from a developer’s point of view, having a branded residential component ensures a faster payback while simultaneously benefiting from a long-term revenue stream from the hotel side.

“We believe interest in branded residences will grow, as developers will try to mitigate their risks by balancing real estate sales and recurring income,” said Frederic. “On top of that, we are currently implementing several features in our new projects to address any concerns resident hotel guests may have in the future such as a touchless journey for visitors and guests, UV-C disinfection systems, and enhanced fresh-air renewal equipment, just to name a few.”  

There may further details that owners need to look out for when building a branded residence. For instance, Frederic stated that the rental pool/rental management program can have a significant impact on the future operations, therefore it must be thought through from the very beginning of the project. Selecting the right brand and operator to run your residence can be critical.

“This is indeed a new trend that is here to last and we, as the main developer’s advisors, need to provide our client with our expertise in this new field,” confirmed Frederic.

There are about 80 projects are currently ongoing* in the region, at various stages, with more than half of those being affiliated with luxury hotel brands.