Branded residences to launch @FHS

Branded residences, one of the fastest-growing sectors in hospitality, will take centre stage at FHS World, with a full-day conference led by one of the sector’s leading innovators, Accor One Living. Debuting at FHS World on 2 October, The Branded Residences Forum will feature workshops and conference sessions exploring the sector’s rapid growth in the Middle East and across the world.

TT Bureau

Savills data shows that the Middle East, which is rapidly emerging as a global hub for the hospitality sector, currently has 45,000 residential units in 200 branded developments across 80 brands. With a staggering 500 per cent increase in branded residences in the last decade – from 10 in 2014 to 50 in 2023 with another 50 in the pipeline – Dubai is the most active market worldwide and now rivals Miami, New York and London as a world leader in branded residential development. Saudi Arabia is also seeing significant growth, with a 65 per cent surge in its branded development pipeline between 2022 and 2023. The Middle East and Africa currently accounts for 19 per cent of the global branded residences existing and pipeline project network; Europe represents 16 per cent; Asia Pacific 22 per cent and The Americas 43 per cent. The world’s top locations for branded residences are Dubai, Miami, New York, London, Phuket, Sao Paolo, Los Cabos, Istanbul, Bangkok and Cairo, according to GBR.

Jonathan Worsley, Chairman of The Bench, organiser of FHS, said: “We are delighted to add this new and exclusive conference to FHS World. One of a host of new features and attractions at our 2024 event, The Branded Residences Forum will bring together an elite group of industry professionals and innovators to take a deep dive into the sector’s growth, evolution and seeming endless investment opportunities. We are proud to partner with Accor One Living – a global leader in this field – to explore the importance of branded residences to our industry today, and how the sector will be a key driver in the future success of the hospitality industry on a local, regional and global scale.”

Maya Ziade, Chief Development Officer, Premium, Midscale & Economy Division Middle East, Africa & Türkiye at Accor, said, “Over the last 20 years, the branded residences sector has matured from a niche concept to a key driver of global hospitality growth. Rising beyond luxury and lifestyle, branded residences are expanding into premium and midscale segments. While many of these residences are connected to hotels or mixed-use developments, standalone properties are also emerging, particularly in the UAE.” Jeff Tisdall, Chief Business Officer, Accor One Living and Global Head of Mixed-Use, said, “I believe that we have only just begun to tap into the potential in terms of helping our partners develop and operate branded residences alongside hotels anchoring mixed-use developments. With the market for branded residences continuing to proliferate, our Accor One Living platform and our Group’s unrivalled brand portfolio both serve as key differentiators.”

Zhann Jochinke, Director – Market Intelligence and Research, Cavendish Maxwell, said: “Hotels continue to be a popular choice for short-stay vacations, but demand for more personalised, flexible accommodation is on the increase. With branded residences, clients enjoy enhanced privacy and space in a home-from-home environment with world-class amenities. For investors, branded residences potentially offer increased revenue and stability compared to traditional hotels as they provide long-term rental income, capital appreciation and additional revenue streams.”

Ali Manzoor, Head of Hospitality, Hotels & Tourism, CBRE Middle East Region, said, “Given the unprecedented scale of hotel development across the region, demand in the construction sector has undoubtedly outstripped supply. As a result, development costs have been steadily increasing, which is attributable in part to the escalating cost of raw materials but more poignantly due to capacity constraints.”

Branded residences – facts and figures

• The branded residential sector has grown more than 160 per cent over the last decade, evolving from exclusively hotel branded in the beginning to a panoply of non-hotel brands (predominantly fashion, design and automotive) today
• As of late 2023, there were approximately 1,300 branded residential projects globally, of which c.1,050 (82 per cent) are hotel branded residences. There are also over 200 brands actively licensed for branded residences
• Three of the leading hotel operators in the branded residential space – Accor, Four Seasons and Marriott – combined represent 43 per cent of all hotel branded residences worldwide. The global average price premium for branded residences is 30 per cent, with mature global cities recording around 24 per cent, emerging cities 52 per cent and resorts 32 per cent
• Over the past decade, Dubai has emerged as the world’s branded residential capital, and is expected to realize more than 1,200% growth from 10 projects in 2014 to more than 130 by 2030. Source: Global Branded Residences
• The United States, where branded residences first started, represents 36 per cent of existing projects but just 18 per cent of pipeline branded residences, which shows the extent of the global growth
• MEA accounts for 19 per cent of the global branded residences network and pipeline projects. Europe represents 16 per cent; Asia Pacific 22 per cent and The Americas 43 per cent
• The world’s top locations for branded residences are Dubai, Miami, New York, London, Phuket, Sao Paolo, Los Cabos, Istanbul, Bangkok and Cairo
• Standalone branded residential projects have surged in growth in recent years, and now represent more than 15 per cent of all branded residences globally, and 30 to 40 per cent of annual signings for hotel operators most active in the industry,