Today the provision of hotel services has become part of this concept as wealthy buyers demand developments designed with on-site restaurants, bars and leisure facilities, and a famous, "trusted" brand name associated with their properties. It is reported that Four Seasons and Ritz-Carlton currently dominate the global presence, followed by Kempinski, St. Regis and W Hotels, with an estimated tenfold increase in the number of hotels offering branded residences during the decade till 2012.
Branded residences - Overview of brands and segments
Branded residences are now adding a residential facet in both large metropolises where condo living is the norm and also reach out to regions where suburbia is a way of life. According to a recent research, about 35% of existing branded residences can be found within vacation spots in the forms of apartments, penthouses, townhouses and villas applying rental pool/timeshare programs, considered as “second homes” or “condotels” of owners.
A majority of 65% are situated in metropolitan areas and include apartments and penthouses perched atop of mixed-use developments, which share some facilities with the hotel and are managed by the hotel operator. Such property is considered as “first homes” or “primary residences” of owners. This second concept has existed in the U.S, the Middle East, and Europe for quite a long time and is now slowly growing in emerging markets. Therein, especially Southeast Asia is witnessing a continuing urban-dominant trend on account of perceived “safe haven” investment credentials, driven by the economic growth and improved investment environment including reforms of foreign property ownership. Particularly in metropolises, branded residences capitalize on outstanding features namely prime location, iconic architecture, and cutting-edge interior design with unique furniture and equipment, five-star hotel services and facilities, top-notch safety and security, exclusive accommodation units with like-minded neighbours, and high liquidity of property values.