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Branded residences find a home in hotels
A LEGACY LINCHPIN OF LUXURY HOTEL DEVELOPMENT IS FINDING NEW FORMS .
Contributed by STEFANI C . O ’ CONNOR
One of the drawbacks of the service economy is that you can ’ t take it home with you . But what if you didn ’ t have to leave ?
Hotels are the quintessential service companies : They don ’ t produce anything but an ephemeral experience — memorable , hopefully . At the luxury end of the spectrum , the experience is typically an indelible one — why not apply it to a residence ? In branded residences , this is not only a reality , but a boon for lodging companies and owners , too .
The branded residence sector is heating up , with much of the fervor for development driven by affluent consumers who are not only looking to increase their real estate investment holdings by having a second or third home , but also the lifestyle and social status the associated hotel brands bring to the residences .
Speaking to HOTELS the day French hospitality giant Accor announced it ’ s looking to triple its residential footprint over the next five years , Chairman and CEO Sébastien Bazin observed that developers are equally enthusiastic for branded residence projects . “ The profit they make on the real estate helps them to pay for the hotel component . For us ,
A residential unit at The Fairmont Century Plaza Residences .
it ’ s about expanding our brand awareness , our brand service ,” he said .
According to Bazin , a branded residence and a hotel room are distant cousins or closer . “ Servicing an apartment is of the same manner and the
THE COMMITMENT TO DESIGN AND PLANNING IS ESSENTIAL TO THE SUCCESS OF STANDALONE BRANDED RESIDENCES ... BUYERS APPRECIATE KNOWING THAT THE BRAND AND THE DEVELOPER HAVE WORKED CLOSELY TOGETHER TO ENSURE WELL-STRUCTURED PROJECTS THAT DELIVER EXCEPTIONAL HOSPITALITY SERVICES
– JEFF TISDALL , CHIEF BUSINESS OFFICER , ACCOR ONE LIVING
same expertise as servicing a hotel room ,” he said . “ It ’ s very much synergistic and it is very important for us to shine where many people did not expect hospitality brands to invade a real estate arena .”
Accor has been doing residential for the past 10 years without people noticing it , Bazin contended , “ which is why we decided to make a big push .” Accor intends to grow branded residential from 40 residences to 120 across over 12 different brands .
Tasked with bringing this to fruition is industry veteran Jeff Tisdall , chief business officer of Accor One Living , which is geared toward the development ,
Jul / Aug 2023 hotelsmag . com 19