At HoSkar Night Bangkok 2025, our international speakers shared the latest trends and insights on branded residences across the region. Here’s a quick look at the key insights.
A Global Perspective On Branded Residences: The Future Of Ultra-Luxury
Rico Picenoni – Director, Head Of Global Residential Development Consultancy, Savills
- The global branded residence market is expected to surpass 1,500 projects by 2030, marking a 180% increase. In Asia Pacific, a 330% growth is projected, with the average project size in the region now exceeding the global average.
- Hotel brands account for approximately 80% of the global branded residence market, while non-hotel brands are gaining momentum. In terms of positioning, the luxury segment remains dominant, representing 64% of projects globally and 50% in Asia Pacific.
- Rental programs allow residence owners to partially offset ownership costs by generating rental income when their units are not in use. The decision to offer a rental program – whether optional, mandatory, or not at all – depends on various factors.
Going Independent & Creating An Ultra-Luxury Brand
Anthony Moulton – Founder & Managing Director, Brand & Co
- Crafting an ultra-luxury brand for independent property developments requires a higher level of branding and marketing effort. It calls for a clear, unified vision rooted in timeless values, enduring craftsmanship in design details, and compelling storytelling for emotional connection and belonging.
- Core principles include designing for exclusivity and discretion, steering away from mass appeal. Ultra-luxury also engages all five senses to deliver immersive, memorable experiences that forge deep emotional connections with the audience.
- Balancing key brand elements results in a masterpiece and defines a lasting legacy. Ultra-luxury, at this level, embodies a quiet affirmation for those who belong, not demanding attention.
Shared Facilities In A Mixed-Use Project: Key Elements To Consider
Pep Vich – MSc Arch, Founding Partner, CMV Architects
- In a mixed-use project with shared facilities, it’s vital to balance the needs of both residents and guests. Access control and flow separation are essential for areas such as F&B, wellness, and pools. Stakeholder collaboration, multi-use space functionality, and shared maintenance logic also need to be considered.
- Seamless design transitions between public and private spaces, subtly achieved through features such as landscaping or varied materials, help maintain a consistent brand experience for all groups.
- Effective shared facilities design leads to operational savings, elevated property value, and overall efficiency.
A Closer Look At Operating Margins: Branded Residences Vs Luxury Hotels In Selected SEA Countries
Tareq Bagaeen – Senior Consultant, HotStats
- Extended-stay branded residences show higher operating margins (44%) than luxury hotels (35%), representing the highest operating margin among all asset classes in Asia Pacific. This significant difference highlights the cost structure advantages of the extended-stay model.
- Lower costs of sales, payroll and other expenses contribute to the higher profitability of extended-stay branded residences compared to luxury hotels.
- On a 12-month rolling basis as of March, extended-stay branded residences in East Asia achieve the highest GOP margins at 50%, followed by Southeast Asia’s strong performance at 46%, highlighting the strength of branded residences in these markets.
The Art & Strategy Of Charging Right: Common Area Costs & Owner Fees Unveiled
Robert Collins – Managing Director, Savills Thailand
- Leasehold properties often allow for mixed-use developments that comprise hotels, enabling shared services and facilities, while freehold properties tend to be single-purpose, with more limited service offerings.
- The operating expenses of branded residence projects are roughly 25% higher than those of non-branded properties, mainly due to increased staffing and payroll costs, brand standards upkeep, and annual brand fees, all of which directly raise common area fees for residence owners.
- Maintaining brand standards drives up maintenance costs and reserve funds. Freehold branded residences tend to be more expensive than leasehold properties due to fewer shared operational efficiencies.
Learning From Experiences – With Leading Branded Residences Developers & Players
- Integrating hospitality elements into branded residences, such as offering services and fostering a sense of community around properties, can expand the value chain for developers and enhance the resident experience.
- The branded residences market has significant growth potential by targeting different price points and segments, without compromising the luxury appeal for ultra-high-net-worth individuals.
- Successfully developing a branded residence, especially with non-hotel brands, requires weaving brand elements into both the “hardware” (physical design) and the “software” (services, programs, F&B, and wellness offerings).
- Sustainability stands out as a crucial differentiator for ultra-luxury branded residences, especially among discerning buyers. Integrating it into the resident experience, beyond mere certifications, adds significant value.
HoSkar Night brings together developers, hotel owners, operators, investors, designers and brand leaders. Whether you’re exploring new ideas, looking for strategic partners, or simply reconnecting with peers – HoSkar Night has something for everyone.
Check out our past event highlights and attendee moments HERE to get a glimpse of what awaits you!
