MEDIA CENTRE - Events

THREG, London (06.24)

Philip attended The Hotel Real Estate Group (THREG) event and brought back the following take-away nuggets on ‘Branded Residential & Serviced Apartments’:

• The new W Hotel project in Manchester includes 230 W Residences, which sold out in only 12 months (much quicker than the developer’s business plan expectation of 5 years) and at a 30-40% premium compared to other new schemes in the city.
• Marriott claims to have the largest number branded residential projects in world, with over 200 projects globally, of which 70 in EMEA. Marriott also do residential only (ie no hotel nearby or part of a mixed-use scheme), with The Lucan in Chelsea (London) given as an example.
• There is a strong buyer market at the moment for the branded residential product. Investors/owners are keen because such projects provide confidence in delivery (due to brand involvement), convenience of high-quality services amenities on site and opportunity for lifestyle association and immersion.
• Other non-hotel brands are jumping on brand wagon, including: fashion brands, car brands, Conde Nast, Hello Kitty, Sports Illustrated and a hair dresser. There are now some 200 brands in the space. How to differentiate?
• More brands and locations are coming, including lower grade/star hotel brands to target the less affluent buyer.
• The owner-investor in such products is driven by ROI. The owner-occupier wants it immaculate. Developers want a return only.
• Stand-alone apartments with concierge services have been the predominant branded residential product in London to date.
• Rental pool clients (owner-investors?) like the simplicity of a well-known brand looking after the guests and any longer term tenants, and will pay a premium for such comfort.

Many thanks to the hosts (Taylor Wessing) for their hospitality in their temporary home, and good luck with the refurb and can’t wait to experience the new terrace.