THE APPEAL OF BRANDED LIVING
It is less about the personal butler these days and more about the private tutor or cyber bodyguard, as technological progress and the constraints of a global pandemic influence the changing needs of high-net-worth individuals. But there is nothing new in the world’s rich and famous seeking to outsource many facets of their busy lives.
Gabrielle ‘Coco’ Chanel in her suite at The Ritz Hotel in Paris, 1937
Just look at the number of high-profile names who have become long-term residents of hotels, including Coco Chanel, who lived at the Ritz in Paris for 37 years, and the actor Peter Sellers, who spent decades residing at The Dorchester in London.
This desire for turnkey, on-demand luxury living is a core factor in the popularity and continued growth of branded residences over the past decade. Where financial crises, political uncertainty and Covid have made a prolonged dent in other areas of luxury property markets, including in Prime Central London, the sector has continued to grow, with 100 new schemes globally including the Mayfair Park Residences on Park Lane, managed and serviced by the Dorchester Collection.
For wealthy buyers who, pre-pandemic, would travel extensively for work and leisure, branded residences offer the ultimate in convenience. They know the brand, and its values, and they can rely on the quality of service they will receive – whether it’s quickly resolving a wifi malfunction, or delivering midnight martinis to their door.
That convenience comes with intuitive design, too. “It may be something the customer doesn’t notice but which will affect their entire experience, such as having triple glazing and non-intrusive air-con, and having every wall switch at your fingertips,” comments Clement Kwok, CEO at The Hongkong and Shanghai Hotels.
It also means having a turnkey home that runs like clockwork, “offering a lifestyle that is hassle-free, ultra-convenient and supported by a seamless set of luxury services on demand,” Jeff Tisdall adds.
“What the pandemic has also highlighted is the reassurance that a proven luxury brand provides during periods of uncertainty - particularly long-tenured brands, proven over generations”.
Privacy is a priority for UHNW buyers, and Tisdall describes the “careful balance to be struck” between attending to that need, while also offering consummate convenience and service.
While some buyers wish to remain under the radar and use a separate entrance to hotel guests – such as the residents-only Spies Entrance at The OWO in central London, or the private residents’ entrance at The Peninsula Residences London - others are drawn to the possibility of being part of an exclusive club of like-minded individuals.
The OWO, London
Over an exclusive wine tasting in the residents’ lounge, these wealthy owners – often entrepreneurs and CEOs - may even strike up new business collaborations.
Cementing this sense of exclusive membership are offerings such as Raffles’ Diamond Club for owners, which gives them preferred pricing, access and personalised service whenever they travel to other hotels and residences within the group. “The ability of Raffles to recognise the VVIP status of residence owners in so many different settings around the world is in part what sets us apart,” says Tisdall.
Perhaps the most powerful part of buying into a brand, however, is its ability to make the unknown familiar. A global brand transcends borders, nationalities and cultures to a large extent, and offers a reassuring sense of familiarity and quality wherever you are in the world.
“The power of brands is getting stronger and stronger, and buyers in branded developments are often people with many properties around the world. They rely on the brand as a name they know in a location that they may not,” comments Enrique Benjumea, a founding partner at Blasson, a property investment firm whose projects include Madrid’s Four Seasons Residences in the city’s former Centro Canalejas financial centre.
Such branded schemes are a relatively new concept in Spain, but Benjumea adds that the success of the Four Seasons scheme – in which a third of buyers were Spanish, a far higher proportion than he expected – “has opened up opportunities across Spain and Portugal for new luxury international brands to come and adopt the branded residences model”.
With hundreds of branded residence schemes globally all offering – to a differing degree – the staples of luxury living, from spas and swimming pools to round-the-clock concierge services, brand recognition and affiliation will push buyers in the direction of one scheme over another.
But what underpins any branded property purchase is trust: trust that the brand will deliver a high-quality product and service.
“Developing a compelling branded residence is more than simply licensing a luxury watch, fashion or automotive design,” comments Tisdall. Trust in the brand is also key to instilling confidence in buyers – particularly when they are purchasing off-plan, adds Josh Ayres, co-head of London Residential Development at Strutt & Parker. "If someone is considering buying at The Peninsula Residences London and has stayed at The Peninsula Hotel in Hong Kong, or a buyer is looking at The OWO Residences by Raffles in London and has stayed at the Raffles hotel in Paris, they have the benefit of having tried before they buy," says Ayres. “They know the brand has to retain the same level of service because that brand depends on it.”
The investment aspect is also a crucial driver for buyers in branded schemes, “particularly for offshore buyers,” says Tisdall. “Branded residences make the perfect investment choice, providing the opportunity to acquire a home managed by a globally recognised and trusted brand.”
The Four Seasons, Madrid
Madrid’s Four Seasons Residences achieved a record price for Madrid of €16,000/m2 when the 22 residences sold off-plan. “Before this project, the highest prices in Madrid were around €12,000/m2, and any future resales at the Four Seasons are likely to touch €20,000/m2,” says Benjumea. “That price level applies to a very small number of iconic penthouses in the city or the occasional super-villa in La Moraleja – but there’s nothing else that offers the community and huge amenity spaces of the sort seen in the Four Seasons project.”
Analysis of branded schemes shows they command a premium of around 16-25% over comparable non-branded residences. “The main thing is that the branding isn’t just a marketing tool. It has to be a genuine offering,” says Ayres. Given that, he says, the scheme’s prestige – and premium – should have longevity. “Buyers will always be attracted to the latest launch, but a hotel branded project will maintain interest over a long time. A Peninsula or a Raffles-branded scheme will always have a spotlight shone on it.”