By: Kerry McClinton-King– Business development director at Six Senses Residences
The last 10 years have been monumental in the growth of the phenomenon that is branded residences, with Savills’ recently reporting a 230% growth in the last decade alone.
From what was once a sector dominated by luxury hotel brands, there’s now a steady increase in not only non-hotel offerings, but also non-luxury, meaning the range of potential competitors is growing.
But what does this rapid expansion and increased diversity of the sector mean for the high-end brands operating within it? And what do these brands need to focus on to ensure stand out in what is an increasingly busy marketplace?
Individual approach to wellness and amenities
Savills’ 2021 Spotlight on Branded Residences also highlighted how many consumers have come to expect as standard amenities available on their doorstep. 24-hour concierge, car parking, security and fitness facilities are all seen as essential offerings when it comes to branded residences.
Amenity offerings must continue to evolve alongside the evolution of consumer lifestyles, especially in a post-pandemic world. The rise in flexible working has meant more high-net-worth individuals wanting a well-designed space to work from home reliably, including a strong WiFi connection.
Wellness, which has always been at the very core of the Six Senses Residences brand, has only grown in importance in recent years. Whilst we already have an extensive network of global experts and practitioners to lead world-leading wellness programmes and retreats, brands like ours need to ensure we’re always scanning the horizon for the next and latest offerings to bring to our buyers and residents.
Businesses bringing new branded residences properties to the market need to be forward thinking in their planning processes to stay relevant with consumers, especially when mentalities and needs are ever-changing.
Unrivalled Sustainability Credentials
As we become more eco-conscious as consumers, our decisions are increasingly being driven by the need and desire to be sustainable – and the real estate sector is no different. Currently, the built environment accounts for 40% of global emissions, so the emphasis on sustainability has never been more important.
Now, purpose is emerging as a key driver for property investment amongst global high and ultra-high net worth individuals. These buyers are operating and investing in a far more environmentally and socially responsible way, with a rising focus on philanthropic motivations rather than financial returns.
For developers of branded residences, this raises the question over how to ensure sustainability without sacrificing the quality and experience that buyers of this level know and expect.
Changes such as the full elimination of plastic items, an initiative Six Senses Residences will complete in 2022 – is a positive and effective place to start to improve sustainability credentials. At Six Senses Residences, our approach to sustainability extends to every corner of each of our homes, from passive cooling through to bio-degradable cleaning products and reducing water usage.
Alongside considering and preserving the local and global environment, it’s also vital for brands in 2022 and beyond to ensure they are contributing to the local community and honouring its cultural heritage – which in turn provides an unrivalled level of authenticity for buyers, residents and guests.
Intuitive hospitality for residents
Above and beyond owning a property, purchasers of branded residences are also buying into the unmatched lifestyle and service of the brand itself. When it comes to hospitality brands, customers know and trust they will receive the same five-star hotel experience as a property owner as they do as a hotel guest – and it’s this experience that can really set a branded residence apart. Our owners are welcomed as VIP guests at all of our other hotels, offering exclusive discounts across the globe.
Brands must bring an emotionally intelligent approach to service and hospitality – with dedicated on-site teams to anticipate residents’ every need and ensure each stay is seamless and effortless. Creating a bespoke and unique range of crafted experiences for residents within each residential location also ensures brands will stand out amongst the competition.
Provide a distinctive investment opportunity
Investing in a branded residence offers a unique opportunity for buyers – the world class level of amenities, yet with the privacy and personal touches of a private property. By investing in a property of this type, buyers have the potential to appreciate financial returns long term, in several ways.
Many owners will have the option to place their home into a hotel rental portfolio, providing an opportunity for income potential – whereby owners can rent out their property whilst not using it themselves.
Making the owning experience as seamless and hassle-free as possible for purchasers is also key. Typically, and at all Six Senses residential location luxury, properties can be wholly managed by the onsite hotel team to ensure a smooth experience, while turnkey furniture packages – offer an extra sense of ease and convenience for buyers.
There will soon be branded residence in nearly every residential market in the world, and as the number of brands participating continues to grow, so will the challenges. Businesses need to ensure immaculate planning processes are in place, from building and maintaining client trust through understanding their future needs, through to finding likeminded developer partners.
We must stay committed to each and every project we develop, the communities we immerse ourselves in and the service we provide to our buyers to ensure this edge over competitors.