The Hanoitimes - Vietnam appears to be a potential market for branded residences with the future destinations like Hanoi, Ho Chi Minh City, and Danang.
Branded residences, which are normally a partnership between a brand (often a hotel operator) and a developer, have grown rapidly in big cities over the world and Vietnam is expected to see the growth of this concept in the upcoming time, a senior executive from Savills has said.
There is tremendous opportunity for developers to embrace this concept and apply it in urban cities namely Hanoi, HCM City, and Danang as competition in the residential sector will be fiercer and buyers increasingly demand for alternative products, according to Mauro Gasparotti, director of Savills Hotels Asia Pacific.
He said that branded residences are attractive through offering the added value of a brand and enhancing experiences for the homeowners. The engagement of a brand ensures the quality of design, security and high levels of services.
However, it requires a thorough understanding of the concept and structure of the involved parties, he warned.
Savills statistics showed that branded residences have taken off in the last two decades. The scale has risen fourfold in 20 years thanks to a growing, globally-mobile high net-worth population.
In addition, this kind of property instills confidence in buyers, and is especially attractive to globally-mobile, time-poor individuals seeking a high service offer, hassle-free ownership and prospect of rental returns when not in occupancy.
Hoteliers benefit from diversified schemes and additional income streams, while deepening their relationship with their customers. Developers, on their part, see their profile and profit risen by combining with a brand.
There are some types of branded residence including co-located (residences located on same site as hotel), condo hotel or condotel (residences located within or comprise entire hotel building), standalone (residences on separate site to hotel (but hotel of the brand usually present elsewhere in city/location), and non-hotel (residences associated with non-hotel luxury brand).
Of the global hotel branded residences, Marriot International, Inc. accounts for 31% shares of schemes.