Living in a hotel – the rise of branded residences

In November 2023, the Aman Group completed Aman Residences, Tokyo – its first standalone branded residences occupying the top 11 levels of the Mori JP Tower in Azabudai Hills. The buyers of the 91 fully serviced residences not only acquire panoramic views, luxuriously fitted homes and hotel-like amenities – including a lounge, bar and Aman spa with a 25 metre swimming pool – but they are also buying into the ethos of exclusivity and privacy of the famed hotel brand.

The Aman Group first ventured into the branded residence market when it opened Amanpuri in Phuket in 1988 with on-site homes for sale. Launching a standalone property reflects how seriously hotels are now taking the demand for luxury branded residences. Pre-2020, hotel-affiliated projects dominated the sector at 86 per cent; today, 30 per cent of new developments between 2020 and 2024 are standalone branded residences and mixed-use projects.

A premium lifestyle

Compelling research from C9 Hotelworks shows that branded residences in Asia are now worth a record US$26.6 billion, with more than 68,000 upscale and luxury units. The numbers produced by the Asia-based hospitality consultancy were shared at a talk organised with media company Delivering Asia on Feb 25, where a panel of industry experts examined the sector’s astronomical growth.

“This will continue to evolve, with brand penetration in every Asian gateway city,” says Bill Barnett, C9 Hotelworks’ managing director. “You’ll have new standalone projects because these companies now understand that their brands are valuable and they want other ways to sell their brands beyond hotels.”

According to Lee Nai Jia, PropertyGuru’s head of real estate intelligence: “A brand serves two purposes. One is the communication of quality, and lifestyle. The second is to create a sense of scarcity, and a kind of barrier to entry. The key thing about property, especially if you buy off-plan, is that you can’t see, touch or feel (it). But people have this confidence (with branded residences) because when you visit the hotel properties, you can (experience the brand physically); so that bridges the gap.”

Fancy a Fendi home?

It is not just hotels that are in the game. Luxury fashion brands, automotive brands and consumer luxury brands are also angling for a piece of the pie. Last year, German automaker Porsche and Thai developer Ananda Development launched the first Porsche Design Tower in Asia, offering only 22 duplexes and quadplexes selling from US$15 million to US$40 million each.

Barnett notes how buyers’ changing values make branded residences more attractive than traditional luxury developments. “They now value cuisine, art, club (memberships) and engagement. So it’s natural for luxury brands and groups like Fendi and Dolce & Gabbana to move fast into real estate; it’s a logical brand extension.”

Michele Galli affirms this. He is the chief executive of design studio The One Atelier, whose projects include 888 Brickell Miami by Dolce & Gabbana, and the Fendi Casa-outfitted Casa Canal in Dubai. “Buyers are not just purchasing a property but a fully immersive branded lifestyle and, at the same time, becoming members of an exclusive club,” he says. They also enjoy the VVIP treatment, being flown across the world to choose their finishes and customise their units.

Ultimately, these collaborations benefit everyone. “On one hand, the investor and developer can be globally visible through the association with the brand,” points out Gianfranco Bianchi, The One Atelier’s Asia-Pacific general manager. “On the other hand, for the user, it’s only available in limited numbers with few projects around the world.” Bianchi adds that his firm will launch a new branded residence project in Bangkok in April.

Revenue makers

Currently, Thailand takes the top spot, capturing 23.3 per cent of the branded-residence market share, followed by the Philippines with a 17.3 per cent market share, and South Korea with 11.6 per cent. In terms of pricing, however, Singapore leads the region at US$23,026 per square metre (sq m), followed by Japan at US$20,827 per sq m.

For the brands, branded residences provide another revenue source. Developers can command premium pricing of about 30 to 35 per cent above market rate. Hotels and lifestyle brands can charge higher licensing fees of between 6 and 10 per cent of each unit’s sale versus typical luxury units, as well as increase their market share in a country. Hotels can also charge maintenance fees, guaranteeing future earnings, adds Barnett.

He points out that, traditionally, branded residences were centralised in beachside locales, with a scattering of projects in central business districts. Today, urban projects make up 56 per cent of the existing supply in Asia, and dominate the sector in terms of market value. In Thailand, city branded residences fetch about US$770 per square foot (sq ft) compared with US$430 per sq ft in resort locales.

But places such as Phuket, where the branded-residence market has long had a foothold, are still popular, especially with Singaporeans. The worth of the current supply of branded properties on the island now exceeds US$2.3 billion. Accessibility is a vital factor – there are 146 weekly flights from Singapore to Phuket as at February 2025.

The lifestyle shift

“Global migration is at a level higher than we’ve ever seen,” notes Barnett. “I live in Phuket and, after the pandemic, we (have seen) many people coming from Singapore saying ‘I want a lifestyle change; I’m evaluating a place where I can see my kids grow up’.”

David Johnson, CEO of Delivering Asia, stresses the parallel trend of “Jomo” (joy of missing out) rather than “Fomo” (fear of missing out) among luxury travellers who value disconnection and life-enhancing experiences embodied in well-being, self-care and community.

In Phuket, the island’s 13 high-end international schools are a huge draw for parents. For Singaporeans, the school fees are attractive, given that the median annual tuition fee at United World College (UWC) Thailand in Phuket is US$20,500 versus US$35,500 at the UWC branch in Singapore. Likewise, a luxurious home is more affordable; for the price of a 58 sq m condominium unit in Singapore, one can purchase a five-bedroom villa in Phuket.

Mobile working is also another pull-factor making second or third homes in various locations more viable. “People (can run) businesses from anywhere,” says Barnett.

Collect them all

Barnett highlights the top end of the buyer spectrum being “the collecting culture of high-net-worth individuals who can work from anywhere and gather trophy assets – Crazy Rich Asians said it all”. But in places such as Singapore, where cooling measures make it difficult to buy second properties, nearby foreign investments have become a huge draw not just for the upper echelons. Countries such as Japan and Thailand are also making it easy for foreigners to buy property.

Branded residences provide a fuss-free entry point for foreign buyers in this aspect. “Being able to purchase their home or investment with a trusted brand who they value and are familiar with provides the buyer a huge degree of comfort over what may be a confusing process of buying real estate in a foreign country,” says Teo Junrong, vice-president, business development for Singapore, Malaysia and Indonesia, at The Ascott Ltd. “This level of trust carries on not only for the buyers themselves, but also for the people looking to rent their properties in the future, and the secondary buyers for the resale market.”

Early investors benefit the most in such projects. Barnett gives the example of Park Hyatt Niseko Hanazono Residences in Japan, a premium ski-in, ski-out property. “First-phase sales rolled out at US$16,000 per sq m and, five years later, a resale on the secondary market recently commanded US$32,000 per sq m; so that’s about 20 per cent annual capital appreciation. That said, money is most often made on villas that have a sea view or dynamic view, and are unique. These are not bought for rental yields, but the play long term is capital appreciation.”

Asia’s greying population

Clearly, the demand for branded residences will only soar. Barnett attributes this also to Asia’s rapidly greying population. “We are seeing increased transactions in this segment for branded property as a second home. Older affluent buyers are attracted to such offerings for their full service offerings, including concierges. They are after a one-stop property solution.”

Larger, ultra-luxury villas in developments such as the Anantara Layan in Phuket have also become hot property, says Barnett. “These properties, often with five to seven bedrooms, have seen a resurgence in line with the trend of multigenerational living. Older parents are now living with their children and often grandchildren as well. The pivot is a return to the traditional Asian complex household.”

Luo Jingmei