Marriott International’s branded residences rising in popularity

There’s a lot to love about living in a luxury hotel, from having access to convenient services and fantastic amenities to taking advantage of a prime address.

Hollywood glamorized the concept with movies and TV shows. John Travolta made it chic. Enough business executives lived in hotels that the US Census Bureau issued a 2006 report on the trend.

But today, what used to be an intriguing fantasy for a few is becoming a true lifestyle for many more – though with a significant twist. Residential real estate developers are increasingly realizing that building an unbranded condominium project isn’t enough anymore to attract top-tier buyers who are used to luxury hotel living and are willing to pay a premium for convenience. So, to stand out from the competition and command the best prices, residential real estate developers are increasingly linking their projects with some of our most famous luxury brands such as The Ritz-Carlton, St. Regis, EDITION and W.

Buyers are looking for that extra seal of approval that our brands can provide – as well as services and amenities ranging from yoga rooms to in-room dining.

The numbers speak for themselves. Today, Marriott International has almost 90 branded residential projects around the world, and we have more than 60 signed and approved projects in the pipeline thanks to growing demand in both city and resort locations. That means we expect our branded residential portfolio to grow by more than 70 percent in four years. 

Three exciting new residential projects scheduled to open over the next 12 months include St. Regis Residences, Amman with 79 branded residences, The Ritz-Carlton Residences, Waikiki Beach Tower 2 with 247 branded residences and EDITION Residences on Sunset Boulevard in West Hollywood, CA, with 20 residences – which are almost sold out.

Buyers are coming from a variety of demographics: urban professionals who want to live in walkable downtown communities, families with grown children who want hassle-free lifestyles and people looking for vacation homes at resort destinations.

Ritz-Carlton, which launched our branded residence concept in 2000, continues to be our most popular residential brand with 35 residential projects open and 15 in the pipeline. St. Regis is gaining momentum with 12 open and 12 in the pipeline, including two properties in Rye, N.Y. and Boston that are not attached to a hotel.

But you might be surprised to know that this segment isn’t just about luxury anymore. Interest is also strong for our premium brands – with about 30 percent of our pipeline portfolio for branded residential featuring premium, non-luxury brands such as Marriott, Sheraton, Westin and Autograph Collection.

Developers say they are getting a premium on branded residences compared to non-branded residences. They tell me they are turning to our brands for experienced development support, comprehensive services and results in the form of price premiums, lender preference, increased sales and long-term value.

Have you considered developing a project? I’m curious to hear your plans.

Note on Forward-Looking Statements: This post contains “forward-looking statements” within the meaning of federal securities laws, including the number of properties Marriott International may add in future years and similar statements concerning possible future events or expectations that are not historical facts. These statements are not guarantees of future performance and are subject to a number of risks and uncertainties, including changes in market conditions; changes in global and regional economies; supply and demand changes for hotel rooms and residential products; competitive conditions in the lodging and real estate industries; relationships with clients, property owners and community associations; the availability of capital to finance growth and refurbishment; and other risk factors that Marriott International identifies in its most recent annual report on Form 10-K or quarterly report on Form 10-Q; any of which could cause actual results to differ materially from the expectations expressed or implied here. These statements are made as of the date of this post, and Marriott International assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.