The branded residences licensing sector is no longer the exclusive territory of the world’s leading hotel companies, more than 90 non-hospitality brands are now active with more than 30 new brands entering the market in the last 18 months.
Brand licensing in luxury real estate offers brands across a wide range of industries the opportunity to generate substantial revenue through licensing fees and royalties, access to a new and affluent global audience, increased brand awareness and the opportunity to introduce the brand to an entirely new customer base.
Market Growth of Non-Hospitality Brands
Fashion houses, automotive brands, lifestyle and wellness companies, design studios, food & beverage groups, media outlets and even major sports teams are all licensing their brand IP to property developers, through branded residences.
The opportunity is strong, but before you announce to the world that your brand is entering the sector, or approach a single developer or branded residences advisor, there are some critical considerations to address first.
Branded residences are complicated and entering this sector requires caution and careful planning.
Choose the Right Entry Point
As most consumer brands have no background in hospitality and hotel management, standalone branded residential projects (no onsite hotel) are the natural and most practical entry point. They allow the brand to influence the project through its brand appeal and design language.
Luxury consumer brands such as Tonino Lamborghini, Armani and ELIE SAAB to name but a few have all built strong portfolios of standalone residential projects with experienced property developers before moving into mixed use hotel and residences developments.
Understand What Property Developers Are Looking For and Need From a Brand Partner
Before approaching property developers or branded residences advisors, a brand must have a clear and thorough understanding of the sector, its own positioning within it and what it can genuinely offer a developer.
A property developer will only license a brand if they are convinced it will deliver clear and measurable benefits to their project.
A developer will be asking and wanting to know whether your brand will help them:
- Achieve a higher price premium
- Sell faster and reduce overall development risk
- Strengthen the project’s reputation and market positioning
- Gain greater public exposure and media attention
- Access a new and affluent buyer audience
- Differentiate the development in an increasingly competitive market
What Every Brand Needs to Have in Place
Entering the branded residences licensing sector requires much more than a basic understanding of the opportunity it presents.
In a competitive and continually expanding sector, preparation is everything. A property developer or branded residences development advisory presented with two potential brand partners will always favour the brand that can show it is fully prepared with systems in place, legally structured and commercially ready.
This means having the legal frameworks in place, a comprehensive pitch deck prepared, marketing materials developed, a professional web presence established and a clear operational plan.
By fully addressing the information below it demonstrates to a property developer that the brand is serious about being part of the market.
Brand History and Journey
- Brand heritage, positioning and values
- Global brand recognition and awareness
- Key brand selling points
Design Brand Standards
- Proof of design credibility beyond the brand’s core product or service category
- Concept renders or mood boards for different residential spaces
- The brand’s signature design language including materials, palettes and themes
- How the brand identity works across different location types, urban, city, beach, resort and leisure
- How the brand’s design language can be incorporated throughout the development, including the homes interiors, lobby, residents lounges, fitness areas, and gardens.
- It is critical that the completed building reflects the actual look and feel of the brand and not just in name only.
Licensing and Fee Structures
- What the licence includes, design, marketing and sales support
- Fee model options including flat licence, per unit royalty or percentage of gross project value
- How the brand is positioned in the market relative to comparable licensing brands in terms of fees and value delivered to the developer
- Potential ongoing post-completion fees
- Licence terms and length of contract
Brand Protection and Standards
- IP protection clauses
- Termination conditions
- Brand design standards framework covering non-negotiable and flexible elements
Operations, Amenities and Brand Integration
- Services and lifestyle benefits for residents
- Brand events and ownership benefit programmes
- Retail integration opportunities
- How brand assets and accessories can be incorporated into the development
Pre-Sales and Ongoing Marketing Support
- Active role in the sales campaign
- Access to the brand’s client database and VIP network
- Use of flagship stores or brand venues as sales launch locations
PR and Communications Strategy
- Partnership announcements and project promotion plans
- Media relationships and press access
Branded Residences Licensing: Seek Expert Professional Advice
The quality of a brand’s preparation will directly influence the quality of the developer partnerships it is able to attract. Before approaching developers or entering any licensing conversation, brands should seek professional advice from advisors with direct experience of how these deals are structured, negotiated and managed.
BRESI and our specialist partner network work directly with brands wishing to enter the branded residences sector, across all aspects of the licensing process, from initial readiness assessment and strategy through to market entry.
To find out more about how BRESI can assist your brand, visit our Brand Licensing for Branded Residences page.
About BRESI
BRESI is the world’s first branded residences marketplace, media platform and development consultancy. Operating as a complete ecosystem for the sector, BRESI connects buyers, developers and brands across every major global market through its marketplace, news hub, development advisory, brand licensing and marketing services.
For more information visit https://brandedresi.com/about/
