Brand Licensing For Branded Residences
The Brand Licensing Opportunity
Hotel Groups and Luxury Brands
The branded residences sector is one of the fastest growing segments in global luxury real estate, and property developers across every major market are actively seeking brand licensing partnerships for their developments.
Hotel groups have long recognised the commercial opportunity that brand licensing agreements with luxury real estate developers present, and increasingly, luxury, fashion, automotive and lifestyle brands are following.
However, entering this sector requires careful planning, the right positioning and a clear understanding of the commitments involved.
BRESI along with our specialist strategic partner network provide advisory support to brands who wish to enter the branded residences licensing sector, from initial strategy, licensing readiness and market positioning through to legal frameworks and market entry.
The Case for Brand Licensing
Global Growth Without Development Risk
Licensing your brand to a property developer is one of the most capital-efficient ways to grow your brand’s presence globally as well as generate new revenue streams.
- Generate licensing fees and sales royalties with no development capital exposure
- Grow your brand into new geographies and markets
- Strengthen brand prestige through association with world class residential developments
- Build long term brand visibility where your core business has no physical presence
- Access a new and affluent buyer audience
Developer Priorities
What Developers Will Want To Know
Will this brand generate more revenue for my development? A developer needs confidence that the brand association will justify the cost of licensing fees, royalties and brand design standards, and still deliver a stronger commercial outcome than a non-branded development.
Will it sell faster? A strong brand can drive sales momentum, and faster sell outs which gives lenders greater confidence in funding the project.
What will the brand do for me? Developers expect the brand to actively support the marketing and promotion of the project and to demonstrate clearly how its reach and audience will benefit the sales campaign.
Will buyers see and feel this brand throughout the development? A brand logo on a building adds limited value these days. The completed building must genuinely reflect the brand throughout, from interiors and communal spaces to amenities and resident benefits.
Understanding the Licensing Process
Long Term, Complex and High Value
A licensing agreement between a brand and a developer is a long term commercial commitment, typically running between 10 to 15 years, and the terms agreed at the outset have a direct bearing on revenue, brand integrity and legal exposure for the duration of the relationship.
A licensing deal is rarely in a single agreement and the multiple agreements can run to hundreds of pages.
Alongside the primary licence, other common contracts will cover management, technical services, sales royalties, design and legal fees.
Fee models vary, and getting the right structure for your brand and market position requires experience and detailed sector knowledge.
Apart from the financials, agreements must also address brand standards, IP protection, developer and brand obligations, marketing commitments and the brand’s rights throughout the development process and beyond.
Brand Identity and Marketing Reach
Brand Translation and Marketing
A brand entering the branded residences sector must demonstrate two things clearly. That its identity translates authentically into a residential setting across different markets and locations, and that its marketing reach adds real value to the developer’s sales campaign.
Brand Translation. Clearly show that its identity translates credibly into luxury real estate across different markets and environments, from resort and leisure locations to urban and city developments. A licensing strategy limited to one location type could restrict growth and appeal.
Marketing Integration For a developer, the brand’s marketing reach is a core part of the decision making. A brand that can activate its own channels, press relationships and client database in support of a project adds value that goes well beyond the name above the door.
Developers are not just licensing a name, they want to partner with a brand that will actively contribute to the success of the project.
Is Your Brand Ready to License?
What Developers Look for in a Brand
Developers are becoming more selective, and the brands that attract the strongest partnerships share certain characteristics.
- Recognised market presence within a luxury or premium positioning
- A brand identity that translates credibly into a residential setting
- Geographic relevance to the target development market
- The ability to demonstrate design credibility beyond your core product
- Marketing reach and a client network that adds tangible value to a developer’s sales campaign
Understanding where your brand stands against these criteria is the starting point for any serious licensing strategy. It is something BRESI and our partners will assess honestly and objectively from the outset.
How BRESI Can Assist
Expert Support at Every Stage
BRESI and our specialist partner network bring decades of combined experience in the branded residences sector, working directly with hotel companies and brands across all aspects of the licensing process.
- Licensing Readiness
- Brand Assessment
- Licensing Strategy
- Market Positioning
- Marketing Guidance
- Deal Structuring Guidance
- Brand Standards Framework
- Market Intelligence
The information on this page provides a general introduction to brand licensing for branded residences and the services BRESI and our partner network can offer.
We recommend speaking with us directly to understand how we can best support your specific situation. Contact us for more information and to set up a call.
BRESI is the world’s first branded residences marketplace, media platform and development consultancy. Uniquely, BRESI operates as a complete ecosystem for the branded residences sector, connecting buyers, developers and brands across every major global market through its marketplace, news hub and advisory services.
DISCLAIMER: The images featured on this page are used for illustrative purposes only and remain the property of their respective owners. BRESI claims no ownership, copyright or rights over any images displayed. Their inclusion does not imply, suggest or represent any involvement, association or endorsement by BRESI or its partner network with the projects, brands or developments depicted.