- Hotel Apartments
- Staff Writer
- Contribution Jason Payne BR Asia
Of course, you definitely can! The more detailed explanation is a bit more complex, and we will delve into it, in this article.
Hotel apartments as a permanent residence are more commonly known in the industry as “branded residences” they are not a one size fits all, we will explain the differences, the benefits of ownership, and potential warning signs to look out for.
What is a Branded Residence?
Simply put, they are condos, apartments, villas, and residences for sale, typically branded with luxury hotel names like Rosewood, Four Seasons, Marriott, and Mandarin Oriental.
Recently, non-hospitality companies such as FENDI, Armani, Aston Martin, and Mercedes Benz have also begun to lend their names to luxury real estate projects.
These projects are normally in the elite category of real estate, and offer far greater ownership benefits than a development that is not branded.
In most circumstances, the homes are managed by the branding partner, most have onsite hotels and therefore the homeowner has access to all the services expected from a luxury hotel, but not always, so let’s go a bit deeper.
Hotel & Managed Branded Residences
This is perhaps the most exclusive ownership model for hotel apartments and residences. The real estate developer has agreed to construct and develop both a hotel and residences, that can be bought by individual property buyers.
The development could consist of a single building with a hotel, for guests and several floors dedicated to residences for home ownership, or there could be separate hotel and residences buildings.
In either case, the entire development, including rooms, services, facilities, and communal grounds, is managed and maintained by the hotel company.
Normally in this model there will be certain facilities and areas that are exclusively for residence owners that hotel guests cannot access, any in most circumstances all other facilities will be shared.
Standalone Hotel Branded
This model is becoming more popular and a very exclusive way of owning a hotel apartment or residence as a permanent home.
The developer signs a full management and licence agreement with a hotel brand, with the agreement that the residential project will not only carry the name of the hotel company, but that it will meet the standards of the brand. There will be no onsite hotel, and it is purely real estate only.
The hotel brand will manage daily operations of the entire development, as if it was a hotel, but exclusively for residential homeowners.
In many ways owning a standalone hotel branded residence can be extremely beneficial, because as a homeowner you do not have to live alongside hotel guests. The development is purely residential but with the added benefits of being managed and maintained by the worlds finest names in hospitality.
Non Hospitality Branded
Owning a home that is non hospitality branded is where things begin to change, but remain an excellent ownership model.
Normally these projects are designed by the developer, with assistance from designers from within the brand. These can be standalone projects but also some have hotels onsite.
They can be extremely sought after developments, imagine a project designed by the team at Aston Martin or FENDI, or the interiors of the residences being fitted out with furniture and design of ARMANI.
It is important to understand that non hospitality brands will be heavily involved in the projects design, facilities, and interior furnishings which should guarantee a stunning home.
However when it comes to who will manage the project upon completion, this will be normally handled by a 3rd party management company chosen by the developer.
Franchise Branded
As the name suggests the property developer will sign a franchise agreement with a brand or hotel for naming rights for their development. This is potentially the least appealing option for a homebuyer.
We are not saying it is a bad ownership model, but it does require additional due diligence.
Under a franchise model, it is very much up to the developer along with the franchise agreement details on how the development will be managed and run.
In most circumstances certain brand standards will normally have to be met to protect the brand name, but the project will normally then be run and managed by the developer, in many ways simply like a non branded property.
Therefore, it becomes very project specific, as far as services, facilities and management standards that will be offered.
Some questions to be asked here would be, who is managing the complex on completion, who is responsible for maintenance, how long is the franchise agreement, is there extension/renewal option for the agreement and who would pay for this?
Summary
The above information is a general overview, of the types of hotel apartments, branded residences, hotel residences and luxury branded homes. They all differ and are project specific, when it comes to facilities, services provided, design and management on completion.
In general all options can be an excellent investment, and we hope it it answers the question of “Can You Buy a Hotel Room and Make it Your Home?
Branded residences are world class properties in the main, and are likely to offer wonderful lifestyle options, along with a potential for capital appreciation. They can be a great real estate purchase, for those who are looking to buy the best real estate in the world.
We strongly recommend, (like anyone would do for any real estate purchase) to conduct strong due diligence and employ the services of a lawyer who specialises in hotel apartment, branded residence and hotel residences contracts to assist you with the purchase.
Thanks for reading!!
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