In the latest installment of our Expert Voices series, Jason Payne sits down with Riyan Itani, founder and director of Global Branded Residences (GBR), a leading specialist consultancy in the branded residences sector. Riyan shares insights into GBR’s global operations, the trends that are shaping the branded residences sector, and much more.
JP: Riyan, thank you for taking the time to speak with me today. Could you start by sharing a bit about your background and when you first started in the branded residences sector?
RI: Pleasure to speak with you, Jason. I spent 18 years at Savills in London, providing residential consultancy on mixed-use projects in the UK and abroad. During that time, I worked on over 150 branded residences projects in some of the world’s top destinations.
At the beginning in 2008-9 branded residences were a relatively new concept and the knowledge base for the sector was very much in its infancy.
By applying an international standard of data collection, analysis and recommendations, we managed to appeal to the new wave of private equity houses entering the residential sector.
JP: You launched Global Branded Residences (GBR) an independent consultancy firm specialising in branded residential development advisory services in 2023, what made you take this step?
RI: I had been extensively researching the branded residences sector for 5 years and could see in the data that the sector was in a very rapid process of expansion, as the economic model was better-understood and the concept is now being adopted by more and more developers worldwide.
What there lacked was a fully-specialised branded residences consultancy firm, functioning at a global level. A firm that was dedicated to going deeper and broader into the subject matter than any other consultancy provider.
JP: Global Branded Residences is described as a market-driven consultancy specialising in branded residential projects worldwide. What sets GBR apart from other consultancies in the branded residence sector?
RI: Yes, data is the foundation of everything we do. We believe in data-driven recommendations and development strategies, so we spend a lot of time doing first-hand research not only into the specific market where a project is related but also at a global level.
We produce a quarterly report on the industry, The GBR Q Report, that is only one quarter in arrears, so the most up to date insights on the state of the branded residences sector.
Finally, we have the most comprehensive database of every branded residences project in the world, and we research everything from the number of units to the sqm of their swimming pool.
We have a team of four researchers based in Switzerland that are solely dedicated to researching every branded residences project in the world.
JP: How does GBR leverage data to ensure the success of its clients’ projects during the planning, pre-construction and sales phases?
RI: We base our development recommendations on market data in country and also on prevalent trends at a global and regional level. This could be relating to the unit mix, unit sizing, sizing and range of amenities and services.
Each SQM of construction does not yield the same return so our aim is to highlight the optimal (not maximum) composition and pricing of the project to ensure maximum return for the developer.
JP: GBR assists clients with brand selection and negotiation. What key factors do you consider when recommending a branding or operating partner, and what are the most common mistakes that developers can make when choosing a brand?
RI: Choosing the optimal branding partner is a balancing act between the aspiration of the developer, the appetite of the brand/operator to be in that location and the resonance of the brand with the purchasing market.
There are many reasons why an operator or brand will not be willing or able to partner on a project – it may not be a strategically important destination for the brand, they may have contractual restrictions on their ability to do another project in that location or they may not have a hotel operating in that location.
As a result, some developers may not be able to secure the brand that they had hoped for!
Other common mistakes are a misalignment of the location and the brand. Having a luxury brand in a secondary location can often overprice a product beyond the capacity of the market.
Equally, not aligning the pricing of the product and the motivations of purchasers – for example, if the buyers are motivated by investment, then pricing the product as a trophy asset will result in very slow absorption rates.
JP: In a very short period of time aided no doubt by your reputation, Global Branded Residences has become one of the go to consultancies in the sector. You have also expanded quickly with a very strong team under you, what are the key reasons for this success and fast growth?
RI: The main reason was the response from the development community to working with a specialised advisory firm who are explicit in their area of expertise. This provides closer client care and more dedicated resourcing to each project.
We also go to a great deal detail in our Strategic Consultancy reports, which is often a pleasant surprise for our clients, who go on to recommend GBR to their contacts.
Finally, we have a global horizon so are always busy somewhere in the world. Our team are super dedicated, intelligent and diligent professionals and I cannot be more proud of what we have achieved so far!
JP: We are starting to see 1 or 2 headlines about market saturation which I personally do not agree with, especially when you consider that outside of say the top 5, most other cities are under represented for projects. What are your thoughts on this, and where do you see as the next prime hotspot cities?
RI: I would agree that only Dubai and Miami could be considered to be anywhere near saturation. Dubai has 149 projects (58 existing and 91 in the pipeline), Miami has 73 projects (36 existing and 37 in the pipeline), New York, in third place globally, has 36 (34 existing and 2 pipeline).
So you can see that the numbers drop quickly, even within the top three cities.
The new emerging hot spots include Sao Paolo, Cairo, Phuket, Los Cabos and Istanbul, where the pipeline of developments is set to increase by 70-100%+ of existing stock.
JP: Do you have any concerns about where the sector is heading, and where do you personally see it in the next 5-10 years?
RI: With the sector due to almost double in size over the forecast period, new and exciting brands entering the market and projects being delivered in new territories, the future of the sector is extremely promising and will be typified by geographical expansion, consolidation of the model in the development community and innovation in brands, as well as the services and amenities that are being provided.
JP: What are your thoughts on standalone branded residences which seem to be a focus for hotel brands currently, and also the continued growth of non hospitality brands, they divide opinion?
RI: Standalone development (not including a hotel element, even if branded by a hotel brand) are on the rise as well in the development pipeline. These types of developments account for 33% of the existing market of branded projects, however the pipeline of branded projects in the next five years will comprise of 38% standalone projects.
Non-hotel brands currently account for 24% of the global market of branded projects and are forecast to stay at that level at present. In certain markets, the appeal of non-hotel brands can be as strong as traditional hotel brands, especially when the developer also provides comparable amenities, management and servicing.
This is, unfortunately, not always the case and is not generally a requirement of non-hotel brands. In the case where lifestyle, amenities and management are not provided, the results can definitely be perceived as more superficial and ‘design-driven’.
JP: You will be in Bangkok for the Branded Residences Forum Asia on 25th June, will you be available for informal chats, with developers who are considering developing branded residences?
RI: Definitely – We are very excited to attend and contribute to the Branded Residences Forum Asia. We have team members in Singapore and Asia Pacific is a major focus for GBR!
GBR is company with a global horizon and so we very much look forward to meeting developers, investors, land owners, brands and operators with interesting opportunities to develop branded residences in the Asia Pacific region.
JP: It’s time for you to retire and you can live in any branded residence in the world, past, present or in the future, what and where do you choose, and what over the top luxury could you not live without?
RI: Wow – difficult question! I think I would choose somewhere that was warm and tropical rather than urban. I am a big fan of the One&Only Mandarina in Mexico. The architecture and how it sits within nature is truly magnificent and then add to that One&Only’s understanding on luxury service, calmness and community!
I do love a private plunge pool – while sometimes it can be fun to be in a large shared pool, relaxing in your own space with a great view is a real treat!
JP: An extremely successful developer that you have never worked with before approaches you with an outlandish idea for the companies last ever project, all of the data points show that the project is like to fail but by working with them you are guaranteed a huge amount of new clients. Do you:
- Go against your better judgement and work with them, because the developer has never failed before?
- Politely decline citing your data and reasoning?
- Hand the client to your biggest competitor, who you have no respect for?
RI: As much as I would love huge amounts of new clients, our reputation and professional standards are our true measure, so I would have to go with number 2, politely decline and wish them the best of luck!
Riyan Itani this was great, many thanks for your time
More About Global Branded Residences (GBR)
Founded by Riyan Itani, former Head of Global Residential Development Consultancy at Savills, Global Branded Residences is a dedicated consultancy firm specialising in a range of branded residential development advisory services, operator selection & negotiation and transactional services.
With 20 years of experience advising on some of the world’s most iconic and landmark branded developments, GBR brings a data-driven approach to the conceptualisation, composition and structuring of branded residential projects around the world.
The GBR ethos is based on market and data-driven consultancy to ensure our clients’ projects are optimised at a pre-construction stage in order to achieve a successful sales and marketing phase.
We have a global remit and a global perspective, ensuring our clients understand not only the local market dynamics but also the regional and global competitive landscape they are operating in.
We work to balance our clients’ development strategy and their exit horizon by recommending the optimal branding / operating partners, development strategy, residential composition and unit pricing.
Through this tried-and-tested approach, GBR consultancy ensures the expectations of the identified market of purchasers are met effectively and cost-efficiently. Visit GBR
