| | 19HOSPITALITY BUSINESS REVIEWAPRIL 2025and Regent, with a specific emphasis on Regent in the Americas. There are a number of long-term relationships in the ownership and development part of the business, through which we are working on a number of exciting new projects throughout the region. In nearly every scenario, we have found that new construction projects require some form of branded residences to support the investment required for the hotels.How has the concept of branded residences evolved over time?Originating at New York's The Sherry-Netherland in the 1920s, the concept of branded residences gained momentum in the 1990s and has since then garnered significant international attention, most recently in Europe, Asia, and the Middle East. What began as a trend has evolved into a permanent fixture in the high-end hospitality market, and in my mind a requisite for new upper-luxury hotel development. At IHG, most of our current branded residential projects are situated outside of North America, underscoring the international trajectory of this trend. Pioneered by Ritz-Carlton and Four Seasons in the U.S. during the 1990s, the concept has expanded to include a multitude of completed projects with various luxury brands across several industries, including hotel, fashion, and automobile brands, with a notable recent surge in activity outside of the U.S.How do branded residences benefit various stakeholders? Branded residences offer a myriad of advantages for developers, hotel owners, and unit owners alike. For developers, the additional profit gained from building and selling these units is essential to counterbalance the steep costs associated with developing luxury hotels today. An emerging trend is the necessity of more branded residential products relative to the number of hotel rooms to offset the rising cost of luxury hotel construction. Hotel owners benefit from the cost-sharing arrangement with unit owners when operating the mixed-use facility.Additionally, hotel owners can capitalize on incremental cash flow by offering unit owners the option to participate in a rental program, thereby boosting the hotel's inventory and revenue, a particularly advantageous arrangement in resort settings. Unit owners enjoy an elevated level of service provided by the homeowners' association (HOA) as well as the prestige associated with residing in a luxury branded project. For those who opt into rental programs, unit owners benefit from a portion of the rental revenue of their units to offset ownership costs. What is your piece of advice to peers and aspiring professionals in the industry?My advice to peers and aspiring professionals in the industry is to remain persistent and adaptable. Develop a deep understanding of market trends and consumer preferences while consistently prioritizing the delivery of exceptional guest experiences. Foster robust relationships, actively network, and continuously seek opportunities for learning and growth. In this dynamic field, success often arises from a blend of expertise, creativity, and an unwavering dedication to excellence. Success in this dynamic field of luxury hospitality comes from a combination of expertise, creativity, and a relentless commitment to excellence
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