A relatively young player of luxury hospitality, Montage International was launched in 2003 at an oceanfront property in Laguna Beach, California. Currently, the brand operates seven hotels in the Americas, all of which are home-grown.
In 2017, the company launched Pendry, a less traditional sibling brand, to appeal to young buyers who are growing in wealth. Pendry’s has six properties in the United States, and branded homes are also an important part of growth.
Montage and Pendry “have a $ 5 billion branded housing portfolio and it’s growing,” said Tinane Krason, Executive Vice President of Housing at Montage International, Mansion Global. “What drives the general real estate market also drives our business. There is both pricing and accelerating strategies to take advantage of what’s happening.”
However, the branded housing business is nothing new to the company. “From the montage flagship hotel in Laguna Beach, every hotel had a residential component,” Neclason said. “It was never an add-on. It’s in our DNA.”
The Montage brand has 7 hotels and 7 homes. The Pendry brand has 6 hotels and 2 homes. Both have an active pipeline. Montage’s includes Residences in Montage Cay, The Bahamas, which will debut in 2024. Pendry will soon open residences in Tampa, Florida and New Jersey.
According to 2021, the global supply of branded homes is expected to nearly double over the next five years. report From real estate agent Savills. According to Savills, the sector has grown 230% over the last decade, with 580 developments from 133 brands, including nearly 100,000 units.
Nekrason spoke globally about wellness demands, changing needs among buyers, and a growing desire for branded homes.
Mansion Global: How do you distinguish between the Montage and Pentry brands?
Tina Neclason: Both are super luxurious. Montage Hotels and Resorts is a sophisticated, sophisticated, unpretentious, personalized classic luxury. Pendry is a new luxury brand for travelers around the world who see the atmosphere and energy of a hotel. It is where service meets design and is another model that provides our service culture. The montage may not fit, but it is for the environment and place with the next generation of luxury travelers and buyers.
MG: Do you see changes in buyers as the branded housing sector evolves?
TN: You can definitely see young buyers of the wealthy and the ultra-rich. Young buyers said, “I’m not going to wait until my kids graduate from school. I have wealth now.” The needs of the family have been re-prioritized. People haven’t forgotten it from the pandemic.
MG: How much is wellness in driving purchase decisions?
TN: It is in people’s hearts and their way of thinking. Expectations do not necessarily mean that it is on top.we [institutional-wellness consultants] Delos has an incredible product for the home. This is one of our advantages for owners who purchase those products and services for all homes, not just us.
MG: Given the post-pandemic work / life patterns, do branded home buyers demand more living space?
TN: Demand from Montage and Pendry buyers has always been for larger homes and homes. It’s hard to sell a small house. In general, our buyers are considering a multi-purpose space and it is a belief that always larger is better. For example, Pendry West Hollywood is in an urban environment, but its living space is designed like a home and has a very large outdoor space.
MG: Pendry has selected Natirar, NJ for a new 500-acre branded housing project. Why that particular market?
TN: There’s nothing like this in New Jersey, where you live a resort-style life like this. We are also building great hotels like modern country manners. Some of our buyers were downsizers with community roots. There are buyers from New York City who make this a weekend retreat.
MG: Non-fashionable brands from Porsche to Diesel to Cipriani are launching branded homes. Are they a meaningful competition for you?
TN: I’m a big Porsche fan. I drive one However, running these homes is not easy. It’s a very different language and discipline. I don’t know how these service requirements will be met. Since I work for a hotel company, I have a department that fulfills my promises and expectations. Remember that people are buying these units for a huge premium.
MG: The world and economy are very uncertain, but what about the outlook for the branded housing market?
TN: Demand for luxury second homes will continue to be strong. Our market is expanding internationally. Even with market volatility, there is no significant slowdown. I think the pricing will be maintained as well. I don’t know if prices will go up, but supply and demand will continue until 2023. Some wealthy people diversify their investments, but this type of investment is in everyone’s portfolio. We can also see that the international market is reviving. It’s incredible how many international buyers are buying in the US right now.
MG: Markets such as Miami, Dubai and London have become hubs for branded housing. Where are Montage and Pendry looking for extensions?
TN: Expanding the global footprint is a major goal for the next 3-5 years, as well as major locations like Manhattan. We are also considering new expansion methods. There are new distribution points where you can buy real estate anywhere, like the Fort Lauderdale Home Gallery. And there is a partial offer that your cost is worth the use.
MG: How do you define luxury?
TN: Luxury can provide a lifestyle that meets the needs and demands of what we see in the market. Every detail is luxurious, including design, service and personalization. That is the meaning of luxury. That’s how it’s personalized to you and provides access to it.
This interview has been edited for length and clarity.