Despite the recession and flirting of the US economy, the luxury real estate market continues to skyrocket, and home shoppers who are enthusiastic about the means continue to steal inventory. Rather than waiting years to build a home in the face of labor shortages and supply chain problems, many buyers are looking for a reliable builder of turnkey properties that they can buy right away.
New home developments built by renowned hoteliers such as The St. Regis, Four Seasons, and Ritz-Carlton are seeing their list undermined. The world of luxury travel is still recovering from a two-year pandemic slowdown, so the mind behind these famous destination properties is seeing opportunities.
John Paul Perez, president of the global home developer association group, has confirmed in recent years that the hotel’s top flags have been more focused on their home products. Still, he sees that the range of houses above hotel rooms tends to vary from region to region.
“It really comes down to a particular market,” Perez said. “Hospitality in Newyork and Las Vegas [within hotels] It still reigns best. But in Miami, there’s a big shift to a complete housing experience. “
Taking the Miami market as an example, Perez explained that in the last 18 months, the Ritz-Carlton, Nomad Hotel and The St. Regis have all invested in new developments without hotel components. He believes that reaching more residential spaces is the result of the brand’s efforts to provide customers with more choice and flexibility.
Prices start at $ 1.5 million, Skyvillas start at $ 15 million to $ 19 million, and penthouse units start at $ 24 million, according to Ritz-Carlton Miami Residence sales materials.
“Some consumers prefer to preserve the hotel lifestyle for special weekends and vacations, while others really want to be absorbed and live full-time,” he added.
The living space of a well-known brand is always valuable, but Perez believes that Covid-19 is the main driver of today’s high-end luxury development.
“It’s undeniable that the hospitality was hit hard at the beginning of the pandemic,” he said. “Travel is certainly back, but hotel companies believe the housing market is a strong revenue driver.”
Hotel owner adjusting portfolio
Dana Jacobsohn is the Chief Development Officer of The St. Regis Parents, Marriott’s US Luxury Brands and Global Mixed-Use. She said the company is always aiming to expand its hotel portfolio while planning residential spaces on a case-by-case basis.
“For each transaction, a team of in-house feasibility experts evaluate the project to determine if the hotel is suitable for its development,” explained Jacobsohn. “The team will investigate site, historical and potential market demand, and existing and expected supply of Marriott hotels and competitive hotels in the region.”
According to Jacobson, Marriott currently has 17 operational projects that include only branded housing components and more than 25 projects in the pipeline.
At Four Seasons Hotels and Resorts, hotel rooms aren’t getting smaller, and condominiums and related spaces are increasing. Ricardo Suarez, senior vice president of brand development in the Americas, said one was simply adding to the other.
“Our hotel isn’t always smaller,” Suarez said. “As we expand globally in new markets, housing remains a priority throughout the pipeline. We don’t reduce hotel keys to increase the number of residential areas available for sale. Rather, what is it for the local market? It evaluates whether it is correct. “
According to Suarez, Four Seasons and its development partners have closed $ 10 billion worth of branded real estate over the last three decades. However, its five-year plan includes another $ 7 billion pipeline that is currently on the market or ready for launch. Its accelerated growth follows shortly after the consumer shift to more space, secured equipment, comfort and safety.
“The direct result of this shift is the growth of the stand-alone housing business, including a recently announced project on Lake Austin. [Texas] We have started development in Dubai, and recently in Los Angeles, San Francisco and Marrakech, “says Suarez. “We believe that home demand is rising as homebuyers own the Four Seasons lifestyle and show an unparalleled interest in living.”
Homes on Lake Austin start at $ 4 million and offer in Dubai start at $ 3 million, according to Four Seasons sales outlets.
According to Suarez, in mid-2022, the overwhelming majority of Four Seasons pipelines will have residential components.
“We need a strategic, long-term vision and a strong partnership with a development partner who can deliver the type of products and experience that transcends the immediate market and creates unique products with lasting value,” he said. Told. “Four Seasons has also significantly expanded into independent residential properties with many existing ownership groups adding pure housing products to their development portfolio.”
Ryan Melconian is the founder and managing partner of Manhattan-based Melconian Capital, working with Mandarin Oriental to provide high-end housing. He believes the hotel brand will continue to focus on home development as the pandemic has helped people assess how they spend their time at home and how they can improve their lifestyle.
“Luxury real estate is so hot right now that I think more hotels will be adding housing to their hotels,” Melconian said. “Wealthy homebuyers looking for a second or third home, or what we call a joint primary, will be fascinated by the offer of branded homes. This is more than a key. I needed a property for. “
Like other developers trying to balance hotel demand with real estate revenue, Melconian said his company continues to rely on the location of real estate and the need for luxury homes in its market. Said.
Craig Studnicky, co-founder and CEO of Miami-based International Sales Group, emphasized that the hotel brand’s major homes will become more popular as their name recognition distinguishes them from unbranded and independent projects. did.
“The St. Regis, Four Seasons, Ritz-Carlton, and Waldorf Astoria are all curated by hotel owners who know how to make their luxury life consistent and reliable when buying on these projects. Imagine a spoiled life, “said St. Nicky.
Stadnicky has to choose that many real estate developers are obsessed with well-known home brands. It points to Miami, Florida and Fort Lauderdale as examples, given the soaring prices of lots, labor and building materials.
“In South Florida, land prices are higher than ever and construction costs are higher than ever,” he explained. “Developers need to sell at the highest price per foot in order to make economic sense in high-rise projects. The only way to sell at that tier is to use the 5-star hotel brand. is.”