BETHESDA, Md.—Marriott International has announced plans to grow its branded residential portfolio by more than 70 percent in four years as both consumers and residential real estate developers seek branded residences such as Ritz-Carlton, St. Regis, EDITION, and W in locations like Mexico, Malaysia, Boston, and Bangkok.
The largest branded residential company in the lodging industry, Marriott has nearly 90 branded residential projects already open and a pipeline of more than 60 additional signed and approved projects in locations ranging from resort destinations to gateway cities. In 2017 alone, the company signed 13 branded residential projects–setting an annual record.
“As the number of residential condominium buyers grows globally, Marriott International’s well-known brands are ready to welcome them ‘home’ and deliver a distinct experience,” says Tony Capuano, executive vice president and global chief development officer, Marriott International. “We are excited to work with world-class developers to help them deliver highly desirable and successful branded residences to market.”
Increasing Consumer Demand for Branded Residences
Fueling demand for branded residences is a confluence of consumer trends such as evolving demographics worldwide and an elevated desire to live in walkable, mixed-use communities with amenities and services. For buyers, owning a residence with one of Marriott International’s luxury brands comes with services, concierge assistance, housekeeping, in-room dining, spa, and fitness facilities.
“Residential developers know that we are not just involved with creating a beautiful luxury residential project with a compelling list of amenities and services,” said Capuano. “We’re also laser-focused on creating dynamic communities where people can enjoy a convenient lifestyle and personalize their experiences–just as they do in our hotels, which is why Marriott International expects growth in this segment to continue.”
Branded residences are usually part of larger, mixed-use developments that include a hotel of the same brand. But increasingly, Marriott International is seeing an uptick in signings for residential-only projects that do not involve an adjoining hotel. In May, for example, construction began on the St. Regis brand’s first residential-only project in Rye, NY, and in July, Marriott International signed a contract for a second St. Regis residential-only tower in Boston.
Luxury Brands Are Leading the Way, and Others Are Following
Underscoring the demand for the luxury lifestyle, Marriott International’s Ritz-Carlton brand continues to be the company’s most popular for branded residences with 35 projects open and 15 in the pipeline. St. Regis is gaining momentum with 12 open and 12 in the pipeline. By 2022, about 70 percent of the company’s branded residential properties are expected to involve one of Marriott International’s luxury brands.
Future growth data, however, shows that this segment isn’t just for luxury seekers anymore. About 30 percent of Marriott International’s branded residential pipeline features premium, non-luxury brands such as Marriott Hotels, Sheraton, Westin, and Autograph Collection.
Demand for Branded Residences Grows Around the World
With most open branded residential projects located in the United States, the company also currently operates residential projects in 17 other countries and territories and is expanding its international portfolio. By 2022, Marriott International expects to have open branded residential projects in nearly 40 countries and territories. The company plans to open 19 branded residential projects in nine countries in 2018 and 2019, including a residential-only Ritz-Carlton project with 211 luxury residences in South Florida’s Sunny Isles Beach, expected to open next year.
The company opened its first branded residences in 2000 under the Ritz-Carlton brand and has been expanding ever since, especially after Marriott acquired Starwood Hotels and Resorts along with its St. Regis and W brands. Since the Starwood transaction closed in 2016, Marriott International has signed nine branded residential projects involving legacy Starwood brands such as St. Regis, W, and Sheraton.
Top photo: A residential-only Ritz-Carlton project with 211 luxury residences in South Florida’s Sunny Isles Beach, expected to open next year.