Marriott seeks sharp increase in residential offering

Marriott seeks sharp increase in residential offering

Marriott International has announced its branded residential portfolio is expected to grow by more than 70 per cent in four years as both consumers and residential real estate developers seek homes affiliated with its brands.

With nearly 90 branded residential projects already open, the company has 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.

From gateway cities to emerging markets, Marriott’s brands are flourishing where high-value real estate buyers work and play.

Marriott is the largest branded residential company in the lodging industry.

“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,” said Tony Capuano, global chief officer, Marriott International.

“We are excited to work with world-class developers to help them deliver highly desirable and successful branded residences to market.”

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Fuelling 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 a rich offering of amenities and services.

For buyers, owning a residence bearing one of Marriott International’s luxury brands also means greater assurance that they will have quality services at the ready such as 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.
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.

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 per cent of Marriott International’s branded residential pipeline features premium, non-luxury brands such as Marriott Hotels, Sheraton, Westin and Autograph Collection.