This Week's BLLA Commentary
The Convergence of All Things Luxury
The idea of residences in a lifestyle hotel just makes sense. Who wouldn’t want all the offerings of their favorite resort, spa, or hotel brand in their home?
Although the concept of mixed-use hotel is not a novel one, the renewed vibrancy in the boutique and lifestyle sector of the hospitality sphere is seeing a new focus on branded luxury offerings.
In 2016 Daniela Aroche reported “According to Dan August Cordeiro at Maxmakers, a property development advisory firm, the number of hotels offering branded residences increased tenfold during the decade to 2012. The evidence suggests that the rate looks set to continue to rise in line with growing consumer demand…” Well, we are two years down the line and that finding has proven more than true.
Among a plethora of other cutting edge trends, the boutique sector is responsible for this convergence off all things luxury. The opportunity for hoteliers and hospitality professionals to capitalize on the merging of consumer markets has really only just begun.
Boutique Hotels are tapping into new revenue streams and innovative ways of raising property value. Branded residences have the prestige and legacy that comes with being a respected luxury label. Following the successful launch of their furniture and home collection, fashion house turned full-blown lifestyle brand, Armani now boasts multiple fashion lines, home decor and furniture, branded hotels and residences, a florist and even a confectionery. The convergence of all of these offerings makes sense when you survey the habits and preferences of the travelers of today. “Condo hotels are hot once again after a cool period following the Great Recession. They follow the huge current market trend of big name desirability for new developments.” says Kaya Wittenburg for Sky Five Properties.
The sentiments echoed by those in tune with the recent paradigm shift only reassure the trajectory of the movement. Branded residences aren't stopping anytime soon. The keenest of investors are in on the wave.
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