The alliance of luxury home developers with world-known five-star hotels resulted in the creation of branded hotel residencies. At the same time, branded residences offer all the perks of a high-class hotel but provide the comfort and stability of a home. All the benefits associated with them are available to developers, hoteliers, and residence owners but also wider local communities. In other words, these luxury residences offer the excellence, reliability, and recognition of a hotel brand they’re affiliated with to all interested parties. Reasons to invest in branded hotel residences rest exactly on these advantages.
Branded hotel residences benefit all the parties involved
The idea of branded hotel residences has grown swiftly in the last two decades, mostly because it has been propelled by developers, investors, and potential homeowners, due to its undeniable appeal. Local governments in Central America have recognized the opportunities coming with these projects and are open to negotiations with interested home developers.
Caption: An influx of capital improves the living standard of the local community.
Branded home residences base their speedy evolution on their sustainability and owe their popularity to the fact that all four parties benefit from the qualities of hotel-branded homes in their specific way.
From the perspective of homeowners
With a growing number of Americans living abroad (especially in Central America), the demand for elegant, comfortable, and “affordable luxury” residences in a tropical paradise such as Belize arose. Once we add the tourists’, buyers’, and renters’ natural need to invest in reliable and well-known products, it is only logical that these branded luxurious homes have found an easy way into Belize’s real estate market.
When it comes to home buyers and renters, branded hotel residences provide
- The reputation of the world-famous hotel brand guarantees quality.
- High ROI. Rental income and appreciation are even greater compared to unbranded luxury homes thanks to the hotel’s prominence.
- Professional management. From housekeeping, concierge services, childcare, pet care, and room service to property maintenance.
- Access to high-class amenities. Signature services and facilities are available non-stop.
- Status symbol. As with all luxury commodities, branded home residences provide the next-level trophy status to their owners.
- Hotel-related benefits. Operators often provide benefits for branded hotel residence owners in their other properties worldwide.
Another favorable feature of branded hotel residences is their relative affordability, especially when we consider available financing opportunities. Luxury for the masses is not a new concept, however. Over time, it has proven that it benefits not only the customers but also the exclusive hotel brands.
An advantageous deal for hoteliers/operators
For a leading hotel brand, luxury residences offer the chance to enter new markets, establish stronger customer relations, and diversify and refresh their offer. A benefit to hoteliers that comes with access to new locations is an expansion of their customer base. They also elevate their brand to another level of operation by making an exclusive hotel experience into an attainable lifestyle.
Alt. text: Golf carts parked near the tropical waters of Ambergris Caye.
However, to build more solid customer relationships, branded hotels are invited to add value through experience. It is precisely this home-sweet-home feel that makes the difference. Investment in branded hotel residences offers hoteliers a chance to keep their signature services and create a lasting emotional link with customers. Just as customers search for low-risk investment options, hoteliers do, too. In the case of branded hotel residences, the risks of seasonal variations are greatly reduced. Without cyclical variations, there’s space for more significant revenue.
Gains for luxury home developers
When luxury homes developers have compared branded to unbranded residences, they’ve realized they could claim premiums in prime locations worldwide by merely associating with the famous hotel brands. When it comes to brand royalty rates (royalty fees, licenses) for developers, they tend to be affordable and negotiable as they benefit both residence developers and hotel operators.
Most of the time, the use of a brand name generously returns the investment. Speaking of investments, if you plan to team up with a branded hotel and move your existing enterprise to a more exotic location, know that there are services designed for this industry that can save you from needless expenses, delays, and risks. Finally, luxury home developers also benefit from the resources branded hotels bring into the deal apart from their name. Often, these involve in-house experts, like marketing specialists or renowned designers.
Development of local communities
When renowned hotel brands and luxury home developers are partnering, local communities are presented with multiple gains. Facilities included within these luxury residences provide jobs for the local workforce along with necessary training. Construction of branded hotel residences follows investments in modern infrastructure and cutting-edge technology, which benefits the development of the community itself. An influx of capital, in general, improves the living standard of the locals, especially when we consider that these residences are often located in desirable but still underdeveloped locations off the tourist grid.
A few final notes
When hotel brands get involved in a project, they provide instantaneous visibility, raise premiums, and put obscure residential areas into the spotlight. Those who choose to work with branded hotels or invest in branded hotel residences are financing a sustainable business. Although this project asks for higher initial investments, it offers high returns over a long period with minimal risk.
Hence, it doesn’t surprise much that branded hotel residences are spreading across the world. They are expanding in growing markets in Europe, Asia, and Central and Latin America. With everything that Belize has to offer, it is a small wonder it attracted Marriott. And thanks to them, branded hotel residences will undoubtedly attract new residents and investors to this hidden, central American gem.
Author bio
Michelle Morgan is a travel, moving, and real estate blogger and a long-time content writer for promoversmiami.com. “Always on the move” is her motto, as there are so many places to discover and cultures to experience.
