The rise of hotel-branded residences

The experience of luxury is something developers and hoteliers around the world are increasingly trying to capture. It could be the comfort of the lobby, the skyline views from the rooftop pool or the indulgences of room service.

More often than not, it’s all of these things and more. The result is hotel-branded residences, which brings the best of new apartments and five-star hotels together. 

The concept, while not new in global markets, will soon come to Melbourne with developer Riverlee constructing Seafarers Residences on the northern bank of the Yarra River.

The 123 residences will sit above Australia’s first 1 Hotel, which is inspired by nature and sustainable living. 1 Hotel Melbourne will house 277 guest rooms as well as a 800-seat function centre and lobby bar. 

While many new apartments spruik the benefits of  “hotel-style living”, hotel-branded residences such as Seafarers go a step further, says Brett Griffith, Colliers International Melbourne residential director.

“Branded residences are a concept that’s hotel-led, not residentially-led,” he says. “So, the main difference is the residents benefit from the hotel brand and obviously the better the brand, the higher the quality that we see.

“You also get the benefit of the management of the hotel, which carries over into the residences, and most importantly, the services. In essence, it gives the owner the comfort and permanence of a home, but with the full benefits of a five-star luxury hotel.”

These services are perhaps the biggest drawcard for home buyers looking for ultimate luxury. At Seafarers, residents can choose from a long list of amenities organised and managed by 1 Hotel. 

These include a 24-hour concierge, a wellness centre with day spa, swimming pool, sauna and fitness centre. And, with flexible working set to continue post pandemic, residents will also be able to access the hotel’s various business facilities and meeting rooms, equipped with video-conferencing facilities, for the ultimate working from home set-up.  

On top of that, there are services to meet every need: private catering, pantry stocking, personal shopping, botanical care, pet services, dry cleaning, in-room dining, housekeeping, massage, personal training and beauty treatments.

Like other hotel-branded residences, Seafarers is likely to appeal to global travellers who are time poor and brand conscious.

The amenities available at the riverfront residences will also be a drawcard for those looking to recreate high-end hotel experiences on a daily basis, says Griffith. 

“When you walk into a five star hotel you feel amazing, that’s why we all travel,” he says. “The branded residence is an attempt to replicate that experience, so it’s like staying in a five-star hotel every day of the week.”

The Sherry-Netherland, which came to New York in 1927, is credited with being the first branded residence in the world. The 38-storey building on prestigious Fifth Avenue houses 165 apartments and 50 hotel suites.

The idea of a luxury lifestyle led through a hotel-branded residence took flight in the ’80s with the Four Seasons opening its first private residences in Boston in 1985 and the Amanpuri in Thailand launching in 1988.

The sector has since boomed and more than 400 branded residences, including Crown’s Barangaroo in Sydney, can now be found in more than 60 countries, according to recent reports.

What’s more, international research points to many more branded residences in the pipeline with Dubai set to outrank New York as the global branded residence capital of the world. 

Dubai is home to the Royal Atlantis Resort and Residences, which is built on one three artificial islands known as The Palm, and features ocean views all around. Residents there can order meals made by some of the world’s best chefs such as Heston Blumenthal and some of the two to five bedroom homes offer private pools, including sky pools. 

New York, still the classic location for branded residences, is home to many iconic addresses including Midtown’s Baccarat Hotel and Residences, where the penthouse sold for more than $42 million in 2016.

Miami ranks third behind Dubai and New York, while cities in Thailand, Vietnam and Mexico are fast emerging as popular destinations.