'While the concept was introduced globally over four decades ago, branded residences have taken off now in India.'
Hospitality companies in India have identified branded residences as the next avenue of growth.
Demand in the growing segment is fast outpacing supply, prompting hospitality giants from international chain Marriott to the homegrown Indian Hotels Company Ltd (IHCL) to strengthen their presence.
A branded residence is typically a mixed-use project that builds residential properties often in conjunction with a traditional hotel.
The entire project (hotel and residence included) is then branded and managed by a company, often a hotel operator.
"Apart from the luxury and midscale segments, I firmly believe that branded residences will gain traction. That is how the market is evolving, and we are going to do more of it now,' Puneet Chhatwal, MD and CEO, IHCL told Business Standard.
The parent of Taj Hotels, IHCL will launch the Taj Sky View Hotel & Residences in Chennai -- an integrated development comprising a 253-key hotel and 123 Taj-branded residences.
"While the concept was introduced globally over four decades ago, in India, branded residences have taken off now, especially in the last four-to-five years, as more homebuyers move towards luxury offerings," said Anshuman Magazine, chairman and CEO, India, Southeast Asia, Middle East & Africa at real estate firm CBRE.
Amid changing customer preferences and an expanding economy, the demand for luxury residences has been outpacing the supply, he further said, adding that such projects by hospitality giants come with an assumed assurance of quality.
"Typically priced at a premium of 20-30 per cent as compared to the luxury segment, they are currently largely concentrated in metro cities. However, as tourism and income levels rise in Tier-II cities, branded residences are likely to emerge there as well," he added.
IHCL also recently tied up with the Ambuja Neotia group for 15 new hotels, a few of which will also include Taj-branded villas in destinations like Darjeeling, Sikkim, Lataguri and Raichak.
Earlier this year, Delhi-NCR-based Whiteland Corporation announced the launch of Marriott International's first Westin-branded residences in India in Gurugram, expected to be completed by 2031.
These standalone branded residences -- a 20-acre development -- will include 1,700 three- and four-BHK residences, ranging from 2,673 square feet to 4,328 sq ft.
According to people in the know, the price range for The Westin Residences, Gurugram, is between ₹6 crore and ₹12 crore, depending on size, configuration, and location within the development.
Thailand-based Minor Hotels, too, is foraying into the segment with their brand Avani.
A 117-key beach resort property at Sunray beach in Visakhapatnam along with 58 branded villas are set to come up by 2028, the company said earlier this year.
In Bengaluru, the Prestige group collaborated with 7-star Hotel Leela Venture to build Prestige Leela residences in the city.
The Embassy group, meanwhile, has a joint project with the Four Seasons group for private residences with access to hotel services for residents.
'There has been a structural shift in the expectations of ultra-luxury homebuyers in India, shaped by a growing aspiration for global living standards and holistic wellbeing. Features like round-the-clock concierge services, hospitality-inspired residencies, world-class security, and bespoke aesthetics have become an essential part and baseline expectations of modern-day living, said Shalin Raina, MD-residential services at Cushman and Wakefield.
As homebuyers actively seek features like rooftop lounges, private spas, yoga and meditation centres, and sports complexes that are comparable to international standards, branded residences have emerged as a high-growth category, Raina added.
"These developments," Raina said, "often built in collaboration with global hospitality or design brands, provide a fully integrated lifestyle ecosystem backed by professional asset management and service quality."
Feature Presentation: Rajesh Alva/Rediff
