Hotel-branded apartment homes attract investors
Luxury hotel chains managing upmarket apartment homes are gaining traction as developers and buyers acknowledge their lifestyle and investment advantages.
Developers can command a premium for these apartments, knowing that buyers are willing to pay for a home in a tower associated with a well-known brand that offers upscale hotel amenities.
Perks range from a prestigious name on the front door to comprehensive concierge services.
Branded residences are becoming a significant business not only in the hotel sector but also among luxury car brands and even jewellery and fashion labels. While the concept has been slower to gain popularity in Australia, the global hotel chain Four Seasons is set to introduce branded apartment towers with the opening of its STH BNK site, part of a $2.3 billion development partnership with luxury property developer Beulah.
The project will include two high-rise structures that will become Australia’s tallest towers. It will also feature the world’s highest vertical garden, stretching 5.5 kilometres—nearly 1.5 times the length of Melbourne's Tan running track.
Four Seasons STH BNK will boast a 210-room hotel and 691 apartments, with one-bedroom units starting at $682,000.
Residents will have access to hotel facilities, including chef-prepared dinners, a pool, a kids' club, and wellness centres.
Similar projects, such as 1 Hotel Melbourne, Crown Residences at Barangaroo in Sydney, and Marina Mirage apartments on the Queensland Gold Coast, are also on the horizon, blending apartment living with the luxury of five-star hotels.
AXSIA HTL managing director David Simpson said, “These properties combine the best aspects of private ownership with the benefits of a luxury hotel, providing residents with access to world-class amenities such as concierge services, fine dining, wellness facilities, and bespoke interior design.
“The association with a reputable brand ensures a high standard of quality and service that you’d expect from their hotels, enhancing the property’s value and appeal.”
Those looking for a penthouse could look no further than 1 Hotel Melbourne, which would offer a hotel-branded penthouse for around $18 million.
The 1 Hotel brand is popular in Europe, North America and Cabo, Mexico. The Melbourne version will sit on the Yarra River’s so-called Northbank precinct. It is being developed by Riverlee as part of the $550 million Seafarers mixed-use project and will have 120 luxury apartments and a hotel with 280 guest rooms, a state-of-the-art wellness centre, and a 1000-seat function centre.
“This hotel positions itself as a sustainable luxury offering, set to include the city’s first hotel-branded penthouse later this year. It will provide residents with eco-friendly living spaces that don’t compromise style or comfort,” Simpson said.
From an investment perspective the properties are well worth a look.
“Branded residences tend to appreciate in value because they’re linked to prestigious brands. So, buying one is a smart choice – you get a luxurious lifestyle and a strong investment at the same time,” Simpson said.
According to a Knight Frank Wealth Report released in March, the global branded residence sector was a strong growth area catering to ultra-high-net-worth individuals.
Jonathan Jackson, 8th July 2024
