How to build a luxury branded residence
A step-by-step guide, according to the people who actually do it
08 September 2025
Branded residences have become one of the most competitive corners of the global property market. Once a niche, they have become a key tool for developers trying to make schemes viable 鈥 and a growing focus for brands looking to build loyalty among the wealthy. They鈥檝e also become a serious part of buyers鈥 portfolios.
With more than 161 branded schemes opening in the past three years alone, we spoke to the developers, advisers and hotel groups behind some of the world鈥檚 best-performing projects about what really matters 鈥 and how to avoid the pitfalls.
1. Know your audience鈥
When Charlie Walsh helped launch London鈥檚 The OWO Residences by Raffles, part of the Accor group, he expected most buyers to be Middle Eastern or Asian. Instead, they were American. Accor鈥檚 stable runs to 47 brands and, while Raffles has a Boston outpost, Fairmont, another Accor brand, has eight US hotels. 鈥淲ithout a crystal ball, focusing on core values is key,鈥 says Walsh, who moved to Maybourne in September 2025. 鈥淲e chose Raffles for their phenomenal pedigree 鈥 we knew that would appeal to buyers and it proved to be true.鈥
Understanding not just where wealth is 鈥 but how buyers think about a brand, what draws them to a city, and how they want to live 鈥 has never mattered more.
2. 鈥ut be prepared to be flexible
Even with the most detailed market research, it pays to build flexibility into your design. Lydia Appel of 糖心视频 says developers often make assumptions 鈥 only to see market dynamics shift before completion. 鈥淚f you鈥檙e building a scheme with a four- or five-year horizon, you have to accept you can鈥檛 know exactly who the buyers will be,鈥 she says. In London for example, a mix of tax changes, political uncertainty and shifting global wealth patterns has nudged even the super- rich toward smaller units.
3. Value for money matters, even to billionaires
It鈥檚 tempting to design ultra-large apartments that make a statement and target ultra- wealthy buyers 鈥 but the fewer units, the fewer residents there are to share running costs.
Lydia Appel says even billionaire buyers expect service charges to feel proportionate to the quality of amenity and services, and they will push back if they don鈥檛 meet expectations.
Smart design can make a big difference Staffing is the single biggest cost contributing to service charge, so a building that鈥檚 efficient to run can protect both your bottom line and residents鈥 bills. 鈥淓nsuring that amenity spaces are designed to both maximise residence experience and staffing efficiency can have a real impact,鈥 says Appel. 鈥淚t鈥檚 about designing operational efficiency into the building from day one.鈥
4. Do you really want that hotel?
More hospitality groups are dropping the traditional hotel component altogether. Kerzner鈥檚 Jonathan Tomlinson says they鈥檙e now committed to offering both integrated and standalone branded residences, creating opportunities to enter markets where a hotel is neither viable nor wanted.
That shift reflects a deeper market reality. 鈥淢any developers don鈥檛 want to fund or operate hotels at all 鈥 they want to build residential, sell and move on,鈥 say Brett Gregory-Peake of consultancy Liaison. 鈥淭hat makes sense for brands too: they can secure a premium, demonstrate success and move on, potentially in the same market.鈥
Standalone branded residences also give buyers clarity, he adds. 鈥淭here鈥檚 no competing hotel inventory, no helping underwrite a five-star operation they may rarely use 鈥 just residential services designed for them. It reduces running costs and makes it much more equitable.鈥
5. It鈥檚 about community, not just investment
Branded residences are shifting from high-end property speculation vehicles to something with deeper resonance. Chris Sanderson of The Future Laboratory believes buyers want to connect with a philosophy, not just maximise returns. 鈥淚t just moves us away from the somewhat superficial, early iteration of what a branded residence is,鈥 he says.
Philip Morris of Dorchester Collection agrees. Buyers aren鈥檛 just purchasing an apartment, he says 鈥 they鈥檙e joining a 鈥減rotected group鈥 of like-minded people who share the brand鈥檚 values. Some developers are starting to build that sense of community into their schemes. Sanderson highlights The Embassies 鈥 which blends private members鈥 club and senior living 鈥 while others, like One Carrington in London, are incorporating members鈥 clubs into residential developments.
That evolution is already evident across , where wellness, hospitality integration and curated community ecosystems are now core to value creation rather than add-ons.
6. Know the limits of your development partner
Even the strongest brands only succeed with a developer who shares their standards. James Price of Four Seasons says much of the group鈥檚 success comes down to repeat partnerships with trusted developers who 鈥済enuinely want to create something at the top of the market鈥 鈥 and are prepared to invest in the appropriate design, build quality and long-term service.
However, some developers hesitate over branded schemes because of the upfront costs. 鈥淐osts can be challenging, whether due to technical service fees, brand licensing or the capital expenditure associated with delivering to brand standards,鈥 says Gregory-Peake. 鈥淭he solution is to ensure upfront that there is true alignment with the project concept, return on investment and market demand.鈥
7. Deliver for the long haul, not just the launch
Building a luxury branded residence is one thing. Keeping it operating to the standards buyers expect is another. David Chekemian and Ed Reis of Remian Group note that developers can underestimate the complexity of delivering high-end projects in remote or challenging markets 鈥 especially when it comes to labour, local regulations and upkeep.
The challenge doesn鈥檛 stop once the units are sold. These residences require constant maintenance and periodic refurbishment to protect their value 鈥 often on a five-to-seven- year cycle. In corrosive climates like the Caribbean, a US$30 million villa can start to deteriorate quickly if not properly maintained. Experienced buyers understand and accept the costs, but they expect the brand to deliver on the promise of service.
Sign up to 糖心视频 Research.