Accor's branded residence portfolio set to triple over the next five years
LIFESTYLE BRANDED RESIDENCE COMMUNITIES REPRESENT THE NEXT BIG FRONTIER IN THE GLOBAL HOSPITALITY INDUSTRY
PARIS, June 5, 2023 /PRNewswire/ - Accor, a world-leading hospitality group, and the second largest developer and operator of branded residences globally, today provided an update on the progress of its fast-growing, branded residences business line. Currently, Accor is welcoming residents home at some 40 branded residence communities around the world, with another 100+ projects under development, across 20 distinct brand collections. By 2027, the company expects to have more than 150 branded residences in operation, an increase of more than 300%. These properties are supported by Accor One Living, the company's industry-first platform focused on the development, design and operation of mixed-use projects and branded living communities. Through Accor One Living, homeowners, guests, and partners are connected to Accor's diverse ecosystem of brands, expertise, and solutions - creating a constant flow of new opportunities to live, work, and play.
"The intersection of private residences and lifestyle brands is one of our most compelling areas of growth right now – two areas in which Accor leads the global hospitality industry and is continuing to push forward," said Jeff Tisdall, Chief Business Officer, Accor One Living. "Around the world, we are seeing strong demand for homes that are anchored by the comforts and promises of a beloved brand experience, providing a sense of belonging and community. This is particularly true for our lifestyle brands, where we see an important and growing segment of residential buyers who are seeking design-led brands, with unique personalities that celebrate modernity, creativity, compelling food and drink, and extraordinary experiences."
The branded residential space is one of the fastest growing sectors in real estate, while lifestyle is the fastest growing category in hospitality – appealing to a new generation of homeowners who appreciate a modern and casual sense of luxury. Ennismore, the leader in lifestyle hospitality in which Accor holds a majority shareholding, has 11 branded residences open and 26 under development, including Mondrian Residences Burleigh Heads in Gold Coast, Australia; and Maison Delano Residences, Seoul.
One of the strongest markets in the world for Ennismore branded residences right now is Dubai, where the lifestyle collective currently offers three unique projects, all of which have been extremely well-received by homebuyers. These include:
- SLS Residences The Palm Dubai – The first standalone residence in the Ennismore collective outside of The Americas is set to open in 2026, featuring panoramic views of Palm Jumeirah and the Dubai skyline. Highlights include a Small Little Secret Club, an exclusive clubhouse for homeowners with private F&B concept, chef's table, entertainment lounge, infinity pool and a boutique fitness studio with treatment rooms. These 113 prestigious homes were 100% reserved within 30-days of their release.
- Mama Shelter Residences, Dubai – The first Mama Shelter residence in the world will add trendsetting energy to the Business Bay area when it opens in Q1 2024. Announced earlier this year, only a few of the 204 homes remain available.
- SO/ Uptown Dubai Residences – Opening later this year, this 227-residence property offers some of the most extensive residential amenities in Dubai, bringing playful, energetic style to a fashion-forward generation of homeowners.
In the luxury segment, Accor continues to draw strength from its world-renowned classic brands such as Raffles and Fairmont, with the latter a pioneering force that has led the market in creating luxury private residences for more than 20 years. Flagship developments include The OWO Residences by Raffles in London - a magnificent historical renovation project undertaken with visionary partners and owners Hinduja Group and Onex Holding; Raffles Residences Boston Back Bay; Fairmont Residences Century Plaza in Los Angeles; and Fairmont Residences Royal Palm Marrakech.
With more than two decades of experience as a leader in branded residences, Accor One Living also supports the integration of other innovative hospitality products into mixed-use developments anchored by its hotels and resorts, including private clubs, coworking and flexible office space solutions. Accor One Living pulls the specialized expertise required to support each phase in the life cycle of the projects it supports, into a single organization. These tailored, 360 degree solutions enrich the experiences of guests and homeowners alike, while enabling investment partners to unlock value by extending management solutions across multiple components of the same mixed-use development and through the thoughtful sharing of amenities, facilities and infrastructure.
According to Savills International Development Consultancy, the branded residential sector has grown 150% over the past decade, creating more than 100,000 units across 640 projects around the world, with an expectation to exceed 1,100 projects by 2027, nearly doubling the current supply levels.
"Global demand for branded residences is being driven by a number of societal and demographic trends," added Mr. Tisdall. "Growth drivers include a post-pandemic surge in demand for a second or even third home-away-from-home; the desire for seamless, turnkey recreational homes that can be cared for and even rented out while homeowners are away; and generational wealth transfer among high net worth and ultra-high net worth buyers who see real estate as an important element of their wealth management strategies and family legacies."
Accor is a world leading hospitality group offering experiences across more than 110 countries in 5 400 properties, 10 000 food & beverage venues, wellness facilities or flexible workspaces. The Group has one of the industry's most diverse hospitality ecosystems, encompassing more than 40 hotel brands from luxury to economy, as well as Lifestyle with Ennismore. Accor is committed to taking positive action in terms of business ethics & integrity, responsible tourism, sustainable development, community outreach, and diversity & inclusion. Founded in 1967, Accor SA is headquartered in France and publicly listed on Euronext Paris (ISIN code: FR0000120404) and on the OTC Market (Ticker: ACCYY) in the United States. For more information, please visit www.group.accor.com or follow us on Twitter, Facebook, LinkedIn, Instagram and TikTok.
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