[Bloomberg] The eastward migration of wealth is creating incredible opportunities for investors, developers and world-renowned brands to tap into Asia’s demand for one of the most exciting offerings in real estate: branded residences.
Born in the roaring 20’s with the launch of the Sherry-Netherland Hotel in Manhattan, branded residences are properties where the developer partners with a well-known brand to create a guarantee of quality and the promise of an exceptional living experience. Their promise of personalized service, various lifestyle benefits and extensive amenities makes them irresistible to the wealthy.
A surge in popularity since the turn of the millennium has pushed branded residences to the forefront of the real-estate market for high-net-worth individuals (HNWIs). The sector grew 170% in the past decade alone. Today, there are more than 500 schemes in operation and 400 schemes in the pipeline.
Branded residences continue to gain traction in Asia. By 2025, Asia will account for nearly a quarter of Ultra HNWIs—those with a net worth over $30 million—up from 17% a decade earlier. The growing concentration of wealth continues to spur demand.
Today, Asia accounts for one-third of hotel-branded residences globally. By 2025, there will be an additional 79 new branded residence projects with more than 16,000 units in the region. Southeast Asia accounts for more than 90% of pipeline projects, and nearly half of that is associated with luxury hotel brands. Thailand and Vietnam lead the way.
Marriott Branded Residences in Vietnam
Today, the world’s largest player in branded residences sector is Marriott International with 21% of schemes. In January, Marriott International announced a milestone agreement with Vietnam-based real estate firm Masterise Homes to develop its first branded residential project in the Southeast Asian country and the largest hotel-branded residential project announced to date worldwide. As Vietnam’s property sector proved increasingly favorable among international investors due to its stellar economic growth, the hotelier made a foray into Vietnam’s branded residence segment.
As a rising star on the world map, Vietnam has undergone a series of dramatic changes over the past few decades. It became the country with the highest growth in GDP and international trade in Southeast Asia and is forecast to be the fifth in the world.4 But the main story in Vietnam is the country’s growing wealth and young population. Vietnam is forecast to see a strong growth in the number of HNWIs and UHNWIs to 25,812 and 511, respectively, by 2025.5
This is one of the main driving forces for branded residential segment and for Marriott International to grow its footprint in the country, said Gautam Bhandari, Regional VP – Development APEC, Marriott International. “Vietnam made a lot of sense to us, as it’s a growing and dynamic market with lot of potential, growing and stable economy, and young population with growing disposable income. We are looking to further grow our representation across Vietnam with partners like Masterise Home, adding to our residential portfolio of more than 100 completed projects and a pipeline of 60 additional projects.”
Ha Noi at The Grand
The Ritz-Carlton Residences, Hanoi at The Grand is among the most exciting offerings in the branded residences pipeline. Marriot International recently revealed its plan to sign yet another agreement with Masterise Homes to bring the project to life, with the promise of delivering to Vietnam the ideal structure of branded residences which benchmarked Ritz-Carlton’s global standards and luxury offerings in the market.
“We are excited to add Vietnam, Hanoi in particular, to the evolving and expanding The Ritz-Carlton portfolio, embracing the growing demands for branded living by affluent class in this economic growth hotspot,” said Bhandari. “For the residences in Hanoi, we are providing consultancy services for Masterise Homes on design and construction to ensure products are (i) comparable in terms of brand standards; (ii) competitive in the market; (iii) high quality product which will create long term value for buyers. Once open, the residences will offer management services by the Ritz-Carlton.”
The Ritz-Carlton Residences, Hanoi at The Grand are situated in the heart of the prestigious Hoan Kiem District, along the popular Hang Bai Road and near Hoan Kiem Lake, one of the city’s most beloved landmarks. Its prominent location is within proximity to the best of everything the city has to offer.
The Grand is the only urban branded residences in Ha Noi. Limited to 104 exquisitely designed branded residences, it is Ha Noi’s finest and most exclusive residences for a discerning few. In line with the long-standing tradition of excellence synonymous with Ritz-Carlton name, these branded residences will provide owners with world-class amenities complemented by the very best of elevated lifestyle services that offered by Ritz-Carlton. At The Ritz-Carlton Residences, service is the signature and legendary.
The reason is clear: With 100 years of history, an unshakeable credo and corporate philosophy of un-wavering commitment to service, both in its hotels and communities, Ritz-Carlton has been recognized with numerous awards for being the gold standard of hospitality.
An Attractive Opportunity
Purchasing a branded residence is a win-win – whether it is for private use or a trophy asset as they offer a much-sought balance between an elevated lifestyle and strong value items. The Grand at Ha Noi delivers on both fronts, especially as the world emerges from the grips of the Covid-19 pandemic.
The Grand at Hanoi offers buyers unparalleled quality backed by Ritz-Carlton brand. Already, the brand has proven successful around the world. Counting completed offerings and pipeline, Ritz-Carlton is the largest player by individual brand with more than 40 open and operating developments.
The Ritz-Carlton Residences, Hanoi at The Grand affords buyers quality facilities, services and management—all of which align with the lifestyle revolution stemming from the pandemic. With wide-open spaces, stunning views, wellness spaces and other amenities, it is destined to become a personal oasis in the heart of one of Southeast Asia’s most vibrant cities.