Why Accor Will Triple Its Portfolio Of Luxury Branded Residences

Accor, a leading hospitality group, has announced its plans to triple its portfolio of branded residences over the next five years.

Branded residences have emerged as a significant trend in the global hospitality industry, combining the comforts of private residences with the unique experiences and lifestyle offerings of renowned brands. With 40 branded residence communities already in operation worldwide and over 100 projects under development, Accor aims to have more than 150 branded residences by 2027, representing a remarkable increase of over 300%.

Accor’s branded residences are supported by their innovative platform called Accor One Living. This platform focuses on the development, design, and operation of mixed-use projects and branded living communities. It creates a connection between homeowners, guests, and partners, allowing them to benefit from Accor’s diverse ecosystem of brands, expertise, and solutions. By offering a constant flow of opportunities to live, work, and play, Accor One Living aims to cater to the growing demand for homes that provide a sense of belonging and community.

The branded residential space is experiencing rapid growth within the real estate sector, while lifestyle is the fastest-growing category in the hospitality industry. These branded residences appeal to a new generation of homeowners who appreciate a modern and casual sense of luxury. Ennismore, a lifestyle hospitality leader in which Accor has a majority shareholding, is a key player in this market, with 11 branded residences currently open and 26 under development, including notable projects such as Mondrian Residences Burleigh Heads in Gold Coast, Australia, and Maison Delano Residences in Seoul.

Dubai is a particularly strong market for Ennismore’s branded residences, with three unique projects already capturing the attention of homebuyers. These projects include SLS Residences The Palm Dubai, the first standalone residence outside of the Americas within the Ennismore collective. The development offers panoramic views, exclusive clubhouse amenities, and has garnered significant interest, with all 113 homes being fully reserved within just 30 days. Mama Shelter Residences and SO/ Uptown Dubai Residences are also set to bring their trendsetting energy and playful style to Dubai’s Business Bay area.

Accor’s luxury segment benefits from its renowned classic brands like Raffles and Fairmont.

Fairmont, in particular, has been a pioneer in creating luxury private residences for over two decades. Notable developments include The OWO Residences by Raffles in London, Raffles Residences Boston Back Bay, Fairmont Residences Century Plaza in Los Angeles, and Fairmont Residences Royal Palm Marrakech.

Accor One Living, with its more than two decades of experience in branded residences, also supports the integration of other innovative hospitality products into mixed-use developments. This includes private clubs, coworking spaces, and flexible office solutions. By consolidating specialized expertise into a single organization, Accor One Living offers tailored 360-degree solutions that enhance the experiences of guests and homeowners. These solutions also enable investment partners to unlock value by extending management solutions across multiple components of the same mixed-use development, promoting the sharing of amenities, facilities, and infrastructure.

The branded residential sector has experienced remarkable growth over the past decade, with a 150% increase resulting in over 100,000 units across 640 projects globally. Savills International Development Consultancy predicts that this trend will continue, with an expected 1,100 projects by 2027, nearly doubling the current supply levels.

The rising demand for branded residences is driven by various societal and demographic factors. These include the post-pandemic surge in demand for second or third homes, the desire for turnkey recreational homes that can be managed and rented out while owners are away, and the generational wealth transfer among high net worth and ultra-high net worth individuals who view real estate as an important element of their investment portfolio.