One of the more positive impacts of the 2008 financial crisis on the real estate industry was an increase in the number of hotel-branded property developments emerging in the past five years. This trend is to be distinguished from the parallel, yet not unrelated, move towards lifestyle or fashion brands moving into the hospitality space in an attempt to extend their brand and add emotional value to the typical hotel guest experience.
While the likes of Versace, Armani, Missoni and Ferragamo have all rushed to put their names on the door of a luxury hotel project, the more prestigious hotel brands have also been doing their own bit of brand extension by partnering with property developers to create a new category of ‘branded residences'. By offering greater service standards, investment value and status, the presence of a luxury hotel brand is now thought to add a price premium of around 10% on that of a standard residence, according to some industry experts.
In a period of economic instability and a quest for secure investment options, these hotel brands have plenty to bring to the real estate party, inspiring investor confidence, adding a dash of aspirational value, providing rental management resources and the weight of a global marketing presence.
Typically an owner decides either to decorate the residence to their own tastes but forgoes the right to put the unit back into the rental pool, or the hotel owner provides a number of approved furniture packages for the investor to choose from, ensuring that the unit can then be returned to a rental pool operated by the hotel owner. The advantage here is in off-setting some or all of the annual overheads such as water and electricity bills, condominium charges and so on via income generated from renting the unit while the owner is away.
Throw in the provision of lifestyle necessities such as a concierge, spa, laundry service and restaurant, all on-site, and it is easy to see why this trend is impacting the Eastern Mediterranean now too.
Three such projects are currently in play, including the Regent Porto Montenegro in the Boka Bay (Montenegro), the Kempinski Adriatic Hotel & Skiper Resort in Istria (Croatia), and the Mandarin Oriental in Bodrum (Turkey).
Developed by Adriatic Marinas d.o.o, the Regent Porto Montenegro Hotel & Residences will be operated by famed luxury hospitality group Regent Hotels & Resorts. Due for completion by summer 2014, this waterfront hotel inspired by Venetian architecture features interior designs by Tino Zervudachi from MHZ in Paris and elegant, nautical chic interior furniture packages.
A total of 34 hotel rooms and 49 residences, including penthouse suites, all benefit from amenities such as a bakery-café, fine dining restaurant, library bar, event facilities, a Regent Spa with four treatment rooms and an indoor-outdoor infinity pool overlooking the marina.
In addition to freehold ownership, flexible rental pool options mean residence owners can decide when and if they return the unit to the hotel rental pool, even choosing to allocate just a particular section of their apartment if they prefer, thanks to an ingenious design scheme in the larger units. Prices are currently in the €7500/sqm price bracket and residence owners have a 30% discount on hotel room rates at all Regent Hotels & Resorts around the world as well as access to the marina's extensive homeowner benefits and events programme.
For more information about the Regent Hotel and Residences email firstname.lastname@example.org