Branded real estate is a special category of properties that combine the best qualities of a hotel and a residential complex. Such properties are complexes of apartments or villas located in premium locations and managed by international hotel chains. Unlike hotels, where apartments are often limited in area (30-45 sq.m) and designed for short-term stays, branded residences are oriented towards permanent residence. Full kitchen areas are required here, and the total area often reaches 150-200 sq.m.
The main difference from regular housing is the high level of service. Hotel-managed properties relieve residents of household chores – cleaning, laundry, cooking and other routine tasks, providing services that meet the standards of a five-star hotel. This approach allows owners to focus on personal matters and family vacations.
The branded residences sector is growing rapidly. International consulting companies note a significant increase in demand, and the number of projects worldwide already exceeds 400. The growing interest in such properties is explained not only by exclusivity and high level of service, but also by the opportunity to receive additional income from real estate investments.
Phuket Branded Property Market
In Phuket, such residences have been particularly developed thanks to the active participation of hotel brands such as Best Western, Wyndham, Renaissance, Sheraton, Hyatt, Mövenpick and others. The island attracts wealthy tourists all year round, making it one of the most sought-after premium resorts in Asia. High rates for hotels in the premium and luxury segments create favorable conditions for the active development of hotel brands, which are the developers of such properties. In terms of the number of projects, Phuket is ahead of megacities such as London, Istanbul and Los Angeles.
According to the C9 Hotelworks 2024 report , the total value of branded residences supply in Phuket has reached a record 80 billion baht (approximately US$2.3 billion), with condominiums accounting for 59% of the market with an average price of around 11.7 million baht per unit, while villas, although only 6% of supply, account for 41% of the total value, highlighting their importance in the luxury real estate segment. There are 26 projects on the island with a total of 4,258 units, with the Cherng Talay area, which includes Layan, Bangtao and Surin, being the most densely populated with 14 projects and 2,352 units.
Main locations
Phuket has a concentration of such properties in a few key locations, each with unique investment and operational advantages.
- Laguna was the first branded property project in Phuket. In properties like Banyan Tree , Dusit and Angsana, owners buy villas for $2-3 million, renting them out or living there permanently.
- Layan has established itself as a leading location in this segment. The area attracts investors with its strategic location and high demand for luxury housing.
- Kamala and Bangtao each account for about 15% of the market, offering easy access to beaches and well-developed infrastructure. They are popular with both investors and those planning long-term residence.
Other popular locations include: Surin, Rawai, Nai Yang, Patong, Mai Khao and Karon.
In total, there are more than 3,000 branded properties on the primary market, with another 1,000 properties under development, distributed across ten projects. There is a noticeable increase in the average price per square meter, especially in the villa segment, indicating a trend towards higher premiums for luxury properties.
Read also: Best areas of Phuket for buying property .
Advantages and disadvantages
Branded hotel residences combine the best features of hotel service and the comfort of private housing, which is reflected in both their advantages and certain restrictions.
Advantages
- Developed infrastructure. When purchasing branded real estate, owners gain access to elite infrastructure: swimming pools, spas, fitness centers, restaurants, playgrounds, recreation areas and coworking spaces. This allows you to live in a property where every detail is organized for maximum comfort.
- High level of service. Everyday issues are resolved promptly: repairs, cleaning, grocery delivery, 24-hour concierge service - all these services are provided according to five-star standards, which significantly frees up the owners' time.
- Rental programs. The opportunity to enter into a favorable agreement with a yield of 5-8% per annum attracts investors. Flexible rental conditions allow the owner, if necessary, to leave the program and then rejoin it. At the same time, the property always remains under surveillance, even if it is not rented out.
- Quality and prestige. The properties are built to high standards and are located in prestigious areas, which contributes to their high liquidity and attractiveness on the market.
Flaws
- Increased cost. Branded residences are significantly more expensive than regular housing due to their exclusive location, additional services, and the status of the management company.
- Management restrictions. Owners participating in rental programs are prohibited from independently renting out properties under the brand name. In addition, the property's interior must meet hotel standards and cannot be modified to suit personal taste.
- Additional Costs : Higher maintenance and upkeep costs can be a significant factor for those who do not plan to use the property for rental or permanent residence.
It is worth noting that developers have increasingly offered rental programs as an option, rather than a mandatory requirement. Previously, brands required renting out housing through a management company, leaving owners with only a few weeks a year. The pandemic and geopolitical instability have changed the approach: people value a “backup option.” Buyers now want not only income, but also the opportunity to move into their property.