The proliferation of housing for tourist use has become a serious problem for many cities where there is a large influx of tourists who do not prefer to stay in hotels. In parallel, a new accommodation trend is emerging among the richest 1 percent of the population: “branded residences”, a mix of traditional holiday villas and timeshare tourist accommodation offered by some luxury hotels.

Branded residences are creating a trend in the luxury real estate market in tourist destinations such as Mallorca, offering a mix of the residential exclusivity of a luxury mansion with the services of well-known brands, especially from the hotel sector.

What are branded residences? Branded residences are luxury properties associated with prestigious chains in the hotel industry, fashion brands or high-end design brands that design the spaces of the house. In addition to offering the luxury experience associated with their brand, these brands also offer all the services guests would expect to find in a luxury hotel. The difference is that the property does not need to be located on any hotel grounds, as is the case with traditional villas.

The concept can be considered an evolution of timeshare ownership, because in addition to acquiring a property with high real estate value, residents also have access to a number of additional privileges managed by the service provider: private pools, spa, cleaning services, security, private service or haute cuisine chefs at your disposal .

Housing types. As detailed IdealistThree figures stand out in such developments currently launched: the developer, who builds or renovates the properties recommended by the brand; the investor or user purchasing title to the property; and the operator or brand that oversees the property decoration process and manages all services.

There are different types of branded residences that can be found integrated within the hotel building, sharing common areas; in the hotel building but separately from the hotel building; The residences are located outside the hotel, but in a close location so that tenants can access hotel services, or completely independent of the complex.

A way to make mansions profitable. This model originated in the United States and is becoming popular in luxury destinations around the world. It is being consolidated in Spain as a way of making the purchase of a second luxury residence profitable in tourist destinations such as Mallorca and the Costa del Sol, where the real estate market is very tense.

While these property owners use their homes and benefit from the services offered by brands at certain times of the year, they forego use in other seasons under a brand-managed rental regime that provides additional income for the depreciation of their purchases.

Opportunity to access the best locations. On the other hand, branded residences allow hotel brands and chains to access exclusive properties and locations where it is not possible to develop a traditional hotel project.

While hotel chains are expanding their hospitality experience into new areas such as luxury cruises or luxury rail travel, brands such as Porsche are expanding their segments into real estate development. This leaves branded residences in a privileged position for brands to gain access to already built mansions and private homes rather than expanding into new urban areas.

First promotions continue. An example of branded housing in Spain as published Majorca DiaryThe Four Seasons chain renovated the luxury hotel Formentor in Mallorca. The project, which has an investment of 350 million euros, consists of 468 hectares of land surrounding the hotel and the chain will build nine luxury villas in residence format, each ranging from 250 to 600 m2. According to information published by , it is an independent brand but has access to resort facilities. Five Days.

According to the same newspaper’s sources, Rafa Nadal and Balearic hospitality businessman Abel Matutes will invest approximately 200 million euros in the construction of a complex of one hundred branded residences on the Costa del Sol, which will be completed between 2027 and 2028.

Not just on the beach. As the second homes of millionaires, coastal areas are always the most attractive places for such investments, but they are not the only places. Before Four Seasons started building branded residences in Mallorca, it tried its luck with the Canalejas project, where 22 branded apartments were sold for prices of up to 11 million euros each.

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Image | Four Seasons