Launches Study to Quantify Pricing Premium for Hotel-Branded Residences

As described as a “three way win” by HVS industry veteran Philip Bacon and Ecole Hôtelière de Lausanne’s Dr. Demian Hodari, hotel-branded residences help hotel brands secure new hotels to manage, hotel developers finance their projects, and homeowners enjoy a superlative hotel-serviced lifestyle. One central aspect to the business model is for buyers to pay a premium to enjoy these integrated hotel-residential lifestyles.

To date, quantifying this premium over non-serviced or branded property has been left to hotel management companies that can cite specific properties in specific markets or to local brokers that compare branded and non-branded buildings and extrapolate the differences. The differing methodologies and meager quantity of data have left a great deal to be debated about these findings.

This spring, will be undertaking a global study of hotel-branded residence pricing premiums, focusing on individual buyers in individual developments. “Thus far, any quantitative analysis on the premiums buyers are willing to pay for hotel-branded residential product are specific to a local market and use an appraisal-type approach for an entire development,” says Dan August Cordeiro, Founder of “This essentially ignores the multitude of different buyer profiles and their distinct decision-making processes. We seek to resolve this in our upcoming study.”

Utilizing the involvement of third-party real estate brokers, the study will attempt to quantify the premiums paid by buyers for hotel-branded products, and provide breakdowns in different markets – for instance in the US versus Asia, and in urban settings compared with resorts. The study will then conclude with ranges for such premiums over non-branded properties, and the hierarchy of other factors such as layouts, interior design, amenities, location and views – all from a buyers’ perspective.

The study is anticipated to be completed in Spring 2013 and a summary of the results will be made available to the participants.