Austrian state news organization ORF recently featured HotelHomes.com founder Dan August Cordeiro, in an article written by Doris Manola. The following excerpt contains the portion of the article featuring Cordeiro, translated into English.
Of course, you have to reach deep in your pocket for [hotel-residential] luxury – and increasingly not simply as a permanent tenant in the hotel, but as the owner usually an apartment on the top floors of a hotel or in [an adjacent building]. Buzzwords for the structures that differ from one another in detail include hotel-branded residences, (carrying a hotel’s brand) condominium hotel (or “hotel condo”), hybrid hotels and serviced accommodation.
While Hotel-Condos [can be used by the owner] only for certain periods – usually a maximum of 60 to 180 days a year – they are rented from the hotel under profit sharing for the rest of the year, whereas the owner of a hotel-branded residence generally has unrestricted rights. “Hotel-branded residences are better accepted in the market,” said Dan August Cordeiro, founder of the website platform HotelHomes.com, [the global directory of hotel residences] said in an interview with ORF.at.
In general, living in one’s own hotel penthouse is not new – but it is in this form according to Cordeiro. [Early examples include] the Four Seasons Place in Boston, which already trod this path in 1985, Amanpuri Resort in Phuket (1988) and, in Europe, Kempinski Estepona in Spain (1999). In Austria, as in general in Europe, the trend arrived later than in Asia, as there are more small than large hotel chains, many independent hotels and branding of hotels in Europe is less prevalent than in the U.S. and Asia. In addition, there is a lack of large, [well-located] development sites in European cities.
Cordeiro currently has on its platform more than 230 properties. Almost every week new projects are [put on the market]: “The business is growing exponentially.” On the high-end market, especially in cities like New York and London, exclusive hotel projects are mostly in this hybrid form, with both a hotel and hotel-branded residences [for sale].
In the Near and Far East, this hybrid is also being developed, thanks mainly to the growth of major hotel chains. Smaller hotels chains are also [increasingly active in the sector].This includes designers such as Armani, Versace and Baccarat entering the game, where they also act as the flagship hotel brands.
At least a hundred hotels in Austria have to offer serviced accommodation in a variety of mixed forms, says Klaus Ennemoser, chairman of the Federal Association of the hotel industry in Austria Economic Chamber (WKO), in conversation with ORF.at. He mentioned in particular models with timeshare (“timeshare” or “fractionals”). They represent a second home alternative to the luxury high-end segment.
Ennemoser sees a clear trend and significant market potential in this area. “This will greatly increase,” he says. Hybrid products have become economically necessary because banks demand at least 50 per cent equity for new hotel projects.
Both Ennemoser and Cordeiro see a win-win situation: Tourist developers can find funding for their hotel projects, while buyers receive the full comforts of a hotel and [the promise] of a good investment. More and more hotels and new hybrid products are entering the market, confirms the CEO of the Chamber trade association for hotels, Matthias Koch. In Vienna, the recently-opened Palais Hansen Kempinski would otherwise have been as [infeasible], according to Koch.
The full, original article in German is available here: http://www.orf.at/stories/2180070/2180071/