Branded Residences: Where Hotel Fundamentals Draw the Line

News

28 Feb 2026

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Industry leaders at HIDE debate how branded residential is reshaping hotel development, and where the risks lie. Among esteemed industry leaders, Roger Allen from RLA Global shared his views about the growing dominance of branded residences in making hotel projects financially viable.

At the Hotel Investment + Development Event (HIDE) held in London on 12 February, RLA Global Group CEO Roger Allen joined a high-level panel to address one of the most contested dynamics in hospitality development today: the growing dominance of branded residences in making hotel projects financially viable.

Alongside esteemed indsutry leaders, Dan Wakeling from Hilton and Sam Barrel from Marriott International, Roger contributed insight into the economics at play. While branded residential is proving to be a powerful capital tool, with global pricing premiums averaging around 30% over unbranded product, the panel was united in its caution. As Roger noted, some developers "focus almost too much on the branded resi and the hotel almost can be secondary," a distortion that can quietly undermine long-term operational performance.

Roger also put hard numbers to one of the most overlooked costs in the branded residential equation: licence fees. "The big ticket," he pointed out, "is really on the licence fee - you're kind of two to four, five percent of GDV." It is the kind of practical detail that gets buried in the excitement of off-plan sales and early developer liquidity.

His closing observation was equally grounded: buyers who commit millions to a purchase will still scrutinise monthly service charges line by line. Getting those figures right from the outset is not optional. It is fundamental to the entire proposition.

The conversation at HIDE made clear that branded residences are here to stay as a development driver, but only work when hotel viability stands on its own, governance is robust, and lifecycle costs are honestly accounted for.

Access the full article from Hotel Analyst.

 

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