Branded Residence to Branded Offices

Image Source: ElevatedBoston.com 

Are hotel brands shaping the future of real estate?

The branded residence sector is one that has become quite well known, dominated by hotel brands offering world-class service alongside luxury living.  However, the term “hotel-branded offices” is a new concept in commercial real estate where a hotel brand extends its identity, service standards, and lifestyle elements into the office sector.

Essentially, these are workspaces (typically located in premium-grade buildings) that are operated, co-branded, or curated by a well-known hotel chain. Examples include Working From_ by Huxton hotels and societyM by citizenM.

The first of its kind in the Middle East will be  HQ by Rove, which is to be launched by Emaar under their Rove hotel brand. These offices will offer fully furnished modular offices with a lifestyle-first approach featuring unique hotel-style amenities and all the elements required to create a thriving community.  

Hotel-branded offices are first and foremost defined by their branding and positioning. Similar to hotel-branded residences, the offices will carry the prestige and recognition of the hotel’s name, which appeals to tenants who want an association with luxury, service, and a particular lifestyle. 

These offices will also be run with hotel-like amenities and service levels, such as concierge desks, meeting and event support, curated F&B, etc.  For example, may Work From_ location offer daily curated wellness classes and speaker events.

Hotel-branded offices aim to tap into the “work-from-anywhere” and “hospitality crossover” trend where users feel more like guests rather than tenants. As offices compete with remote work, infusing hospitality elements could help reposition them as destinations offering more than just a desk. 

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While it might seem that hotel-branded residences play within the same sphere as co-working spaces, there are some distinct differences.  Co-working offices are operated under flexible workspace brands (e.g. WeWork, Regus, and Spaces) with a less luxury cachet, while hotel-branded offices leverage the prestige and global reputation of a luxury hotel brand.

This is also seen in the design and atmosphere of these offices, with hotel-branded offices having high-end finishes inspired by hospitality design, focusing on lifestyle, comfort, and prestige. Conversely, traditional co-working spaces are often more functional, sometimes trendy or utilitarian, and vary widely by operator and location. Hotel-branded offerings aim to deliver spaces that feel more like a hotel lobby than a maze of cubicles. 

The target market and associated pricing between the two segments also tend to vary significantly.  Hotel-branded offices typically target corporates, high-net-worth individuals, and businesses that value prestige, privacy, and global consistency - and they charge premium rates for the associated luxury, brand, and service levels. 

In short: hotel-branded offices are the luxury, lifestyle cousin of co-working spaces, carrying prestige and hospitality-style service, while traditional serviced/co-working spaces are more focused on cost efficiency and pure flexibility.

With the global co-working market expected to be valued at USD 40.4 billion by 2030, deciding which type of offering to include in a development can be a conundrum and requires an in-depth understanding of the target market and overall positioning of the project. Partnering with advisory experts who are well-versed in catchment area analysis, target market screening, and project segmentation is crucial.