Branded residence, a concept that first started in the US in the 1920s, has become a global phenomenon in the past two decades. Traditionally, branded residences have been luxury residential projects co-located or affiliated with well-known hotel brands that provide its residents hospitality services typically offered at a premium hotel.
Hit hard by the repercussions of the COVID-19 pandemic, the Indian hotels sector witnessed one of its lowest performances ever in 2020, in line with the estimates in our 'India Hotels Outlook' report published in August 2020.
COVID-19 has dramatically changed every aspect of life as we knew it, including the way we conduct our business. Though demand will be subdued for the near to medium term, we expect the industry to regain its 2019 glory in the next 2-3 years, making this an opportune time to invest in hotels.
Asset-light operating models have become the main stay for growth of many of the major hotel companies in India, with Management Agreements being the preferred structure. The other major asset-light model - Franchising - though is yet to gain significant traction in the country.