Your condo is ready: Four Seasons pushes into residential

The luxury hotel brand has three U.S. condominium projects, two of which open next year

National /
Dec.December 19, 2019 07:00 AM
Four Seasons President of Residential Paul White and (clockwise from left) 706 Mission Street in San Francisco, 9000 W. 3rd Street in Los Angeles and Twenty Grosvenor Square in London

Four Seasons President of Residential Paul White and (from left) 706 Mission Street in San Francisco, 9000 W. 3rd Street in Los Angeles and Twenty Grosvenor Square in London

Four Seasons is finally checking into standalone branded residences.

The luxury hotel management company plans to double its residential portfolio over the next five years to 7,000 units. Notably, that involves a series of Four Seasons–branded condominium projects.

While hotel condos are not new for the industry or Four Seasons, it is significant that the high-end hotel brand is extending its name to properties where you can move in, but not check in.

“The idea that Four Seasons is doing this now I think is an important juncture in branded residential,” said Peter Bazeli of Weitzman. “Because Four Seasons was a holdout.”

The first batch of these properties will open next year.

The inaugural Four Seasons condo opened this summer in London and two California-based projects in Los Angeles and San Francisco are slated to debut in 2020. Four Seasons also has plans for a fourth condo project, in Washington, D.C., that will be designed by award-winning British architect David Adjaye.

“For us, it’s just a natural extension,” said Paul White, Four Seasons’ head of residential development, on the company’s new involvement with projects minus its famous hotel offerings.

The 58-unit L.A. project in Beverly Hills is being developed by Genton Development, with Lodestar Real Property Strategies handling sales and marketing. In San Francisco, a 146-unit tower is being developed and sold by an affiliate of Westbrook Partners.

Four Seasons will act as a property manager for the projects and will not be outsourcing service to third parties, according to a statement.

Bazeli, who has consulted on a number of branded-residence projects including the Four Seasons hotel and residences at 30 Park Place in New York City, said it wasn’t a surprising move, but it was “telling” for what it says about how brands are staying relevant and meeting customers’ demands.

“As one of the premier brands of luxury hotels — one that doesn’t even have a frequent guest program — it certainly marks a watershed,” said Russ Flicker of AWH Partners.

Flicker, whose real estate investment, development and management firm manages a portfolio of hospitality assets valued at over $1 billion, noted that big-picture hotel and residential concepts are increasingly “blending.”

As of this year, more than 400 residential projects globally are using a brand to leverage sales and demand higher prices that local competitors, according to a Knight Frank report. Of these residences, some use unconventional brands such as Versace, Armani and Porsche. But those that use hotel brands are often either housed within an operating hotel or are adjacent to the brand’s hotel.

Projects lacking a hotel are taking a risk, according to Bazeli.

“Without a hotel it will be very difficult to maintain the brand standards of service,” he explained. “Where it’s really difficult is where the flag doesn’t have an existing flag at all.”

White added that Four Seasons will be “extremely selective” in choosing partners and locations for its residential projects.

Flicker, of AWH, raised the question of whether Four Seasons would rent out its standalone condos. In a statement, the company noted that owners of its branded residences could opt in to its Four Season Private Retreats program, which would handle rentals and maintenance.

“It challenges your definition of what’s a hotel and what’s a residence,” Flicker said.

Write to Erin Hudson at [email protected]


Related Articles

arrow_forward_ios
 Assembly member Karines Reyes, Andrew Cuomo and Sen. Michael Gianaris (Getty)
Bill to fund hotel and office conversions heads to Cuomo’s desk
Bill to fund hotel and office conversions heads to Cuomo’s desk
Sen. Michael Gianaris (Getty, iStock)
Hotel, office conversion bill advances with deadline at hand
Hotel, office conversion bill advances with deadline at hand
102-05 Ditmars Blvd (Google Maps)
Queens hotel wins massive tax reduction
Queens hotel wins massive tax reduction
About 38 percent of New York hotels with loans in commercial-mortgage backed securities were 30 days or more past due in May. (iStock)
Hotels’ recovery taking longer in NYC than elsewhere
Hotels’ recovery taking longer in NYC than elsewhere
Leisure and hospitality led job gains in May as employers hired 559,000 people last month, more than double the month prior. (iStock)
Economic recovery quickens from crawling to merely slow
Economic recovery quickens from crawling to merely slow
Howard Lutnick and Newmark CEO Barry Gosin withTrump International Hotel in Washington, D.C. (Getty, Trump Hotels)
Trump Org taps Newmark to sell DC hotel
Trump Org taps Newmark to sell DC hotel
130 Duane Street and 106 Pinehurst Avenue (Google Maps)
Premier Equities picks up former Tribeca hotel for $18M
Premier Equities picks up former Tribeca hotel for $18M
Michael Dell and Major Food Group heads (from left) Rich Torrisi, Jeff Zalanick and Mario Carbone with a rendering of The Flamingo Grill at Boca Raton Resort & Club (Getty)Michael Dell and Major Food Group heads (from left) Rich Torrisi, Jeff Zalanick and Mario Carbone with a rendering of The Flamingo Grill at Boca Raton Resort & Club (Getty)
New York restaurateurs Major Food Group, Gallaghers Steakhouse ink big deals in Boca Raton
New York restaurateurs Major Food Group, Gallaghers Steakhouse ink big deals in Boca Raton
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...