New head of branded residential lays out some strategy, identifies
emerging trends.
NEW YORK CITY – With robust growth expectations, Hyatt
Hotels Corp.’s still new Global Head of Branded Residential Tina Necrason is busy
sourcing deals around the world, including standalone residences growing in
popularity with developers.
With 18 residences open and another 30-plus under
development, Hyatt is naturally marketing its luxury Park Hyatt brand for
residential, as well as its lifestyle Thompson and Standard brands. Where Necrason
says they have a distinct advantage is with their wellness-focused Alila and
Miraval brands, a space with increasing demand among consumers.
With this expanded universe of wealth, we’re seeing people that really want connection to community. So, the amenities become really important. How do we create the right community for people – this placemaking idea?
Tina Necrason
It is preparing to open Miraval The Red Sea with 20 private residences, the brand’s
first resort outside the U.S. and designed around immersive, personalized
wellness programming, on Shura Island with 180 rooms and suites.
“We’re very focused on a lot of these emerging markets,”
Necrason told Hotel Investment Today at the recent NYU investment conference. “It’s
Dubai, the Middle East. We’re looking at some unique locations in Asia and
North America, as well… The Caribbean and LatAm is where we’re seeing a lot of
growth and opportunities coming our way, and I expect that to continue.”
Upcoming openings include Park Hyatt Los Cabos at Cabo del
Sol Hotel & Residences, plans for five Thompson Hotels Residences to debut
in Mexico in locations like Cancun, Puerto Vallarta, and Mexico City, along
with the recently opened The Standard Residences in Lisbon and other upcoming
openings in Miami and Asia.
Managing deliverables
Among the challenges for Necrason since joining in January
is adapting to the changing expectations of buyers who continue to skew younger
as wealth transfers increase.
“Our clients are still multi-generational and branded
residential is the gathering place,” Necrason said. “With this expanded
universe of wealth, we’re seeing people that really want connection to
community. So, the amenities become really important. How do we create the
right community for people – this placemaking idea?”
She also pays a lot of attention to the execution and delivery,
as well as service fulfillment side of the residential business. That aspect of
the job becomes even more complex when developing standalone residences, which
she said is becoming an increasingly viable opportunity.
“You have to consider the fact that there is no hotel and
building everything for the long term,” she said. “There are carry costs, the
amenities and how to really create the right environment and make sure that
people feel like they’re in a community without overbuilding or overmonetizing.
That’s where the standalone model has to be really well thought out.”
To control increasing development costs, Necrason said she
collaborates with the hotel development team to align and get resources to
improve efficiencies. “That’s one thing helping drive timing and where
resources are coming from,” she said. “There is no silver bullet in trying to
solve some of those challenges. It’s all hands on deck. We’re so involved at
the beginning of every deal.”
Emerging trends
She also said the makeup of developers runs the spectrum
with new developers emerging in sprawling new destinations away from city
centers where development and related costs aren’t as challenging.
Necrason cited locations outside the major markets in Texas
where land is a bit less expensive. “You can build destinations that are remarkable
to create a luxury experience in a lot of different ways. Bringing in a lot of
communities,” she added.
Another emerging trend Necrason cited is the real estate
selling when the hotel component opens versus heavy pre-sale when the hotel is
still under construction or even getting financing.
“It used to be two years, three years out and you’re
pre-selling,” she said. “Now, often, buyers don’t always have the vision. They
want to see it built, move-in, ready, turnkey, all of those things.”
Looking ahead as Hyatt builds momentum in the residential
space, Necrason said this fall they will project their narrative and portfolio in
a more meaningful way, showcasing and highlighting their “gems” and what’s to
come.
“So, there’s a bit of a countdown for that story,” she said.
“We’re creating a very cohesive experience positioning.”