Why branded residential is so hot in West Palm Beach

WEST PALM BEACH, Florida — Hotel developers have been saying for years that the best way to get upscale or luxury development to pencil out is to add branded residences to the project. But when is standalone branded residences the right choice and what can that allow developers to do?

Nick Pérez, president of Related Group’s Condominium Division, said it can depend on the market.

“In some markets, pairing a hotel with branded residences works really well,” he said. “In other markets, a residential-only model allows us to focus entirely on the ownership experience, tailoring every detail to today’s luxury buyers. These projects tend to be more exclusive, attract a less transient crowd and buyers are usually purchasing them as one of their main homes.”

Miami-based Related Group and Aventura, Florida-based BH Group secured $200 million in construction financing last week for the 138-key The Ritz-Carlton Residences, West Palm Beach, in the latest branded residential project to be announced in the bustling hotel market of South Florida.

Hotel Investment Today discussed the development with Pérez, who answered emailed questions. He said West Palm Beach is exactly the type of market where standalone branded residential works well.

“West Palm Beach is expanding at a pace that stands out regionally. Major investors, top hospitality brands and high-net-worth residents from both the U.S. and abroad have their eyes on this special city, and this financing is a testament to that,” he said.

Pérez said Related has been active in West Palm Beach for decades.

“We’ve been… watching the market evolve into one of the region’s most sought-after luxury destinations,” he said. “From the outset, we approached this opportunity with a long-term perspective, carefully considering how to best position it. We waited for the right moment — and the right brand partner — to ensure the property’s full potential could be realized.”

Construction is now underway for the The 27-story Ritz-Carlton Residences West Palm Beach is scheduled for completion in 2028.

Marriott International and its Ritz-Carlton Residences brand were the right partners, Pérez said.

“We’ve collaborated with them on many projects, including Ritz-Carlton Residences Tampa and W Pompano Beach Hotel & Residences, knowing their approach to luxury living would resonate with buyers and allow them to trust the team to manage their daily lives from day one,” he said.

There have been a number of notable branded residential projects announced in the past year in South Florida, including a Mandarin Oriental Residences in West Palm Beach; a Ritz-Carlton Residences in Fort Lauderdale; a Four Seasons Private Residences in Coconut Groves; a Delano branded residence in Miami; an OKO Group, which owns the Aman brand, developing a new hotel concept and branded condo residences in Miami’s Brickell neighborhood.

South Florida has always been synonymous with an exceptional quality of life… branded residences take that appeal to the next level. From Ritz-Carlton to St. Regis and Waldorf Astoria, these developments combine design, service and amenities in a way that makes luxury living seamless.

Nick Pérez

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Pérez said there are many factors that make South Florida such an appealing area for branded residential right now.

“South Florida has always been synonymous with an exceptional quality of life… branded residences take that appeal to the next level,” he said. “From Ritz-Carlton to St. Regis and Waldorf Astoria, these developments combine design, service and amenities in a way that makes luxury living seamless, creating homes that are all about the lifestyle.”

Pérez said West Palm Beach, in particular, has a lot happening right now, even at its early stage of growth, including major developments like the $300 million Vanderbilt graduate campus, the new Cleveland Clinic hospital and health care campus, and Wells Fargo’s Wealth Management and Investment headquarters.

“At the same time, the city is attracting top names in dining, arts, culture and fitness,” he said. “The development scene is strong too — from modern rentals in areas like the Nora District to high-end homes and branded residences, there’s something for every type of resident. The market is still in its early stages, and it’s exciting to see how all these projects are shaping the city.”