Diogo Canteras, Founding Partner - HotelInvest

The growth of branded residences and hybrid hospitality models, such as condo-hotels, is reshaping how projects are financed and structured across Latin America. In an environment marked by tighter credit conditions and increased market selectivity, these formats have emerged as efficient alternatives to bring developments to life—reducing risk for developers while enhancing attractiveness for buyers.

At the core of branded residences lies the integration of brand, operations, and experience. Consumers seek security, consistency, and service standards—attributes that hotel operators are uniquely positioned to deliver. For end investors, the appeal lies in perceived value and operational stability; for developers, in faster sales absorption and higher average ticket prices.

Hybrid models, including condo-hotels, function as investment distribution mechanisms, allowing larger-scale projects to be financed by multiple buyers. This structure significantly reduces the developer’s equity requirement. However, such models demand robust legal frameworks and clear governance structures to mitigate potential conflicts among operators, investors, and developers.

Brand selection is another critical factor. Not every brand is suited to these models, and alignment between service standards, target audience, and product positioning is essential to long-term success. Moreover, post-delivery operational performance must remain consistent, as it directly impacts the future value of the asset.

With growing demand and proven results across multiple markets, branded residences and hybrid models are expected to continue gaining relevance in the years ahead. For investors and developers alike, they represent a compelling combination of liquidity, security, and differentiation.