Cheval CollectionFrom Nest to Nest Egg: Cheval’s insights on luxury hospitality in Europe and the Gulf
Nick Pilbeam, Chief Commercial Officer at Cheval Collection, investigates the growing appetite of investors for branded residences across EMEA
August 25, 2026Real Estate
Written by:Nick Pilbeam
Executive Summary
As global hospitality markets continue to shift towards operationally driven assets, the GRI Institute is pleased to share this article from Nick Pilbeam, Chief Commercial Officer at Cheval Collection, on the mainstream rise of luxury serviced apartments, the resilience of branded residences, and the vital role of experienced operators in driving premium value.
Ahead of Cheval joining us at Europe GRI 2026 - Incorporating GRI Hospitality in Paris on 9th-10th September, these insights offer a valuable overview of how investors can combine strong brand positioning, exceptional service, and operational expertise to secure both short-term income and long-term capital appreciation.
Ahead of Cheval joining us at Europe GRI 2026 - Incorporating GRI Hospitality in Paris on 9th-10th September, these insights offer a valuable overview of how investors can combine strong brand positioning, exceptional service, and operational expertise to secure both short-term income and long-term capital appreciation.
Key Takeaways
- Cheval sees investors shifting capital from traditional real estate into luxury hospitality and serviced apartments to capitalise on their superior growth rates.
- Branded residences have evolved into a mainstream global asset class that commands significant price premiums by offering bespoke, service-rich living experiences.
- Maximising short-term income yields and long-term capital appreciation in this complex sector relies heavily on the expertise of experienced operational partners.
The past decade has seen operational real estate reveal itself to be the matryoshka doll of assets. From one standard model to multiple options of varying sizes, taking up more space in portfolios as investors think again about which sectors are showing true resilience and growth.
Luxury hospitality has been at the forefront, as flourishing HNWs consume travel in growing numbers. As owners ourselves in the serviced apartment sector for more than 45 years in London, we have witnessed these travellers embrace the serviced apartment sector, eager for home from homes that give them the space to live flexibly, in the luxury they are used to.
Our combination of high-end products with exceptional service, but limber operations, has attracted the attention of investors around the world and we are now signing management contracts across EMEA, taking us to over 950 units with properties in Dubai and a pipeline including Saudi Arabia.
Within Europe underlying demand for serviced apartments has grown steadily since 2019, with a compound annual growth rate of 5.9%. This compares with a CAGR of 1.1% across the wider hotel sector, underscoring the relative strength of the serviced apartment sector and the attraction to capital.1
While serviced apartments were gaining traction around the world, so too have branded residences, which have moved from being a niche extension of luxury hotels into a global asset class.
They have come a long way from the first branded residence; the Sherry Netherland in New York, which opened in 1927 primarily as a hotel, but with some top-floor apartments where residences could enjoy access to a professional kitchen.
Modern owners look for experience, not just facilities and commonly enjoy access to a wide range of services, including private chefs, private trainers, personal assistants and concierges, all for an ancillary-revenue-driving fee.
As the sector grows, so too does transparency within it, as increased competition helps to illustrate the nuances between offerings. Brands are at the heart of whether investors can expect a premium over an independent product, supported by operational experience.
Savills’ Global Brand Premium Study confirmed that branded residences continue to command a global average premium of 33%, with resort locations achieving the highest premiums at 39%. Established and emerging cities both average 30%, reinforcing the resilience of the branded residential model across market cycles.2
For potential owners considering the sector, there are no shortage of brands coming into the segment, from hotels to cars to handbags, as a branded residence becomes the latest must-have accessory for the super rich. For investors, the choice is between a brand which can offer the quick hit of a big name, or one which can sustain and build that value.
The attraction of hospitality real estate for the hundreds, if not thousands of years that it has been a presence, is the combination of short-term income and long-term asset appreciation and investors have learned to see the sector not solely in terms of yield, but as part of a total-return strategy. An experienced operator is able to deliver both capital value and income yield and ensure that the premium achieved justifies the costs of the positioning.
Within branded residences that model is more nuanced than serviced apartments, but with similarities that encouraged us to move into the segment earlier this year, with a property in London and another in the pipeline in Dubai.
Investors considering the sector must look to all areas of the brand promise and, within hospitality, this means distribution. We have earned a high level of loyalty from our guests and our branded residences give them the opportunity to own their own Cheval Collection property. We also offer an industry-leading loyalty programme, Cheval DISCOVERY, featuring discounts and rewards across the world’s largest alliance of independent hotels and residence brands.
Traditional asset classes such as offices and standard residential properties are reporting compressed margins, encouraging investors to look to the hospitality sector to generate the returns they need.
What had been a sector on the fringes is now moving into the mainstream, with transparency proving its consistency and, in turn, its professionalism. What had been viewed as a niche hedge against inflation is increasingly moving towards the core in many portfolios, while the number of specialist investors is also increasing.
The complexity of this segment, once its main deterrent, is now part of its appeal. Investors see the potential to harness expertise to drive income and value in a market where the most ephemeral of all things - experience - is increasingly a guarantor of growth.
Nick Pilbeam is Chief Commercial Officer at Cheval Collection.
► Join leaders from Cheval and more than 600 other top industry players at Europe GRI 2026 - Incorporating GRI Hospitality in Paris on 9th-10th September
1 https://www.savills.co.uk/research_articles/229130/389805-0
2 https://www.savills.co.uk/research_articles/229130/230654-1
Luxury hospitality has been at the forefront, as flourishing HNWs consume travel in growing numbers. As owners ourselves in the serviced apartment sector for more than 45 years in London, we have witnessed these travellers embrace the serviced apartment sector, eager for home from homes that give them the space to live flexibly, in the luxury they are used to.
Our combination of high-end products with exceptional service, but limber operations, has attracted the attention of investors around the world and we are now signing management contracts across EMEA, taking us to over 950 units with properties in Dubai and a pipeline including Saudi Arabia.
Within Europe underlying demand for serviced apartments has grown steadily since 2019, with a compound annual growth rate of 5.9%. This compares with a CAGR of 1.1% across the wider hotel sector, underscoring the relative strength of the serviced apartment sector and the attraction to capital.1
While serviced apartments were gaining traction around the world, so too have branded residences, which have moved from being a niche extension of luxury hotels into a global asset class.
They have come a long way from the first branded residence; the Sherry Netherland in New York, which opened in 1927 primarily as a hotel, but with some top-floor apartments where residences could enjoy access to a professional kitchen.
Modern owners look for experience, not just facilities and commonly enjoy access to a wide range of services, including private chefs, private trainers, personal assistants and concierges, all for an ancillary-revenue-driving fee.
Cheval Residences Knightsbridge Gate in London (Credit: Cheval Collection)
As the sector grows, so too does transparency within it, as increased competition helps to illustrate the nuances between offerings. Brands are at the heart of whether investors can expect a premium over an independent product, supported by operational experience.
Savills’ Global Brand Premium Study confirmed that branded residences continue to command a global average premium of 33%, with resort locations achieving the highest premiums at 39%. Established and emerging cities both average 30%, reinforcing the resilience of the branded residential model across market cycles.2
For potential owners considering the sector, there are no shortage of brands coming into the segment, from hotels to cars to handbags, as a branded residence becomes the latest must-have accessory for the super rich. For investors, the choice is between a brand which can offer the quick hit of a big name, or one which can sustain and build that value.
The attraction of hospitality real estate for the hundreds, if not thousands of years that it has been a presence, is the combination of short-term income and long-term asset appreciation and investors have learned to see the sector not solely in terms of yield, but as part of a total-return strategy. An experienced operator is able to deliver both capital value and income yield and ensure that the premium achieved justifies the costs of the positioning.
Within branded residences that model is more nuanced than serviced apartments, but with similarities that encouraged us to move into the segment earlier this year, with a property in London and another in the pipeline in Dubai.
Investors considering the sector must look to all areas of the brand promise and, within hospitality, this means distribution. We have earned a high level of loyalty from our guests and our branded residences give them the opportunity to own their own Cheval Collection property. We also offer an industry-leading loyalty programme, Cheval DISCOVERY, featuring discounts and rewards across the world’s largest alliance of independent hotels and residence brands.
Traditional asset classes such as offices and standard residential properties are reporting compressed margins, encouraging investors to look to the hospitality sector to generate the returns they need.
What had been a sector on the fringes is now moving into the mainstream, with transparency proving its consistency and, in turn, its professionalism. What had been viewed as a niche hedge against inflation is increasingly moving towards the core in many portfolios, while the number of specialist investors is also increasing.
The complexity of this segment, once its main deterrent, is now part of its appeal. Investors see the potential to harness expertise to drive income and value in a market where the most ephemeral of all things - experience - is increasingly a guarantor of growth.
Nick Pilbeam is Chief Commercial Officer at Cheval Collection.
► Join leaders from Cheval and more than 600 other top industry players at Europe GRI 2026 - Incorporating GRI Hospitality in Paris on 9th-10th September
1 https://www.savills.co.uk/research_articles/229130/389805-0
2 https://www.savills.co.uk/research_articles/229130/230654-1