Table of Contents
Data Sources
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- Macroeconomic/general
- Serviced apartments
- Branded residences
- Abbreviations
- Definitions
Overview
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- Ageing of the population
- Demographic implications
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- Figure 1: Percentage distribution of the population in selected age groups, by selected region and country, 2009 and 2050
- Economic growth forecast for major countries/regions
- Asia and Africa leading the way
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- Figure 2: Overview of the world economic outlook projections (% change, unless otherwise noted), January 2010
- Financial markets have rebounded
- Inflation and interest rate outlook
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- Figure 3: Inflation outlook, by monetary zone, April 2008-11
- Figure 4: Interest rate forecasts, by currency zone, April 2010
- Exchange rate outlook
- Short-run forecasts
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- Figure 5: Exchange rate forecast, US Dollar against major currencies, April 2010
- Figure 6: Exchange rate forecast, Euro against major currencies, April 2010
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- Figure 7: Exchange rate forecast, UK Pound against major currencies, April 2010
- Figure 8: Exchange rate forecast, US Dollar against Eastern European and Latin American currencies, April 2010
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- Figure 9: Exchange rate forecast, Euro against Eastern European and Latin American currencies, April 2010
- The Renminbi is a contentious issue
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- Figure 10: Exchange rate forecast, US Dollar against Asian currencies, April 2010
- Figure 11: Exchange rate forecast, Euro against Asian currencies, April 2010
- Spending forecasts by major region/country
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- Figure 12: Travel and tourism expenditure worldwide, 2010-20
- Crisis has decimated the rank of the wealthy
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- Figure 13: Number of HNWIs, by region, 2005-08
- Latin America wealthy suffered least
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- Figure 14: HNWIs by country, 2007-08
- US still the leader for HNWIs
- A surge of HNWIs in the BRICs
- Also some big losses
- Over half of Asian HNWIs in Japan
- Ultra-HNWIs hit even harder
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- Figure 15: Number of HNWIs and ultra-HNWIs, by region, 2008
- A brightening outlook
- Asia-Pacific to surpass North America
- Europe and Middle East to lag
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- Figure 16: HNWI financial wealth trend and forecast, by region, 2006-13
- Trend in residential property values
- The winners
- … and the losers
- A nascent recovery in 2010?
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- Figure 17: Knight Frank Global House Price Index, Q4/2009
- A turnaround in London underway
- A lack of supply
- Housing starts up
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- Figure 18: Knight Frank Prime Central London Index results, Feb 2008-Feb 2010
- A good harbinger
Branded Serviced Apartments
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- Corporate housing competes with serviced apartments
- Difference with extended stay
- Competition from budget hotels
- Different grades of product
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- Figure 19: Extended stay brands, by ADR range in the US, 2009
- Upscale growing fastest in the US
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- Figure 20: Trend in the distribution of US extended-stay room supply in % of total room supply, 1998-2009
- Essentially serving business travellers
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- Figure 21: Breakdown by travel purpose of serviced apartment guests by region, 2009
- Leisure share increasing in the US
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- Figure 22: Trend in travel purpose of guests in US extended-stay hotels, 1998-2009
- Extended-stay profitability by segment
- Economy extended-stay hotel profitability
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- Figure 23: Statement of income and expense for a hypothetical economy extended-stay hotel*, 2008-09
- Midscale extended-stay hotel profitability
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- Figure 24: Statement of income and expense for a hypothetical midscale extended-stay hotel*, 2008-09
- Upscale extended-stay hotel profitability
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- Figure 25: Statement of income and expense for a hypothetical upscale extended-stay hotel*, 2009
- Regional development and performance of serviced apartments
- 11% capacity growth in 2009
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- Figure 26: Growth in number of serviced apartments*, by region, 2008 and 2009
- Africa
- Recent performance trend
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- Figure 27: Trend in rates for serviced apartments in Africa, 2009
- Figure 28: Trend in rates* for serviced apartments in Cape Town and Nairobi, Q3/2009
- The Americas
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- Figure 29: Trend in rates for serviced apartments in the Americas, 2009
- Figure 30: Trend in rates* for serviced apartments in Buenos Aires, New York, Rio de Janeiro and Toronto, Q3/2009
- US
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- Figure 31: Trend in US extended-stay RevPAR, by grade, 2002-09
- Growing supply has impacted performance
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- Figure 32: Trend in US extended-stay occupancy, supply and demand, 2002-09
- Figure 33: Trend in US extended-stay occupancy by grade, 2002-09
- 37% of extended-stay guests are transients
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- Figure 34: Trend in breakdown between extended-stay and transient* guests at US extended-stay hotels, by grade, 1998-2009
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- Figure 35: Trend in length of stay at US extended-stay hotels, by grade (in days), 1998-2009
- Figure 36: Trend in US extended-stay ADR, by grade, 2002-09
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- Figure 37: Trend in US extended-stay revenues, by segment, 2002-09
- Canada
- Corporate housing in North America
- Weakness in the upscale segment
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- Figure 38: Trend in US corporate housing stock and performance data, 2005-10
- Canada
- Asia
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- Figure 39: Trend in rates for serviced apartments in East Asia and Indian subcontinent, 2009
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- Figure 40: Trend in rates for serviced apartments in selected major Asian cities, Q3/2009
- China
- Hong Kong
- India
- Singapore
- Thailand
- Vietnam
- Australia and New Zealand
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- Figure 41: Trend in rates for serviced apartments in Australia and New Zealand*, 2009
- Figure 42: Trend in rates for serviced apartments in Sydney and Auckland, Q3/2009
- Trend towards sharing apartments
- Pressure from lower hotel rates
- Price differentials lessening
- New properties
- Europe
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- Figure 43: Trend in rates for serviced apartments in Europe, 2009
- Madrid the cheapest – Paris the most expensive
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- Figure 44: Trend in rates for serviced apartments in selected major European cities, Q3/2009
- Germany
- Berlin has become the leading market
- Germans are price conscious
- 18,000 apartments in Germany
- New properties
- UK
- Occupancies steady
- New properties
- Middle East
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- Figure 45: Trend in rates for serviced apartments in the Middle East, 2009
- Dubai
- Residential capacity being converted to serviced apartments
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- Figure 46: Trend in rates for serviced apartments in Dubai, Q3/2009
- Capacity still growing
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- Figure 47: Dubai’s aparthotel sector capacity, 2009
- Bavaria Executive Suites Dubai
- Distribution
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- Figure 48: Percentage of serviced apartments on GDS, by region, 2009
- Growth of sector stunted by lack of GDS listing
- A different rate structure from hotels
- Corporate housing unlikely to embrace the GDS channel
- Franchise fees
- About 9.5% of room’s revenue
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- Figure 49: Franchise fees for US extended-stay brands, 2010
- Franchising – a popular business model
Profiles of the Major Operators
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- Figure 50: Suppliers of serviced apartments, 2009
- Marriott International
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- Figure 51: Marriott International’s serviced apartment portfolio, by brand, year-end 2009
- Marriott ExecuStay
- Marriott Executive Apartments
- Residence Inn
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- Figure 52: Marriott’s Residence Inn portfolio, by location and business model, 2009
- Costa Rica
- Ecuador
- The European prototype
- TownePlace Suites
- Extended Stay Hotels
- Extended Stay in Chapter 11
- The chain has continued to operate
- Senior debt holders offered a new package
- A well-segmented extended-stay offer
- Strategic approach
- Extended Stay brands
- Crossland Economy Studios
- Extended Stay America
- Extended Stay America Efficiency Studios
- Extended Stay Deluxe
- Homestead Studio Suites
- StudioPLUS Deluxe Studios
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- Figure 53: Extended Stay hotels’ serviced apartment portfolio, by brand, 2009
- Pierre & Vacances
- Accommodation supply
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- Figure 54: P&V Group accommodation units by brand, September 2009
- Figure 55: Geographical breakdown (number of apartments/homes), September 2009
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- Figure 56: Number of P&V-branded apartments, by type of location, September 2009
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- Figure 57: Structure of P&V’s tourism residence portfolio (number of apartments/homes), September 2009
- Source markets
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- Figure 58: Breakdown of group accommodation turnover, by client origin, fiscal year 2007/08 & 2008/09
- Revenues down slightly
- Expansion projects
- Extension of Avoriaz
- Expansion in Morocco
- InterContinental Hotels Group
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- Figure 59: IHG’s serviced apartment portfolio, by brand, 2009
- Candlewood Suites
- Amenities
- A fast grower
- A majority are franchised
- A new design
- Staybridge Suites
- A first property in the Arab gulf region
- Development
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- Figure 60: Staybridge Suites capacity, by region and business model, 2010
- Pipeline
- Oakwood
- Products and services
- Apartment amenities
- Hilton
- Homewood Suites
- Six Homewood suites properties sold
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- Figure 61: Chatham Lodging Trust’s Homewood Suites portfolio, 2010
- Home2 Suites by Hilton
- Low construction and operating costs
- Guestrooms
- Special features and amenities
- 100 properties by 2013?
- Six new locations approved in Q1/2010
- Home2 Suites to compete with Candlewood and TownePlace Suites
- Accor
- Adagio
- À-la-carte services
- Rate structure
- Adagio set to quadruple its room count?
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- Figure 62: Accor’s serviced apartment portfolio, by brand, 2009
- Mercure
- Suitehotel
- Studio 6
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- Figure 63: Franchise fee structure, 2010
- Ascott International
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- Figure 64: Ascott International’s serviced apartment portfolio, by brand, 2009
- Portfolio development by region/country
- China
- Somerset opens in Chengdu
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- Figure 65: Ascott’s Asia-Pacific serviced residence portfolio in China, 2009
- India
- Ascott in Ahmedabad
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- Figure 66: Ascott’s Asia-Pacific serviced residence portfolio in India, 2009
- Japan
- A second Citadines in Japan
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- Figure 67: Ascott’s Asia-Pacific serviced residence portfolio in Japan, 2009
- South East Asia & Oceania
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- Figure 68: Ascott’s serviced residence portfolio in South East Asia and Oceania, by country, 2009
- Europe
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- Figure 69: Ascott’s European serviced residence portfolio, by country, 2009
- Stella Hospitality
- Stella brands
- Peppers
- Breakfree and Mantra
- Conference facilities
- Distribution and marketing
- Revenue management
- Human resources
- Asset elevation
- Value Place
- A no-frills hotel chain
- Guest profile
- Brand attributes
- Low construction cost
- Pricing policy
- Performance
- High profit margins
- Outlook
- Choice Hotels International
- MainStay Suites
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- Figure 70: Mainstay Suites key figures, 2005-09
- Suburban Extended Stay Hotel
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- Figure 71: Suburban Extended Stay Hotel key figures, 2005-09
- Wyndham Worldwide
- Hawthorn Suites repositioned
- Portfolio
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- Figure 72: Number of Hawthorne properties per US state, 2010
- International expansion
- Hawthorn Suites opens in Nigeria
- Quest Serviced Apartments
- Quest’s franchise model
- Site selection, training and promotion
- Return on investment
- Properties
- Pipeline
- Frequent-guest programme
- ResidHotel
- Families with young children targeted
- Distribution
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- Figure 73: Breakdown of ResidHotel’s revenue, by distribution channel in 2008
- Properties by type of location
- Mountain residences
- Seaside residences
- Countryside residences
- City aparthotels
- Residhotel Adama
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- Figure 74: Residence Adama rates, price per apartment per week, winter 2010
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- Figure 75: Residence Adama rates, price per apartment per night, winter 2010
- Food and beverage services
- Kids club
- Leisure amenities
- Frasers Hospitality
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- Figure 76: Frasers’ portfolio, by brand and location, 2010
- Development and future expansion
- Client profile
- Hyatt Summerfield Suites
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Branded Residences
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- Sector has suffered from the crisis
- Regional development
- Purchaser financing – a taboo subject
Profiles of Selected Major Developers
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- Amari Hotels & Resorts
- Property details
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- Figure 77: Planned Amari Hua Hin facilities and services, 2010
- Banyan Tree
- Resorts with residences for sale
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- Figure 78: Existing Banyan Tree’s resorts with residences for sale, 2009
- Architecture and design philosophy
- Investment details and membership benefits
- Exchange programme
- Laguna Phuket
- Grand Residences
- DoublePool Villas
- Pool Villas
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- Figure 79: Banyan Tree Phuket term sheet – two-bedroom pool villas, 7 May 2010
- Legal ownership structure and benefits
- Investment options
- Payment Terms
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- Figure 80: Option 2 – financing option details, 2010
- Banyan Tree Ungasan
- Property details
- Banyan Tree Lijiang
- Resort facilities and amenities
- Chun Feng Tea House Main Lobby
- Residence amenities
- Banyan Tree Hotels Residences Mayakoba
- Terrace residences
- Spa Pool Villas
- Pipeline
- Upcoming destinations
- Construction at Al Gurm Resort held up
- Outcome remains uncertain
- Fairmont
- Fairmont Residences, Pacific Rim, Vancouver, Canada
- Fairmont Residences, the Palm Jumeirah, Dubai, UAE
- Fairmont Residences, Shock Hill, Colorado
- Fairmont Residences, On the River, Colorado
- Fairmont Residences Zamalek Island, Cairo
- Emaar residences at the Fairmont Makkah (Mecca)
- Targeting pilgrims
- Fairmont Residences and Fairmont Estates Mina al Fajer, Fujairah, UAE
- Four Seasons
- One of the first in private residences
- Development and sales are outsourced
- Austin, Texas
- Baltimore, Maryland
- Beijing
- Bora Bora
- Denver
- Mauritius
- Miami
- Nevis
- Stewart’s Estates
- Clarke’s Estates
- Villas at Pinney’s Beach
- Punta Mita, Mexico
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- Figure 81: Estimated cost of a three-week stay in a Four Seasons villa at Punta Mita, 2010
- Seattle
- Seychelles
- Toronto
- Vail
- Hilton
- Conrad Koh Samui Residences
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- Figure 82: Details of Conrad Koh Samui Residences, 2010
- Waldorf Astoria Jerusalem
- Waldorf=Astoria Hotel & Residences Montreal
- Kempinski Residences
- Kempinski Hotel Adriatic, Istria, Croatia
- Private Residences San Lawrenz Gozo
- Kempinski Private Residences Bahía Estepona, Costa del Sol
- Du Parc Kempinski Private Residences, Switzerland
- Kempinski Private Residences Barbaros, Bodrum, Turkey
- Kempinski Private Residences Astoria Istanbul
- Bellevue Residences Istanbul
- Kempinski Palm Jumeirah Residences
- Kempinski Private Residences Alabadiyah Hills, Beirut
- Tower Residences
- Village Residences
- Kempinski Private Residences Jakarta
- Kempinski Private Residences Bayterek Almaty
- Kempinski Private Residences Jeruyik Astana
- Marriott/Ritz Carlton
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- Figure 83: Ritz Carlton Residence locations, 2010
- Currently operating residences
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- Figure 84: Sample of Ritz-Carlton residences, 2008
- Ritz-Carlton residences at Dove Mountain
- The Ritz-Carlton Golf Club, Dove Mountain Marana, Arizona
- Kapalua Bay
- Distribution and marketing of Ritz-Carlton residences
- Marriott has stopped further development of timeshare and residences
- Luxury residential development halted for good
- Mandarin Oriental
- Mandarin Oriental Residences New York
- Boston
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- Figure 85: Size and asking prices of apartments at Mandarin Oriental Residences Boston, 2010
- Mandarin Residences open in Vegas
- CityCenter, an US$11-billion complex
- A difficult market environment
- 5-10 years to work off condo inventories
- Vegas condo prices down 44% in 2009
- Mandarin condos the most expensive
- Financing programme for CenterCity condos
- Design features
- One Hyde Park
- Mandarin Oriental’s residence pipeline
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- Figure 86: Mandarin Oriental’s residence development pipeline, 2009
- Pierre & Vacances
- Les Senioriales
- Property sales boomed in 2008/09
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- Figure 87: New construction and renovations, deliveries in 2008/09 & 2007/08
- Renovation sales
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- Figure 88: Breakdown property development turnover, 2008-09
- Property reservations
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- Figure 89: Property reservations, including VAT, 2008/09
- Properties currently for sale
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- Figure 90: Stock of apartments marketed as of 30 September 2009
- P&V resales
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- Figure 91: P&V resales available as of May 2010
- Starwood
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- Figure 92: Starwood’s private residence portfolio, 2010
- Residential services group
- Revenue recognition
- W residences
- Owner benefits programme
- Atlanta
- Trump residences
- Trump International Hotel & Tower Chicago
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- Figure 93: Size and prices of Trump International Hotel and Tower Chicago Suites & Residence, 2008
- Trump International Las Vegas
- Trump International Hotel and Tower at Waikiki Beach Walk
- Apartments for sale
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- Figure 94: Trump Tower Waikiki listings, 2010
- Trump International Golf Club and Residences Puerto Rico
- Trump Las Olas Beach Resort
- Trump Ocean Club Panama
- Trump Ocean Resort Baja
- Trump Tower Palm Beach
What Next?
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- Serviced apartments
- Segmentation of serviced apartments by grade
- Segmentation and growth in Europe?
- Supply growth slowing in the US
- Strong growth to continue in Asia Pacific
- Branded residences
- Development potential shifting to emerging markets
- Recovery in markets will help…
- …but financing remains a problem
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