Hotel Branded Condos in Manhattan: A Good Investment?

Posted by Wei Min Tan on March 4, 2025

Hotel branded condos in Manhattan represent a niche segment as there is only a handful, from hotel brands like Four Seasons, Mandarin Oriental, Ritz Carlton and Aman.  This article serves to analyze the nuances and evaluate whether a hotel branded condo is a good investment.  There are always pros and cons, and a strong understanding of the property is how we guide buyer clients in the buying process.

Read about Wei Min’s style in Best Manhattan property agents and Role of a buyer’s broker.

Luxury and Service, The Allure of Branded Residences

Perhaps the key draw of hotel branded condos is the level of service and amenities that come with the brand affiliation.  For instance, the Four Seasons Private Residences in Tribeca offers residents access to the hotel’s renowned services, including concierge, housekeeping, and in-room dining.  The Ritz-Carlton Residences, with locations in NoMad and Central Park South, provides a similar experience, blending the comfort of a private home with the luxury of a five-star hotel.

To a foreign buyer who is overwhelmed with a sea of information and property offerings, five-star hotel brand familiarity provides assurance that a property will have a high level of quality.  If I were contemplating buying an investment property in a different city, it’s normal to lean towards a brand name like Four Seasons or Mandarin Oriental vs a condo that goes by 123 Manhattan Street.  PS – most Manhattan condos go by the property address and do not have a name.

Beyond service, hotel branded condos in Manhattan are distinguished by their exceptional design and exclusivity.  The Mandarin Oriental Residences, located at 80 Columbus Circle and 685 Fifth Avenue, is synonymous with Asian-inspired elegance.  The Aman New York Residences, situated in the iconic Crown Building, represents the epitome of minimalist luxury, with a focus on wellness and tranquility.  The Four Seasons Residences in Tribeca offers luxurious private residences with the highest level of staff attentiveness and breathtaking views of lower Manhattan.

Premium prices and rents 

No surprise, price per square foot is much higher for hotel branded condos.  For example, Four Seasons Private Residences has an average price per square foot of $3,198.  For context, the Manhattan condo average is $2,127 while the average luxury Manhattan condo, defined as the top 10 percent, trades at $2,968 per square foot.

For those intending to rent out the condo, rents are much higher as well.  The Manhattan average unfurnished luxury condo rents at $98 per square foot.  Unfurnished rentals at the Four Seasons are at $140 while at Mandarin Oriental, $192.  While price and rents are at a premium for hotel branded condos, carrying costs are higher as well.  It can range from a more modest $4.50 per square foot to $7 per square foot per month.  This compares to the condo average of $3 per square foot.

The premium price and rents shows that the market appreciates and will pay the premium to live in a branded condo.  Looking at the inventory of for sale and for rent, it’s usually quite tight as well.

Is it a straight condo or a condotel?

Within hotel branded condos, it can be either a straight condo or a condotel.  A straight condo is similar to any other condo where the owner gets to use it full time or rent out as desired.

But there is a concept of a condotel (condo-hotel), as seen in properties like the Ritz-Carlton NoMad.  A condotel is where the owner can use the unit for 1-2 months a year and the hotel rents out the unit as if it’s a hotel suite for the remainder time.  On the positive side, condotels can command very high nightly rental rates, managed directly by the hotel, maximizing potential gross rents.  Conversely, operating costs for condotels are a lot higher as there is usually a revenue share with the hotel and much higher operating expenses.

Wei Min’s article: Manhattan Property Market Update

Is it a good investment?  

Well, you now know the pros and cons.  But do hotel branded condos make a good investment?

Answer is it depends.  There are a lot of factors that go into evaluating whether a condo is a good buy, branded or not.  The view, price per sqft that you’re getting into, rental yield, apartment line, layout….these are all important factors that we analyze with buyer clients.

For example, a condo being offered at $3,000 per square foot when the average at that property trades at $4,000 per square foot may seem like a good deal.  But what if I tell you that the view is looking over the neighboring building’s roof mechanicals?  It changes the equation immensely.  This is why expert knowledge is critical.

We specialize in advising global clients on selecting the right condo investment.  A recent hotel branded condo buy was at the Four Seasons Downtown, where our client bought at $2,100 per square foot, a significant discount to the $3,198 blended average at Four Seasons.  The apartment is on the 59th floor with the best views of Manhattan.  In addition, there is opportunity to add a bedroom, hence further adding value to the property.

Interested in having a chat on how we can work together?  Kindly email me at tan@castle-avenue.com.

Wei Min’s article: Foreigner Buying Property in New York, 8 Questions That Matter

What We Do

We focus on global investors buying Manhattan condos for portfolio diversification and long term return-on-investment.
1) Identify the right buy based on objectives
2) Manage the buy process
3) Rent out the property
4) Manage tenants
5) Market the property at the eventual sale