Archives for posts with tag: Frasers Hospitality

Frasers Hospitality has opened its second property, Fraser Residence Menteng, in Jakarta, adding 128 Gold-standard serviced units to the capital’s business and diplomatic centre.

The hospitality arm of the Frasers Centrepoint Group plans to grow its footprint in Indonesia with the opening of another six properties in the nation’s capital by 2017.Fraser Residence Mendeng

Properties outside Jakarta are also in the pipeline.

In total, Frasers Hospitality will have an inventory of ten properties and over 1,700 serviced units in Indonesia.

With the increased Fraser presence, travellers can look forward to enjoying ten Gold-standard serviced residences in the Indonesian capital within the next three years.

“We are very bullish on Indonesia,” said Frasers Hospitality chief executive Choe Peng Sum.

“The Indonesian government forecasts GDP to grow 5.6 per cent in 2015.

“With its strong growth – GDP is projected to grow annually at 3.07 per cent until 2030 – and arrivals growing at about ten per cent each year, the country offers great potential for our Fraser brands which target professionals, managers and executives travelling on medium-term work projects.”

Indonesia has a masterplan to grow to become one of the ten largest economies by 2030.

“Our first property, Fraser Residence Sudirman Jakarta, opened in 2011 and has enjoyed occupancy exceeding 90 per cent, “continued Choe.

“We believe the Fraser Residence blend of comfort and security makes it ideal for business travellers who want a private sanctuary in the heart of the city.”

As Frasers Hospitality’s footprint expands in Indonesia, the other Fraser brands will also make their mark in the country: Fraser Suites, Fraser Place and Capri by Fraser, a design-led hotel-residence aimed at the millennial business traveller.

Strategically located at Menteng Raya in Central Jakarta, close to Thamrin, the city’s main business district, Fraser Residence Menteng is minutes from offices of multinational corporations, key tourist sites, shopping and dining.

While it is in the heart of the business district, Fraser Residence Menteng is an oasis from the hustle and bustle of the city for its guests.

It offers round-the-clock security, fitness centre, indoor spa, steam and sauna, lap pool, jet and wading pool.

Singapore’s Frasers Centre­point is pushing ahead with plans for a hotel real estate investment trust after picking up the Sofitel Sydney Wentworth for $202.7 million in a deal finalised over the weekend.
frasers centrepoint
The five-star hotel was sold by fund manager LaSalle Investment Management, which picked up the 436-room property for $130m four years earlier from Tourism Asset Holdings.

The sale was brokered by Sam McVay of McVay Real Estate and Craig Collins of JLL’s Hotels & Hospitality Group. The premium price achieved is expected to be repeated in a number of other Sydney hotel deals, notably as US group Starwood brings its Sheraton on the Park property on Elizabeth Street to market for about $450m through JLL.

Frasers Hospitality owns and operates hotels around the world and already has a local presence with a $252m portfolio, including the Fraser Suites Perth and Sydney and Fraser Place Melbourne, but the group is now buying other properties ahead of the float in Singapore.

Frasers has been bidding for hotels across Asia as it attempts to find high-profile landmark properties to anchor the fund.

Thai billionaire Charoen Siri­vadhanabhakdi won control of Frasers Centrepoint last year

http://www.businessspectator.com.au/

Frasers Hospitality has marked its Sweet 16th ‘Fraser Day’ by revealing the company’s massive growth plans are on track.

The company has gone from two properties and 400 serviced residences in 1998 to 92 properties and 15,500 serviced apartments today.

Frasers Hospitality Chief Executive Officer Choe Peng Sum says the company is on track to double its inventory to 30,000 serviced apartments over the next five years.Frasers Hospitality Chief Executive Officer Choe Peng Sum

Choe said, “It has been a challenging 16 years, with recession in 1998, the 9/11 crisis in 2001, SARS in 2003, and the Global Financial Crisis sparked off by the US subprime crisis and collapse of financial institution Lehman Brothers in 2008.

“But through it all, Frasers Hospitality grew at a compounded annual growth rate of 22%.”

Frasers Hospitality has three brands of gold-standard serviced residences – Fraser Suites, Fraser Place and Fraser Residence – as well as Modena by Fraser, targeted at the road warrior; and Capri by Fraser, a design-led hotel residence aimed at the e-generation. With the wide product offering and lifestyle choice, Frasers Hospitality has seen unbroken growth in its 16-year history and is well positioned to meet its goal to double in the next five years.

Besides the strong brand offerings, the recovering economy in the European Union will provide a good source of growth.

Choe said, “Property prices are recovering and we have made some favourable investments there.”

There is also strong demand for extended stay and very limited supply. Even in London, serviced residences make up only 6% of the total accommodation supply which is even less than Singapore where serviced residences account for about 10% of supply.

As a result, ‘serviced apartments in London tend to post an average weekly rate of about £900 to £1000 with occupancy usually at around 85%’, said a study by Colliers International.

The study, entitled ‘Focus on the London Serviced Apartment Sector’ said, ‘According to The Apartment Service Worldwide, the market is still considered under-[supplied with London having just 1.2 apartments per 1000 business visitors compared to New York (5.2), Hong Kong (5.3), Sydney (2.6) and Singapore (1.8).’

EMEA (Europe Middle East Africa) will see faster growth and while it makes up 18% of Frasers Hospitality’s inventory, this will rise to 21% by 2019.

With consistent economic growth forecast for the near time, conditions are ripe for the ambitious doubling of Frasers Hospitality over the next five years.

The International Monetary Fund’s World Economic Outlook released in Jan 2014 forecasts growth in the US economy of 2.8% in 2014 and 3.0% in 2015.

“The Euro area is turning the corner from recession to recovery. Growth is projected to strengthen to
1% in 2014 and 1.4% in 2015,” the report said. On China, the report said, ‘Growth in China rebounded strongly in the second half of 2013, due largely to an acceleration in investment. This surge is expected to be temporary, in part because of policy measures aimed at slowing credit growth and raising the cost of capital. Growth is thus expected to moderate slightly to around 7.5% in 2014–15.’

Choe said, “The toughest of these times was probably the global recession. We had started to expand in China and then the recession hit. We did a careful study and figured that the Chinese economy would grow even in those times, so we continued with our expansion unabated, and it has paid off.”

Frasers operates properties in Melbourne, Perth and Sydney, with a Brisbane hotel set to commence construction in the coming months.

 

source : www.spicenews.com.au/

Frasers Centrepoint Ltd (FCL) , a company controlled by Thai billionaire Charoen Sirivadhanabhakdi, is looking to raise up to S$600 million ($473 million) through the listing of a hospitality real estate investment trust in Singapore in the second quarter, sources said.Charoen Sirivadhanabhakdi

This listing would mark the first step toward the merging of property assets of Charoen’s business empire, which operates under the Singapore-listed FCL and his TCC Group, after the Thai tycoon won control of the drinks-and-property conglomerate Fraser and Neave in an $11 billion deal last year.

Charoen’s fortunes appear better than rival businessman Dhanin Chearavanont, whose retail firm CP ALL has become Asia’s most indebted food retailer after an expensive acquisition funded by a large foreign currency loan.

FCL’s planned real estate investment trust would hold serviced residences owned by F&N and other assets such as the InterContinental Hotel in Singapore, which Charoen’s TCC Group owns, sources said.

FCL, which split from Fraser and Neave into a separately listed property-focused company, has a market value of $3.2 billion, while Fraser and Neave is valued at $3.8 billion.

F&N returned S$4.73 billion to shareholders as part of a capital reduction last year.

If dividends are included, Charoen’s deal to takeover F&N is profitable especially after the split, which now reflects a better market value of its Singapore property business, one of the sources told Reuters.

In a research note last month, UBS also flagged the possibility of Charoen’s Thai Beverage selling its stake in the property business and taking a larger stake in F&N to focus on the food and beverage firm.

SERVICED RESIDENCES

FCL’s Frasers Hospitality owns serviced residences in Singapore, Europe, North Asia, Southeast Asia, the Middle East and Australia, offering about 8,000 apartments in more than 30 cities, according to its website.

FCL has picked DBS, HSBC, Morgan Stanley and United Overseas Bank as the main advisers on the deal, sources with direct knowledge of the matter said.

These banks also played a key role the F&N transaction with DBS and UOB providing the bulk of the financing.

“The deal could come as early as April, but all depends on the markets,” a source with direct knowledge of the matter said, adding the deal size could be between S$500 million and S$600 million.

A spokesman for FCL said the group has previously announced that it is exploring the possibility of a hospitality REIT, but declined to confirm the name of the advisers and the size of the deal. The banks were not immediately available to comment.

Seventeen years young. Born in Singapore. 86 properties across 44 key gateway cities worldwide. More than 15,000 serviced residences. Frasers Hospitality.

Fifty-three years and going strong. Graduated with distinction from Cornell University in New York. Over 30 years in the hospitality business. CEO of Frasers Hospitality. Choe Peng Sum.

To talk about Frasers Hospitality is to talk about Choe Peng Sum, the man who has been at the helm of one of the world’s leading serviced residences since its inception in 1996.

Indeed, Frasers is a young company, one which started with just two properties in Singapore before heading out into the global market to nowhere other than Seoul in 2002.

Eleven years later, Frasers has the privilege of claiming to be the fastest growing company in the hospitality industry, with the opening of its third operation ― Fraser Place Namdaemun ― in Seoul earlier this June.

And it is here in Namdaemun in the heart of downtown Seoul that Choe and more than 70 senior managers of Frasers have congregated for the 11th annual GM (general manager) forum.

“Each year, we hold it usually in cities where we have a new property, so this year, with the recent opening of Fraser Place Namdaemun Seoul in June, this city was the obvious choice,” Choe said in between a string of meetings and presentations throughout this week.Fraser Place Namdaemun Seoul

“This annual event is a great opportunity for GMs to meet and get to know each other. This is important as we need to be able to operate collectively in order to consistently deliver the brand promise,” he added.

Asked about the main theme of this year’s forum, the hotelier said, “Building the brand. It may sound rhetorical, but with evolving customer needs and a more competitive landscape, consistent brand building from all aspects is required.”

As he relishes his return to the Korean capital city, Choe reminisces, “Back in 2002 when we were still at a relatively early stage of growth with only two Singapore properties under our belt, we decided to open Fraser Suites Insadong as part of our vision of becoming a global player.

“As Asia’s fourth-largest economy, the prospects for the Korean serviced residence market are very bright indeed, especially with the influx of visitors expected to meet Korea’s goal of attracting 20 million international visitors by 2020.”

The fact that Frasers has been able to find such a strong footing in Seoul, which is seen by many as a tough challenge in the hospitality industry is very commendable.

“We have built a very strong base of residents here and Korea will continue to be a key growth market for Frasers in line with its global strategy to strengthen its footprint across North Asia,” Choe said, beaming with confidence. In this regard, he said his company is keen on expansion in Korea and beyond by introducing diversified brands, namely Modena, to serve as a second-tier serviced residences targeting “road warriors.” More recently, Capri was created with e-generation travelers mind.

On the whole, he said, there will continue to be a surge in corporate relocation activity, which will be from two areas: regional, generated from companies within Asia who are eager to capitalize on the economic growth in Asia, as well as international, reflecting a shift in strategy by MNCs (multi-national corporations) to send their employees to the Asia-Pacific region to capitalize on this growth, either through expansion, or acquisition.

“Our immediate plans are to stay focused on our growth strategy in strengthening our global footprint in markets where we have an established presence, as well as capitalize on first-mover advantage to venture into second- and third-tier cities where we see great growth potentials,” Choe said.

Frasers Hospitality (serviced apartments and hotel residences), has garnered 39 coveted international awards in only nine months, making it one of the most highly awarded serviced residence providers across Asia, Europe and the Middle East.Frasers

Frasers was most recently named Corporate Housing Provider of the Year for the second consecutive year at the Expatriate Management and Mobility Awards (EMMA) held in Singapore. The award was voted by a judging panel of professionals from multinational organisations within the mobility field, whose feedback was: “Frasers’ constant strive for service excellence and innovation to meet the evolving needs of the corporate traveller is fantastic.”

This comes hot on the heels of winning five World Travel Awards, which were conferred in recognition of its commitment to excellence. The group was named Middle East’s Leading Serviced Apartment Brand and Leading Serviced Apartments accolades were awarded to its properties in Bahrain, Dubai and Doha. In Europe, Fraser Residence Budapest was named Hungary’s Leading Serviced Apartments. Frasers also holds the current title as the World’s Leading Serviced Apartment Brand, as voted by travel and tourism officials worldwide.

Distinguished by the World Consulting and Research Corporation, not only as Asia’s Most Promising Brand 2012/2013, but also for Asia’s Most Promising Leader 2012/2013 for Chief Executive Officer Mr Choe Peng Sum, Frasers continues to receive recognition from the most influential organisations in the international travel industry as well as directly from travellers. Clear consumer endorsement of its exceptional service is reflected in the numerous Travellers’ Choice Awards and Certificates of Excellence it has garnered from TripAdvisor.

Among some of the notable awards this year are Best Serviced Apartment Provider of Singapore by Business Destinations, Best International Serviced Apartment in China by Golden Horse Award and Indonesia’s Leading Serviced Apartment and Suite by Indonesia Travel Tourism Awards.

Of particular note also are the awards that have been won by Frasers’ new urban-inspired hotel residence brand, Capri by Fraser, for its flagship property, Capri by Fraser, Changi City/Singapore, within just a year of opening. It has been named Best Airport Hotel and Top 5 Most Loved Hotels by AsiaRooms Hotel Awards and received the Green Hotel Award from Singapore Hospitality Association.Capri singapore

“We are very honored to be the recipient of so many industry accolades. Recognising management and service excellence, these awards not only endorse the hard work of our entire team but also our continued commitment to delivering Gold Standard services. We also see these as the valuable benchmarks that we measure ourselves against as we continue in our quest to grow Frasers’ global footprint,” said Mr Choe Peng Sum, Chief Executive Officer of Frasers Hospitality Pte Ltd.

Frasers Hospitality Pte Ltd’s current portfolio, including those in the pipeline, stands at 86 properties in 44 key gateway cities, and more than 15,000 apartments worldwide.

Fraser & Neave Ltd. (FNN), the real-estate developer that was the target of a takeover battle last year, is considering setting up a real estate investment trust made up of hospitality assets.

The company is “still evaluating the feasibility of launching a hospitality REIT,” Chief Financial Officer Hui Choon Kit said in response to Bloomberg queries about its plans.Frasers

Thai tycoon Charoen Sirivadhanabhakdi won control of F&N earlier this year, after his S$13.8 billion ($10.9 billion) offer edged out a bid from Overseas Union Enterprise Ltd. F&N, whose businesses range from soft drinks to shopping malls, said in June it may consider separating its property arm from its other businesses.

F&N is assessing proposals from investment banks seeking to manage a possible initial public offering of the REIT, which may take place next year, said three people with knowledge of the matter, asking not to be identified as the information is private. The IPO could include serviced apartments that operate under the Frasers Hospitality brand and hotels owned by Charoen, the people said.

The company’s property portfolio includes residential projects, shopping malls and business parks. It also consists of Fraser Centrepoint Trust, a retail real estate investment trust, and Frasers Commercial Trust (FCOT), which holds office properties located in Singapore, Australia and Japan.

Frasers Hospitality has properties around the world, and plans to open more serviced apartments in Europe, North America, the Middle East and Asia, according to its website. Under Bangkok-based TCC Land Group, TCC Assets has hotels in Asia, Australia, Europe and North America, which include the InterContinental hotel in Singapore, Le Meridien in Bangkok and Plaza Athenee in New York, its website states.

Recent hospitality IPOs haven’t performed well. Both Far East Hospitality Trust (FEHT) and Ascendas Hospitality Trust (ASHT), which made their trading debuts in 2012, have slumped about 15 percent this year. OUE Hospitality Trust (OUEHT), which listed last month, is unchanged.

source : http://www.businessweek.com/

Modena - Frasers Group

China will continue to be a key growth area for Frasers Hospitality Pte Ltd (Frasers), which is on target to double its presence in China to 23 properties including those in the pipeline within the next two years, strengthening its presence in Beijing, Shanghai, Guangzhou and Shenzhen as well as key second and third tier cities.

This was announced at the Grand Opening of the Gold Standard Fraser Suites Guangzhou, the city’s largest serviced residence. Primely located in the heart of the modern business district of Tianhe, Fraser Suites Guangzhou, which has been well received since it soft opened in February this year, comes hot on the heels of the refurbishment of Fraser Residence Shanghai.

Committed to meeting the evolving needs of international travellers to China, Frasers’ current China portfolio, which includes a strong presence in the key cities of Shanghai, Beijing, Guangzhou and Shenzhen, will further increase by the end of 2013 with the addition of Fraser Place Tianjin, Modena Wuhan, and Modena Wuxi.

These developments are in line with the Group’s strategy to meet the growing demand for premier residences in China’s world class first tier cities, as well as the secondary high growth cities where foreign direct investment and tourism are expected to increase exponentially in the next few years.

“China’s impressive growth is reflected in our own expansion to meet the fast growing demand for our Gold Standard serviced residences here. This is not only in the premier cities where we already have a robust presence, but also in the second and third tier cities, which are witnessing rapid infrastructure development to cater to the demand from the number of industries entering these markets1,” said Mr Choe Peng Sum, Chief Executive Officer of Frasers Hospitality Pte Ltd.

“Our commitment to deepening our presence in China is reflective not only in every new opening, such as Fraser Suites Guangzhou which establishes our foothold in such an important region, but also in ensuring that our properties are always at the forefront of meeting the needs of international travellers. This is seen in the extensive refurbishment of Fraser Residence Shanghai and also in our diversified portfolio of brand offerings that include the Fraser-branded serviced residences as well as Modena which we launched here in China to meet the extended stay needs of the growing number of road-warriors,” he said.

Also in the pipeline for the Frasers will be the launch of its fourth Modena property, Modena Wuhan in August this year, which will be strategically located in city centre of the industrial, financial, commercial and educational hub of central China.

Source : http://hospitalitybusinessnews.com/

frasersGlobal serviced apartment operator Frasers Hospitality is bent on fast expansion on the mainland after it reaped benefits from Beijing’s calls to curb extravagance in meals and business tours.

Chief executive Choe Peng Sum said the cost-saving plans by state-owned enterprises had brought a windfall for serviced apartment operators although the country’s intensified efforts to avoid wasting public money had a negative impact on the overall hospitality sector.

“We saw the support to our businesses from the SOE corporate clients,” Choe said. “And the businesses are coming up very strong.”

The new leaders in Beijing required government units and SOEs not to spend lavishly on dinners and business travel as part of efforts to weed out corruption. The campaign created demand for two or three-bedroom apartments as SOE employees share one suite during their business trips.

“We are capturing customers with different needs,” Choe said. “The business from SOEs is growing very quickly.”

Frasers Hospitality, a wholly owned subsidiary of Singapore-listed food, beverage and property group Fraser and Neave, now manages 13 properties across China with 3,300 rooms.

Choe said the firm would nearly double its presence on the mainland over the next 24 months by adding 10 more properties to its portfolio, stressing the mainland would be the major source of growth.

The serviced apartment operator expands through acquisitions, co-investments and management agreements.

Choe said the business from leisure travel now accounted for as much as 20 per cent of the company’s total.

Frasers Hospitality is aggressively moving to second-tier cities such as Dalian, Chongqing and Chengdu to further consolidate its foothold in the world’s second-largest economy. One-third of the properties managed by the company are in the country.

Admitting that competition in the mainland’s first-tier cities had become fiercer, Choe said the second-tier cities remained attractive since foreign and domestic firms increased their production on the mainland. “Foreigners are there to do businesses in China,” he said. “The results will be encouraging.”

Quest Serviced Apartments has emerged as the fastest growing serviced apartment provider in the world, although the sector remained in short supply in the Australian market in 2012.PaulConstantinouQUEST_140

The Global Serviced Apartment Industry Report 2013/14 revealed that the Australian company’s supply has risen by 28% in 2013 as compared with 2011.

It is followed by US-based Oakwood with 21.3% and Singaporean firm Frasers with 9.2%.

Other major players in the Australian market, after Quest, were revealed as Oaks Hotels & Resorts, the Mantra Group and Mirvac which is now part of Accor.

“Corporate customers are increasingly doing their business outside of major city centres, gravitating towards regional and suburban hubs where government infrastructure is supporting industry growth and development,” it said.

“In turn, this is driving demand for extended stay accommodation.”

However, the report also found that Australian serviced apartments remain in short supply as demand grows.

Global economic conditions present a major challenge for the sector with banks reluctant to fund new developments. In fact, the report found that, despite Australasian growth of 14.5% in the number of apartments since 2011, Australian serviced apartment supply actually declined in real terms against demand in 2012 after over a decade of consistent growth.

Operators highlighted obstacles as restrictive local planning schemes, excessive bureaucracy and lack of understanding around investment models with funding, land availability and competition from other property sectors also factors.

“The difficulties operators encounter raising the necessary capital for their projects reflects Australasia’s financial markets’ lack of understanding of serviced apartments,” Quest executive chairman, Paul Constantinou, said.

But despite these challenges, the sector will grow to 30% of the total Australian accommodation market in the coming years – up from 25% at present, and up from 10% in 1999.

In addition, it is expected to outperform the hotel sector over the next three years, according to Atchison consultants. The company has forecast returns of between 13% and 15% for serviced apartments as compared with between 10% and 11% for hotels.

Meanwhile, Australasia was revealed as the most expensive region in which to stay in a serviced apartment with studio apartments starting from US$114 per night.

Source : http://www.travelweekly.com.au