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Frasers Hospitality, a division of Frasers Property, has been actively expanding its global presence by divesting some of its properties in Singapore while simultaneously increasing its presence overseas. According to Eu Chin Fen, the CEO of Frasers Hospitality since January 2023, this is part of their strategy for international expansion. She has previously served as the CEO of Frasers Hospitality Trust’s manager since its listing in 2014.
In September, a consortium led by Atelier Capital Partners acquired the 313-key Capri by Fraser, Changi City hotel for $170 million, with a price of $543,131 per key. The hotel has since been rebranded as Dorsett Changi City Singapore, with Hong Kong-listed Far East Consortium International subsidiary, Dorsett Hospitality International (DHI) as the operator. DHI is one of the shareholders in the consortium, along with Singapore-listed Heeton Holdings and Singapore family office Fortez Capital.
In addition, Frasers Property also sold the 313-key hotel Capri by Fraser, Changi City in May to a third party after its REIT, FHT, declined an offer from the sponsor to purchase the property. According to Eu, this is part of their strategy to recycle capital and identify opportunities for growth.
Frasers Residence River Promenade, a serviced apartment managed by Frasers Hospitality, was also sold in May to Singapore-listed Tuan Sing Holdings for $140.889 million. With 72 serviced apartments, this translates to $1.96 million per key. The serviced apartments opened in September 2023 and are part of a mixed-use development that includes Frasers Property’s 455-unit luxury condo Rivière.
With over 16,000 serviced apartments and hotel rooms in 20 countries, Frasers Hospitality has six different hospitality brands under its umbrella. The group has demonstrated its ability to deliver value to the assets they manage and is known internationally as a premium serviced apartment operator.
In order to continue growing their revenue, Frasers Hospitality is partnering with established local players to widen its footprint in existing markets. They have opened three new properties in Bahrain, Chengdu and Shanghai in 1H2024, with nine more to open within the next two years in China and Vietnam.
This year, Frasers Hospitality has also announced eight new management contracts, with three in Shanghai, two in Bangkok, and one each in Chengdu, Bahrain, and Taipei. They are also eyeing opportunities in emerging markets such as Indonesia, Cambodia, Vietnam, Malaysia, and the Middle East.
Eu believes that the long-stay accommodation segment is a promising market, given the challenges in the residential rental market and the keen interest of their capital partners in investing in premium accommodation assets. In 2027, they will open their first premium serviced apartment in Taipei, Taiwan, in partnership with Taiwanese real estate developer Hung Tai Group.
The group is also rethinking its brand proposition, especially for their long-stay brands. They are looking to offer unique experiences beyond traditional hospitality services to cater to travellers who are looking to mix business and leisure into a single trip. Eu believes that this is the direction Frasers Hospitality should go in order to provide memorable experiences to its guests.