Frasers Hospitality is eying a bigger share of the Chinese market with the addition 10 more properties across the country.
The Singapore-based serviced residence operator has signed deals for its first properties in the cities of Nanchang, Hefei, Dalian and Kunming, plus additional locations in Tianjin, Chengdu, Shanghai, Wuxi and Shenzhen.
Along with its recent openings in Wuhan and Wuxi, the expansion will add more than 2,400 new apartment units – almost doubling Frasers’ total Chinese portfolio to 26 properties and 5,900 units in 14 cities.
This makes China one of the fastest-growing markets for Frasers. And combined, the Northeast Asian countries of China, South Korea and Japan now make up one-third of the company’s total revenue.
“China’s high growth second- and third-tier cities are key growth areas for us and we will continue to extend our footprint in burgeoning cities where foreign direct investment and tourism are expected to increase exponentially in the coming years,” said Choe Peng Sum, CEO of Frasers Hospitality.
“Demand for our serviced residences has remained strong, with consistent occupancy of at least 80% since we first set foot in 2005 with Fraser Place Shekou Shenzhen and economic conditions are ripe for the ambitious doubling of Frasers Hospitality’s footprint over the next five years,” he added.
In addition to the company’s Chinese expansion, Frasers’ global pipeline will also see it open in Riyadh, Bengaluru, Brisbane and Frankfurt in 2015, Abuja, Berlin, Geneva and Yangon in 2016, and Johor Bahru, Balikpapan, Lagos, Tokyo and Gurgaon in 2017.