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Frasers Hospitality confident about Chinese outlook

By Zhao Tingting (chinadaily.com.cn) Updated: 2015-11-26 11:10

Frasers Hospitality confident about Chinese outlook

Choe Peng Sum, CEO of Frasers Hospitality. [Photo provided to China Daily]

Singapore-based Frasers Hospitality has an established presence in China with 14 properties across key cities such as Beijing, Shanghai and Shenzhen. And 16 new properties in China are in the pipeline over the next few years.

Choe Peng Sum, CEO of the global hospitality asset management and operations group, showed his confidence in China's economic growth and the Chinese market in an exclusive interview with China Daily website.

1.China is facing the pressures of a slowing economy; will it affect your expansion plan in the country? How do you see China's economic outlook and the market? What's your investment strategy?

As the second largest and strongest economy in the world, China has always been a key growth area for us, particularly so in emerging cities. These are the cities that are experiencing rapid growth as leading international companies increasingly shift their focus towards these cities, which offer new business opportunities, lower overhead costs and more attractive tax incentives.

While China’s recent economic growth has been moderating, Frasers Hospitality is taking a long-term approach towards it. Foreign interest such as the likes of MNCs in these cities will drive corporate travel and the demand for premier serviced residences with the arrivals of foreign senior management and expatriates overseeing new projects. These MNCs form up to 90 percent of Frasers Hospitality's clientele in China and even with a slowdown in growth rate, it is still decent as compared to other countries.

In fact, currently, secondary cities are growing faster than primary cities and infrastructure developments and expansions to airports are underway to cater to the growing demand. Our focus on emerging cities is in tandem with our plans to continue enhancing our offerings in the key cities where we already have an established presence.

2. What role does the Chinese market play in your global business? What's your prediction for the future?

China is one of the fastest-growing markets for Frasers Hospitality and cannot be ignored. Our China expansion strategy is in line with our vision to be the leading global hospitality group known for its continuous innovation and intuitive service to anticipate and exceed the evolving expectations of international travelers.

Our properties have been very well received in China, with consistently strong occupancy of at least 80 percent since we first set foot in 2005 with Fraser Place Shekou Shenzhen. We are positive towards the demand for our premier serviced residences and are expected to remain strong.

Currently, Frasers Hospitality has an established presence in China with 14 properties across key cities such as Beijing, Chengdu, Guangzhou, Nanjing, Shanghai, Shenzhen, Suzhou, Tianjin, Wuhan, and Wuxi. We will also be adding 16 new properties in China over the next few years, including those in the pipeline. This will bring the portfolio in China to 30 properties with over 7,000 apartments and will be located in Changsha, Dalian, Hefei, Nanchang, Shenzhen, Suzhou, Tianjin, Wuxi, Xiamen, Chengdu and Shanghai.

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