Indonesia’s buoyant economy has prompted Singapore’s Frasers Hospitality to make its first major foray into Jakarta’s serviced residence market.
The company recently opened its first property in the capital and plans to have three more in the next three years.
Frasers Residence Sudirman added 108 units to the existing 4,500 serviced residences already in Jakarta.
Frasers is only the second Singapore hospitality company to venture into Indonesia. It is the latest entry into the growing serviced apartments market in the capital.
Last year, Indonesia enjoyed a 54 per cent jump in foreign direct investment – a sign that the largest economy in Southeast Asia is set to get bigger.
And serviced apartments, catering to long-staying executives and families, are expected to see higher demand.
Choe Peng Sum, CEO of Frasers Hospitality, said: “When we look at them we said ‘my, that’s a huge market for us” because they are doing over 80 per cent occupancy. That doesn’t discourage me.
“In fact, that encourages me – there’s a market for it. We are late in coming in – this will be our first property. But that makes us work harder.”
Frasers is bullish about its US$30 million investment, along with three other upcoming projects in Jakarta.
Its investment in Indonesia is part of its bigger plan to expand worldwide.
Its CEO, Choe Peng Sum, said: “The need for service apartments is tremendous. We’ve been experiencing 80 to 90 per cent (occupancy) in all our properties. In fact … (within) these 24 months, we’ll be expanding into another 28 properties. So by 2012, we should be able to hit close to 65 properties in 38 cities.”
As a home away from home, the service apartments will provide executives with a wider choice of accommation in major cities around the world.
Source : Channel NewsAsia – 2 Jun 2011