Frasers Hospitality undertaking ambitious expansion plans

Serviced apartment chain Frasers Hospitality has said it is undertaking its most ambitious expansion project yet.

It announced plans to add 4,300 serviced apartment units to its current inventory in the next two years, bringing the total number of units to more than 9,000.

The company is kicking off its aggressive expansion plan with the launch of Fraser Residence Orchard.

Fraser Residence Orchard is the company’s fourth serviced apartment in Singapore.

It took over the property from The Ascott in November last year and refurbished it for S$6.5 million.

With occupancy rates for most of Frasers’ apartments at 80 per cent, it plans to add 25 new properties over the next two years in gateway cities like New Delhi, Istanbul, Suzhou and Chengdu.

And by 2012, the company aims to manage a total of 64 properties across 37 cities.

Properties under its management have grown to 39 in 21 cities in the past decade.

Despite a threat of nuclear radiation leak, its Japanese properties are faring well with 90 per cent occupancy rates.

But that is not the case for its operations in Bahrain, which is currently in the eye of a political storm that is sweeping the Middle East.

Choe Peng Sum, chief executive officer, Frasers Hospitality, said: “Our Bahrain property has been hit in a sense that we were experiencing occupancies of 90 per cent, right now it’s about 40 per cent. So hopefully the situation will ease up.”

Source : Channel NewsAsia – 24 Mar 2011

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