FRASERS Hospitality on Friday said it is eyeing a bigger share of the China market, with the addition of 10 serviced residences in the second-tier cities of Tianjin, Nanchang, Hefei, Dalian,Kunming, Wuxi and Chengdu, and two more in the first-tier Shanghai and Shenzhen.
The new residences add more than 2,400 units, almost doubling Frasers Hospitality's China portfolio and bringing it to 26 properties with over 5,900 units.
"This makes China one of the fastest-growing markets for Frasers Hospitality which, together with South Korea and Japan, currently makes up one-third of its total revenue," the company said.
"Demand for our serviced residences has remained strong, with consistent occupancy of at least 80 per cent since we first set foot in 2005 with Fraser Place Shekou Shenzhen... Economic conditions are ripe for the ambitious doubling of Frasers Hospitality's footprint over the next five years," said Choe Peng Sum, Frasers Hospitality CEO.
The growing demand for serviced apartments in China has been due to a higher uptake by business travellers who choose to stay in such accommodation even while on leisure trips. Leisure travellers, too, are picking them over traditional hotels, the company said.
Frasers Hospitality's new additions in China will be across its three brands: Gold Standard serviced residences (catered to extended stay residents on long-term assignments or are in the midst of relocating); Modena by Fraser serviced residences (for business executives who spend most of their time on the road); and Capri by Fraser hotel residences (a design-led brand which appeals to Millennial travellers' short- to mid-term accommodation needs).