FRASERS Hospitality is scaling up its hotel-residences brand in both Europe and Asia-Pacific in view of strong global demand for the hybrid offering that combines the full range of hotel facilities with the flexibility and conveniences of full serviced residences.
This is expected to triple the number of "Capri by Fraser" properties by 2018 from six currently.
Marking its entry into Germany, the hospitality arm of Frasers Centrepoint Limited officially launched the 153-unit Capri in Frankfurt on Friday. It is slated to open a Capri in Berlin in 2017. All this follows its recent foray in Spain where it opened a 97-unit Capri in Barcelona.
Frasers Hospitality will add another 10 hotel residences in Asia-Pacific over the next four years, bringing the total number to 17 properties with more than 3,500 units, including those in the pipeline.
"We see great growth potential for the Capri by Fraser brand in Europe, which is a highly mobile business environment, and believe it will continue to be a key contributor to our global expansion goal of 30,000 residence units by 2019," said Frasers Hospitality chief executive Choe Peng Sum.
Germany and Spain continue to be attractive destinations for business and leisure, ranking among the top five European countries that continue to attract foreign direct investment (FDI), according to the EY's Global Investment Monitor, 2015. Germany is among the top 10 worldwide destinations for tourism and culture while Spain saw a record of 65 million tourist arrivals in 2014.
Bridging the gap between conventional hotels and serviced residences, design-led hotel residence brand Capri by Fraser has gained traction since its 2012 inception with the opening of flagship Capri by Fraser, Changi City, in Singapore. The latter has been enjoying steady occupancy of more than 85 per cent. In Asia, a Capri was also opened in Ho Chi Minh City in 2013, in Kuala Lumpur last year, and in Brisbane earlier this year.
In Singapore and Kuala Lumpur, there has been a 15 per cent year-on-year growth in revenue per available room (RevPAR) in Capri properties with over 90 per cent occupancy rates, Mr Choe said. Capri will soon be introduced in Shanghai and Chengdu in China.
"We are delighted with how our Capri by Fraser brand has taken off in Asia-Pacific and now in Europe," he added. "A lot of effort was put into creating a product that appeals to Millennials, who today represent 20 per cent of international travellers and are expected to make 320 million international trips each year by 2020.
"It is specifically for this group of travel-savvy, Internet-dependent, spontaneous travellers who seek-out unconventional accommodation concepts that this tech-forward, e-efficient and intuitive brand was created, with a focus on providing more choice and enhancing work-life balance," he added.
Frasers Hospitality's global portfolio, including those in the pipeline, currently stands at 129 properties in 77 cities and more than 21,000 keys worldwide.
It also has three gold-standard serviced residences offerings - Fraser Suites, Fraser Place and Fraser Residence; a second-tier brand Modena. The group now owns two brands of upscale boutique lifestyle hotels - Malmaison and Hotel du Vin - through its acquisition of hotel chain group Malmaison Hotel du Vin in June.