Frasers Hospitality on track to have 30,000 units by 2019

Frasers Hospitality is on track to meet its global target of 30,000 units by 2019, with the opening of 48 properties across Asia, Europe, the Middle East and Africa.

Almost half, or 21 properties, is in places where Frasers has not previously had a presence, such as Changsha and Nanchang in China, and Riyadh and Jeddah in Saudi Arabia, said the hospitality arm of mainboard-listed Frasers Centrepoint.

"Reaching the 30,000-unit growth mark in the next three years not only increases our portfolio by 30 per cent, but further anchors the group's presence in dominant cities worldwide as well," said Frasers Hospitality chief executive Choe Peng Sum in a statement.

He is looking at expanding the group's portfolio both organically as well as through acquisitions, which figured prominently in Europe, as reflected in its recent purchase and rebranding of four boutique hotels in key cities and university towns in Britain.

These hotels, along with two new properties, will add to the portfolio of 35 Malmaison and Hotel du Vin properties in Britain that Frasers Hospitality bought a year ago.

Following the group's recent launch of Capri in Barcelona, Spain, and Frankfurt, Germany, as well as Fraser Suites Geneva in Switzerland, Frasers Hospitality is also set to open its first properties in Berlin and Hamburg.

Listed Frasers Hospitality Trust, meanwhile, recently bought Maritim Hotel Dresden.

In the Middle East, occupancy has been consistently high since 2009 when Frasers Hospitality launched its first property in Dubai and Doha.

Owing to strong demand, Frasers Hospitality will increase its portfolio from four to 11 properties comprising more than 1,600 units in this region.

The opening of Fraser Suites Abuja in Nigeria later this year will mark Frasers Hospitality's venture into Africa. This will be followed by openings in Lagos and Congo as well.

In China, there is a slate of openings, starting with the 345-unit Modena by Fraser Changsha this year and the 259-unit Fraser Suites Dalian Europark and 174-unit Fraser Place Nanchang by 2017.

Elsewhere in Asia, a number of properties will open in Indonesia, Thailand, Singapore and Malaysia. They make up half of the 48 properties in the pipeline, including Frasers Hospitality's first serviced residence in Gurgaon, India, due to open in 2017.

"There have been quite a lot of (acquisition) activities for the last few months. We were very encouraged by that," Mr Choe told The Straits Times, adding that the 30,000-unit target could be exceeded.

"But at the moment, that's always been our target, so we will still aim for that."

A version of this article appeared in the print edition of The Straits Times on June 01, 2016, with the headline 'Frasers Hospitality on track to have 30,000 units by 2019'. Print Edition | Subscribe