Frasers Hospitality, a division of Frasers Centrepoint Limited, is on track to double its operating properties in China with the grand opening of Modena by Fraser Changsha today.
Strategically located in the vibrant capital of Hunan Province, the 354-unit Modena by Fraser Changsha was one of 14 properties slated to open over the next four years to meet rising demands for inbound and outbound travel in the country. The opening of new properties in the pipeline will deepen Frasers Hospitality's presence in the fast-growing cities of Shenzhen, Shanghai, Tianjin, Nanjing, Chengdu and Wuhan, while extending the group's footprint to new cities such as Dalian, Nanchang and Hefei.
"China is our fastest growing market and we are excited to double our inventory in the world's second largest economy1 to 25 operating properties across 15 cities by 2021. The upcoming openings across tier 1 and tier 2 cities in China reinforces Frasers Hospitality's confidence in the country's long-term growth potential. The international and domestic travel markets are expected to expand on the back of China's robust economic growth and rising incomes. To accelerate our growth momentum in the long run, we will also be strategically targeting second-tier cities such as Dalian, Nanchang and Hefei that are emerging as important centres for business and tourism," said Mr Choe Peng Sum, Chief Executive Officer of Frasers Hospitality Pte Ltd.
China's economic advancement is likely to continue at an expected average rate of 6.4 per cent between 2017 and 20211. China's economic progression has also given rise to a large middle class population with higher income levels. According to the World Bank, per capita GDP in China has risen from US$959.4 in 2000 to US$8123.2 in 20162. With rising income levels, Chinese travellers have become one of the biggest global spenders in the tourism sector, led especially by the millennials.
In a recent bespoke study commissioned by Frasers Hospitality to better understand the mindset of Chinese millennial travellers, 93 per cent of millennials were found to demand innovation in products as well as experiences. According to this market research, they are also most likely to embrace technology and learn about new products quickly, and have strong spending power. To cater to the growing travel demand of this segment, the launch of Modena by Fraser Changsha was preceded by Capri by Fraser, Shenzhen, a brand targeted specifically at millennial travellers which began operations in July 2017.
"As China's leading serviced apartment brand3, we will continue to leverage on cutting-edge technology to deliver personalised, differentiated and memorable travel experiences tailored to the needs of Chinese travellers. Our market research identified smart hotel services as the main factor that influences booking decisions among China's 400 million millennials. To enhance our engagement with tech-savvy guests across both online and offline touchpoints, we have integrated various initiatives such as e-Concierge services and specially curated e-travel guides into the Capri by Fraser experience. In addition, we recently refreshed the Modena by Fraser brand with an emphasis on simplicity, sustainability and holistic wellness for guests seeking a private sanctuary. Strengthening our brand offerings in China will also support the expansion of our brands globally by attracting Chinese travellers to our award-winning brands during their outbound travels," Mr Choe added.
Currently, Frasers Hospitality's portfolio in China includes properties across established and emerging cities, with serviced residences located in Beijing, Chengdu, Guangzhou, Nanjing, Shanghai, Shenzhen, Tianjin, Wuxi and Wuhan.
Frasers Hospitality's global portfolio, including those in the pipeline, stands at 148 properties4 in more than 80 cities with over 23,600 keys.
1 IMF - China's Economic Outlook in Six Charts, 15 August 2017, accessible here: https://www.imf.org/en/News/Articles/2017/08/09/NA081517-China-Economic-Outlook-in-Six-Charts
2 World Bank - GDP per capita (current US$), accessible here: https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?end=2016&name_desc=false&start=2000
3 Frasers Hospitality was named China's Leading Serviced Apartment Brand from 2013 to 2017 by World Travel Awards
4 Including properties under management contracts
About Frasers Property Limited
Frasers Property Limited ("Frasers Property" and together with its subsidiaries, the "Frasers Property Group" or the "Group"), is a multi-national owner-operator-developer of real estate products and services across the property value chain. Listed on the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST") and headquartered in Singapore, the Group has total assets of approximately S$38.7 billion as at 31 March 2020. Frasers Property's multi-national businesses operate across five asset classes, namely, residential, retail, commercial & business parks, industrial & logistics as well as hospitality. The Group has businesses in Southeast Asia, Australia, Europe and China, and its well-established hospitality business owns and/or operates serviced apartments and hotels in over 70 cities across Asia, Australia, Europe, the Middle East and Africa. Frasers Property is also the sponsor of two real estate investment trusts ("REITs") and one stapled trust listed on the SGX-ST. Frasers Centrepoint Trust and Frasers Logistics & Commercial Trust are focused on retail, and industrial & commercial properties respectively. Frasers Hospitality Trust (comprising Frasers Hospitality Real Estate Investment Trust and Frasers Hospitality Business Trust) is a stapled trust focused on hospitality properties. In addition, the Group has two REITs listed on the Stock Exchange of Thailand. Frasers Property (Thailand) Public Company Limited is the sponsor of Frasers Property Thailand Industrial Freehold & Leasehold REIT, which is focused on industrial & logistics properties in Thailand, and Golden Land Property Development Public Company Limited is the sponsor of Golden Ventures Leasehold Real Estate Investment Trust, which is focused on commercial properties. The Group is unified by its commitment to deliver enriching and memorable experiences to customers and stakeholders, leveraging its people, knowledge and capabilities from across markets to deliver value in its multiple asset classes For more information on Frasers Property, please visit frasersproperty.com.
About Frasers Hospitality
Frasers Hospitality, a member of Frasers Property Group, celebrates 22 years of offering memorable experiences to guests through its Gold-Standard serviced, hotel residences and boutique lifestyle hotels across Asia, Australia, Europe, the Middle East and Africa. Growing from two properties in Singapore to more than 140 properties in over 70 cities, Frasers Hospitality is now one of the world's largest and fastest-growing providers of serviced and hotel residences. Conceived with the lifestyle preferences of today's discerning business and leisure travellers in mind, the global hospitality operator has three Gold-Standard serviced residences offerings - Fraser Suites, Fraser Place and Fraser Residence, a modern and eco-lifestyle brand, Modena by Fraser, and a design-led hotel residence brand, Capri by Fraser. In addition, it operates two brands of upscale boutique lifestyle hotels in the key cities of UK, Malmaison and Hotel du Vin. With a remarkable list of accolades and awards as recognition of its success, Frasers Hospitality remains committed to anticipating the evolving needs of executive travelers and exceeding expectations with continuous innovation and intuitive service, creating a second home for guests where staff feel like family and residents feel like community. For more information on Frasers Hospitality, please visit frasershospitality.com.