Frasers Hospitality, the hospitality and lodging business unit of Frasers Property, recently sold some of its assets in Singapore while expanding its global presence. According to Eu Chin Fen, the company’s CEO since January 2023, this move is part of their international expansion strategy in the coming years. Eu previously served as CEO of Frasers Hospitality Trust’s (FHT) manager since its listing in 2014.
In early September, a consortium led by Hong Kong-based family office Atelier Capital Partners purchased the 313-room Capri by Fraser, Changi City hotel for $170 million. The hotel has since been rebranded as Dorsett Changi City Singapore, with Hong Kong-listed Far East Consortium International’s subsidiary, Dorsett Hospitality International (DHI) as the operator. Other shareholders in the consortium include Singapore-listed Heeton Holdings and Singapore family office Fortez Capital.
The hotel, which opened as a Capri in 2012, was sold to Frasers Property in 2014 for $203.4 million. It is part of a mixed-use development that includes Changi City Point shopping mall and has a remaining lease of 45 years. In March this year, FHT, which had the right of first refusal, turned down an offer from its sponsor, Frasers Property to purchase the property, leading Frasers Property to sell it to a third party.
“Real estate is a cyclical business, and it is important for us to recognize which of our properties have reached the end of their capital cycle and identify opportunities to reinvest that capital in other markets,” says Eu.
In May, Frasers Property sold the 72-unit Fraser Residence River Promenade to Singapore-listed Tuan Sing Holdings for $140.889 million. The serviced apartments on Jiak Kim Street opened in September 2023 and are part of a mixed-use development that includes Frasers Property’s 455-unit luxury condo Rivière, which was completed last year and fully sold.
Established 26 years ago, Frasers Hospitality currently manages over 16,000 serviced apartments and hotel rooms across 20 countries. The company owns and operates six different hospitality brands, including Fraser Suites, Fraser Residence, and Fraser Place, as well as Capri by Fraser, Moderna by Fraser, and luxury brand Malmaison, which it acquired in 2015.
“We are well-known internationally as a premium serviced apartment operator,” says Eu. “We have also shown that we can generate value from the assets we manage.”
Given the challenging global environment and rising operational costs, Frasers Hospitality is expanding its presence in existing markets through partnerships with established local players to increase revenue from management contracts, says Eu.
In the first half of 2024, the company launched three new properties in Bahrain, Chengdu, and Shanghai, with nine more properties scheduled to open in China and Vietnam over the next two years. In addition, it has also announced the signing of eight new management contracts this year alone, including three in Shanghai. Frasers Hospitality has also partnered with Chinese developer Poly (Sichuan) Investment and Development Co to open its first Fraser Place-branded project in Chengdu, offering 238 serviced apartments ranging from studio units to three-bedroom apartments.
In Bangkok, Thailand, Frasers Hospitality will be opening two new properties within the new US$3.9 billion ($5 billion) mixed-use development One Bangkok, developed by TCC Assets, a subsidiary of Thai conglomerate TCC Group, of which Singapore-listed Frasers Property is also a member. The two properties, Fraser Suites Bangkok and a 210-key white-label serviced apartment, are set to open in 2026.
“Our management business is highly scalable, and management fees make up a significant portion of our total revenue,” says Eu.
Over the next four years, Frasers Hospitality plans to open another 20 properties, including the nine properties set to open over the next two years. While the company intends to prioritize established markets and gateway cities, it is also exploring opportunities in emerging markets such as Indonesia, Cambodia, Vietnam, Malaysia, and the Middle East.
For instance, in February, Frasers Hospitality opened its third property in Bahrain, the 63-key Fraser Suites Al Liwan Bahrain, in partnership with Bahrain-based real estate developer Seef Properties. Eu also believes that there is potential to launch other Frasers Hospitality brands in the Middle East, including Capri. She is also optimistic about the market for long-stay accommodation in the region, especially with the challenges in the residential rental market in many major cities.
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“Long-stay lodging assets are becoming increasingly attractive and resilient as an asset class,” says Eu. “Our capital partners are also keen on investing in premium accommodation assets.”
In 2027, Frasers Hospitality plans to open Fraser Residences Taipei in Taiwan, with 200 serviced suites developed in partnership with Taiwanese real estate developer Hung Tai Group. The company will manage the serviced apartments upon completion.
In addition, Frasers Hospitality has also recently announced a partnership with Yotel to open the brand’s first property in Japan in early 2025. The site, which is located within walking distance of Tokyo Station and near various amenities, was acquired and developed by Frasers Hospitality.
“We are rethinking our brand proposition, particularly for our long-stay brands. It is time for us to offer more unique experiences beyond traditional hospitality services,” says Eu. “Travellers are now opting for longer stays, mixing business and leisure into a single trip, and are willing to pay premium rates for immersive hospitality experiences. This is where Frasers Hospitality is headed towards.”