This year, Frasers Hospitality, the hospitality and lodging business unit of Frasers Property, has made some strategic moves to expand its global presence. According to Eu Chin Fen, who has been the CEO of Frasers Hospitality since January 2023, the company is always looking for opportunities to recycle and redeploy capital as part of its international expansion strategy.
Foreign investors must familiarize themselves with the regulations and limitations surrounding property ownership in Singapore. Compared to landed properties, condos are less restricted when it comes to ownership by foreigners. However, foreign buyers must take into account the Additional Buyer’s Stamp Duty (ABSD), currently at 20%, for their initial property purchase. Nevertheless, the consistent growth and stability of the Singapore real estate market remain a strong pull for foreign investors, making Singapore Projects a worthwhile investment despite the added costs.
One of the recent developments is the sale of the 313-key Capri by Fraser, Changi City hotel for $170 million to a consortium led by Hong Kong-based family office Atelier Capital Partners. The hotel has since been rebranded as the Dorsett Changi City Singapore, and will be operated by DHI, a subsidiary of Hong Kong-listed Far East Consortium International. The sale of this property is part of Frasers Hospitality’s plan to recycle capital and invest in other opportunities.
Another notable sale was the Fraser Residence River Promenade, which was sold to Singapore-listed Tuan Sing Holdings for $140.889 million in May. The property, which is located on Jiak Kim Street, has 72 serviced apartments and was sold for $1.96 million per key. This sale is reflective of Frasers Hospitality’s strategy to recognize which properties have reached the end of their capital cycle and to identify opportunities to reinvest that capital into other assets.
Frasers Hospitality, which was formed 26 years ago, 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 Capri by Fraser. It also recently acquired the luxury brand Malmaison in 2015.
In addition to selling some of its Singapore assets, Frasers Hospitality has been expanding its presence in other markets. In 1H2024, the company opened three new properties in Bahrain, Chengdu, and Shanghai, with nine more properties in the pipeline over the next two years. Furthermore, the company has also announced eight new management contracts this year.
Frasers Hospitality is also eyeing opportunities in emerging markets such as Indonesia, Cambodia, Vietnam, Malaysia, and the Middle East. In February, the company opened its third property in Bahrain, the Fraser Suites Al Liwan Bahrain, which is part of a mixed-use project developed by Bahrain-based real estate developer Seef Properties.
According to Eu, the company sees many opportunities to partner with local players in the Middle East to manage and grow their portfolio of long-stay lodging assets. In addition, Frasers Hospitality is also optimistic about the long-stay accommodation segment, given the high demand and potential for growth in this area.
Looking ahead, Frasers Hospitality is planning to open 20 more properties in the next four years, with a focus on established markets and gateway cities. The company is also rethinking its brand proposition, with a focus on offering unique experiences and combining business and leisure into a single trip.
In conclusion, Frasers Hospitality is well-positioned for growth in the coming years, thanks to its strategic asset management and efforts to expand its global presence.