Frasers Hospitality on track to double in size in China
Frasers Hospitality is on track to double its operating properties in China with the grand opening of Modena by Fraser Changsha.
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 economy to 25 operating properties across 15 cities by 2021.
“The upcoming openings across tier one and tier two 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 Choe Peng Sum, chief executive, Frasers Hospitality.
China’s economic advancement is likely to continue at an expected average rate of 6.4 per cent between 2017 and 2021.
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.
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 properties in more than 80 cities with over 23,600 keys.