Frasers Hospitality will open ten new gold standard serviced residences across China by 2009.
Of these ten properties, nine are management contracts with owners that include Yanlord, global private equity firm Carlyle, and COFCO, one of China's largest importers, manufacturers and exporters of food.
The company, a wholly-owned subsidiary of Frasers Centrepoint, will itself invest a total of US$130 million in a prime property at the heart of BeijingÂ¹s central business district. The 23-storey building was purchased in June and will open as Fraser Suites Beijing in April 2008 with 357 luxurious serviced residences. The building was purchased from Chinese conglomerate COSCO, a Fortune Global 500 company.
Frasers already operates two properties in Shenzhen. The 10 new serviced residences will be in Nanjing, Chengdu, Tianjin, Guangzhou, Shanghai, Hong Kong and Beijing.
"China is, simply, the biggest growth engine for the whole world economy," said Frasers' CEO Choe Peng Sum. "China's foreign direct investment grew 12% to US$31.9 billion in the first half of 2007; and its cumulative FDI since the start of its opening-up policy in 1978 is a stunning US$750 billion. This basically means lots of potential for our industry and for our brand."
Frasers Hospitality, a Singapore-based global brand of gold-standard serviced residences, targets business executives on medium- to long-term business projects.