#Exclusive* Frasers Hospitality grows presence in Malaysia

KUALA LUMPUR: Frasers Hospitality Pte Ltd, which has made its presence in 21 cities through 35 properties globally, plans to expand its brand in Malaysia, especially in the central business district (CBD), its chief executive said.

Speaking to theedgeproperty.com here on June 24 before the opening of the brand’s maiden project in Malaysia, Fraser Place Kuala Lumpur, its chief executive Choe Peng Sum (pictured) said the specification and design of a second property, Fraser Residence Kuala Lumpur, has been finalised.

Being developed by YNH Property Bhd, Fraser Residence Kuala Lumpur is coming up next to the Renaissance Hotel near the famed KLCC area. Choe said piling works are ongoing.

According to the YNH Property website, this is a 446-unit serviced residence featuring a sky gymnasium, infinity lap pool, whirl pool and sauna. Comprising two towers of one and two-bedroom units, the RM550 million project is expected to be completed in 2012.

Frasers Hospitality made its foray into the Malaysian market with Fraser Place Kuala Lumpur – a property the management claimed to be the country’s first and only gold standard serviced residence – in the Golden Triangle. Also developed by YNH Property, the 1.04-acre mixed development comprises  217 units of high-end serviced apartments, a retail arcade with 17,772 sq ft and a 16-storey office block. The RM300 million project is fully sold.

YNH Property has offered the purchasers of Fraser Place Kuala Lumpur a guaranteed gross return of 8% per annum for two years plus another three years (at the option of the YNH Property & Fraser Hospitality).

Frasers Hospitality, meanwhile, is also looking to manage a property that bears its recently-launched brand – Modena that focuses on modern and trendy lifestyle. This is a boutique hotel residence in Kuala Lumpur that caters to the need of the young executives, Choe said.

“We are currently in talks with a party for Modena in Kuala Lumpur… there is a market here. A lot of people are flying in. We hope to make the announcement by the year-end. We are also sorting out a property for our Fraser Suite,” he, who spearheaded the company since its inception in 1996, added.

Frasers Hospitality offers four lifestyle offerings - Fraser Suites, Fraser Place, Fraser Residence and Fraser Resorts. This brand is targeted at the corporate sector.

Globally, the management company has some 3,200 employees.

It soft opened the first two properties under the “Modena” brand in Tianjin and Shanghai about a month ago, Choe said, adding that Modena Hanoi will be ready next year while Modena Suzhou and Modena Singapore will be sooner, before 2010 bows out.

Frasers Hospitality also plans to open another 10 serviced apartments under the “Fraser” brand, bringing the company’s property portfolio to 47 properties in 31 cities.

Commenting on the relatively new serviced residence market in Malaysia, Choe said while the supply of serviced residence was lesser than that of hotels.

“Foreign direct investments and gross domestic product numbers is increasing and this indicates that the business will grow. The tourist arrival figure has also increased. The recovery is faster than what we thought and we are quite bullish on Malaysia.

“Hotel measures by occupancy, average rates and revenue per available room… we measure our business like this and also revenue income per sq ft. So we don’t go for big lobby or restaurant space as we reserve the space for bigger rooms. We also gain income for leasing out the dining space,” he noted.