Singapore-based serviced residence operators Ascott and Frasers Hospitality Group are looking set to break into new geographic markets.
The Ascott will make its South America debut with the 92-unit Citadines VN Jardins São Paulo (opening 4Q2017) and 122-unit Citadines VN Faria Lima São Paulo (opening 2020), both to be franchised and operated by local real estate company Vitacon.
Renderings of Citadines VN Jardins São Paulo (left) and Citadines VN Faria Lima São Paulo
Explaining the move, CEO Lee Chee Koon said: “We see strong potential to scale up Ascott’s presence in Brazil given its status as the powerhouse of South America, accounting for close to half of the region’s FDI.
“Brazil’s FDI hit a record high in December last year, reaching US$15.4 billion. This signifies great opportunities for serviced residences as the region continues to attract corporations and business travellers.”
Lee added the group will continue exploring opportunities in new markets including Brasília, Rio de Janeiro, Belo Horizonte, Argentina, Chile and Mexico. It is aiming for 10,000 units in South America in the next five years.
Fraser Suites West Bay, Doha studio
Meanwhile, Frasers announced it will enter the Saudi Arabian market for the first time with properties in Jeddah, Khobar and Riyadh, as government plans to develop attractions and improve visa issuance are forecast to boost the country's tourism.
Africa will also receive its first Frasers properties with openings in Nigeria and the Republic of Congo. Citing World Bank forecasts for economic growth in Sub-Saharan Africa to rebound to 2.9 per cent in 2017 and rise above 3.5 per cent by 2018, Frasers stated the continent is “a key focus of the group’s global growth strategy”.
With the 398-unit Fraser Suites West Bay in Doha in its pipeline too, Frasers Hospitality Group will altogether roll out eight new properties and boost its inventory to more 1,500 units in the Middle East and Africa.