Frasers continue to build on hospitality

"These developments are in line with the group's strategy to meet the growing demand for premier residences in China's first-tier cities," said Jastina Balen, group branding & communications director of Frasers Hospitality Pte Ltd.

Balen added that the secondary high growth cities, where foreign investment and tourism are expected to increase in the next three years, will also be a priority.

"The successful step Frasers has taken in China has laid a solid foundation for the company to inject more funds and energy into its enlarged business in the Chinese market," she said.

"A continuous increase in the number of expatriates has, in turn, exacerbated the demand for premium serviced residences in Shanghai and other first-tier cities in China," said Balen.

The target customers for premium serviced apartments consist mainly of senior managers from multinationals and high-ranking diplomats, said Zhao Jun, general manager of Fraser Residence Shanghai, adding that the new residence has seen an occupancy rate of about 80 percent since it was re-launched at the end of May.

Balen said work is being done to seek partners and 11 contracts have been signed to launch projects in the first- and second-tier cities.

"Some projects will be cooperated with partners by using management knowledge and service as shares and some will be purchased as Frasers' properties," she said. But she didn't give details of these contracts.

Choe said Frasers' strategy is to deepen its presence not only in China's premier cities where it already has robust growth, but in its second- and third-tier cities.

Shanghai, which already has three properties with an average occupancy rate of 92 percent, will be Frasers' priority on the Chinese mainland. Fraser plans to launch two to three more projects in the city in the next three years, Balen said.

"The city has a great potential to top and its market share should be enlarged," she added.

Meanwhile, new projects will be launched in Chongqing, Xi'an in Shaanxi province and Kunming in Yunnan province by 2016. "What we need to do right now is to find right partners and right locations," Balen said.