Serviced residences operator Frasers Hospitality will embark on an ambitious expansion into the Middle East with plans to manage 10 properties in the region over the coming years.
It will open three developments by the end of next year, according to Choe Peng Sum, CEO of Frasers Hospitality. Two of the properties will be located in Riyadh and Khobar in Saudi Arabia, while the other will be sited in Suhar, Oman.
Frasers is also keen to enter new markets such as Kuwait and Abu Dhabi as well as strengthen its presence in Doha, Dubai and Bahrain. Currently, it is managing three developments in Bahrain, Doha and Dubai.
Choe said that Frasers’ 138-unit property in Doha has already achieved an occupancy rate of above 90 percent while in Dubai, some 80 percent of units are now occupied. At the same time, the property in Bahrain has achieved an occupancy rate of 60 percent, an improvement from last year’s 40 percent.
“There could be problems in Iran or Iraq but really the whole Middle East is huge and if I look at Doha for instance, or Qatar, the amount of wealth and inherent riches is going to make this place continue to grow,” said Choe, who is optimistic about the region.
In addition, Frasers is also looking at the potential of Yangon, Myanmar’s commercial centre, especially now that the country is an active market and attracting investor interest.
“There is a really huge demand with very severe shortage of hotels and serviced apartments. All of them are right now in the high 90s (in terms of occupancy rate), going into full occupancy and charging very high rates. At the same time, we are going at it very carefully,” added Choe.
Image: The facade of Fraser Suites Doha.
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