Ascott secures four new signings and one opening under The Crest Collection while Frasers Hospitality opens two new China properties under Modena by Fraser

[SINGAPORE] Lodging sector players Ascott and Frasers Hospitality issued separate statements on Tuesday (Jun 3) announcing their expansion in Asia with new signings and openings.

 

Ascott, the wholly owned lodging business of CapitaLand Investment (CLI), secured four new signings and one opening under its luxury brand, The Crest Collection, in the past six months, amid rising demand for luxury travel. 

 

This adds more than 1,200 units to its portfolio, which now comprises 16 properties with more than 2,700 units, both operational and in the pipeline, across 11 countries and 13 cities, CLI said. 

 

Meanwhile, Frasers Hospitality, a Frasers Property unit, opened two new China properties under its Modena by Fraser brand. 

 

The additions are part of Fraser Hospitality&rsquo s efforts to grow its presence in mainland China and strengthen its leadership in the extended-stay segment.  

 

&ldquo The China market is central to our long-term strategy for Asia... Our two new Modena by Fraser properties represent a significant step in strengthening our presence in this region,&rdquo said Eu Chin Fen, chief executive officer of Frasers Hospitality. 

 

Ascott taps growing luxury travel market 

Among Ascott&rsquo s new additions under The Crest Collection is Sen/Ka Tokyo, the brand&rsquo s maiden signing in Japan that is set to open in the second half of 2029.

 

The brand&rsquo s expanded footprint in Asia also includes two China developments. They are Hong Yuan Hotel which opened in Haikou, Hainan province, at the end of 2024, and a property in Wuhan&rsquo s Donghu New Technology Development Zone slated to open by mid-2026.

 

The brand is making its debut in two Middle East countries.

 

Its first resort, Al Mahra Resort, is set to open in early 2027 in the United Arab Emirates. Its first Saudi Arabia property is slated to open in the country&rsquo s capital, Riyadh, in 2028.

 

Frasers Hospitality opens two China properties in line with Asia strategy

Modena by Fraser Shenzhen, the brand&rsquo s seventh property in China, is located in the heart of the Luohu district, Shenzhen, in the Greater Bay Area.

 

The residence, which soft opened on Mar 29, 2025, features 325 contemporary apartments ranging from studios to two-bedroom units that are designed with multi-functional areas to support short and long-term stays.

 

Housed in Shennan 1001, a landmark development in Shenzhen, the tower&rsquo s spiral facade takes inspiration from traditional Chinese scroll paintings.

 

As the city&rsquo s first property under the Modena by Fraser brand, it offers direct connectivity to Hong Kong and is minutes away from the Luohu, Wenjindu and Liantang border crossings. It is a short drive to Luohu port and is connected to Shenzhen Metro via lines 2, 5 and 8.

 

It includes lifestyle amenities designed to support active living and to facilitate community interaction, such as a pickleball court, a gym, yoga studio, relaxation lounge, lobby cafe and an outdoor barbecue area.

 

Modena by Fraser Wujiaochang Shanghai, the brand&rsquo s eighth China property, soft opened on May 20, 2025.

 

Located at the heart of the Yangpu district, Shanghai, it is close to Wujiaochang commercial hub as well as global tech companies, shopping centres and educational institutions such as Fudan University and Tongji Universities.

 

It offers 307 fully furnished studios and one and two-bedroom apartments ranging in size from 23 to 66 square metres.

 

Designed to enhance productivity and relaxation, the property features facilities such as a landscaped garden, a relaxation room, a yoga studio and a gym.

 

It also includes meeting spaces and a common room with amphitheatre seating, where guests can host business and social events, alongside a restaurant. It has access to multiple bus routes and metro lines 10 and 18.

The issuance, with OCBC as lead manager and bookrunner, is expected to be on or around May 28

 

HOSPITALITY player CapitaLand Ascott Trust (Clas) : HMN 0% has priced S$260 million in perpetual securities at 4.2 per cent, it announced on Wednesday (May 21).

 

The issuance is expected to be on or around May 28.

 

The move is part of Clas&rsquo S$2 billion multicurrency debt issuance programme established in September 2009. OCBC has been appointed the lead manager and bookrunner in the latest issuance.

 

The net proceeds will be used for the redemption of S$250 million in fixed-rate perpetual securities issued by DBS Trustee on Jun 30, 2015. It will also be used to refinance or repay CapitaLand Ascott Reit&rsquo s borrowings, and finance any asset enhancement initiatives or working capital requirements of the real estate investment trust.

70% of profits in the quarter were from stable income sources with the remaining 30% from growth income sources

 

[SINGAPORE] CapitaLand Ascott Trust&rsquo s : HMN -0.58%(Clas) managers said in a business update on Monday (Apr 28) that the trust&rsquo s gross profit rose 4 per cent year on year in the first quarter of 2025.

 

Gross profit from new properties in the quarter replaced the drop in gross profit from divestments in 2024, the managers said, driven by stronger performance from properties the trust renovated in 2024. These new properties include lyf Funan Singapore, acquired on Dec 31, 2024, as well as Japan hotels ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, both bought on Jan 31, 2025.

 

Seventy per cent of profits in the quarter were from stable income sources, the managers said, with the remaining 30 per cent from growth income sources. Such stable income sources included management contracts of longer-stay properties such as rental housing and student accommodation, as well as master leases and management contracts with minimum guaranteed income. Growth income was largely contributed by management contracts of hospitality properties.

 

Excluding acquisitions and divestments, Clas&rsquo s gross profit was 1 per cent higher on a same-store basis, said the managers.

 

In most key markets in the trust&rsquo s portfolio, revenue per available unit (RevPAU) for Q1 2025 grew year on year, with its Australia, Singapore, United Kingdom and United States (US) portfolios registering growth of between one and 12 per cent. Its Japan portfolio, however, registered an 11 per cent contraction on the year.

 

In the US portfolio, making up 19 per cent of the trust&rsquo s total assets, hotel RevPAU in the quarter climbed 11 per cent on the year to reach US$160, driven by strong leisure demand, an increased proportion of corporate bookings, as well as long weekends and major conventions.

ents towards the US might dampen international leisure travel, the managers said that a higher proportion of domestic guests would mean the trust&rsquo s hotels remain less affected.

 

The trust&rsquo s Singapore portfolio, which made up a further 19 per cent of total assets, saw serviced residences (SRs) and hotel RevPAU in the quarter inch upwards by 1 per cent year on year to S$183. On a same-store basis, however, RevPAU fell 3 per cent year on year.

 

This fall was due to fewer high-profile concerts, such as the one by Taylor Swift, or biennial events, such as the Singapore Airshow, under the meetings, incentives, conferences and exhibitions category that took place in Q1 2024, Clas&rsquo s managers said.

 

The portfolio&rsquo s performance was nevertheless mitigated by stronger operating performance from The Robertson House by The Crest Collection and long stays at SRs.

 

The managers expect that demand for corporate and relocation stays for the Singapore portfolio will be subdued in the second quarter of 2025, while transient demand could see an uplift during concert and event periods.

 

In Japan, the trust&rsquo s managers noted that the acquisition of two Japan hotels, ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae, would fully replace the income of four divested properties in the Japanese portfolio. The acquisitions would bring an accretive growth of 1.6 per cent to dividend per share on a pro forma basis from FY 2024, while raising blended net operating income by 4.3 per cent.

 

The managers noted that these hotels would be supported by leisure and business demand drivers, with ibis Styles Ginza Tokyo located in Tokyo&rsquo s shopping and entertainment district, while Chisun Budget Kanazawa Ekimae is situated in a popular site for domestic travel.

 

The trust reported a gearing ratio of 39.9 per cent, with an interest coverage ratio of 3.2 times. The trust said it is monitoring recent volatility and reviewing options for its S$250 million perpetual securities, which reset on June 30, 2025, with a view towards managing its capital structure.

 

Recent macroeconomic uncertainties are likely to impact Clas through raised costs, lower lodging demand and volatility in interest rates and foreign currencies, the managers said.

 

Even so, the trust&rsquo s diversified portfolio and its stable income sources, which comprise 60 to 70 per cent of gross profit, could mitigate this effect, Clas&rsquo s managers said.

 

Net asset value per stapled security was at S$1.11, with total available funds standing at around S$1.43 billion, said the managers.

CapitaLand Ascott Trust : HMN +0.58% (CLAS) is a stapled group consisting of CapitaLand Ascott Real Estate Investment Trust and CapitaLand Ascott Business Trust.

 

CLAS is the largest lodging trust in Asia-Pacific with an asset value of S$8.8 billion as at Dec 31. It is managed by CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management (the CLAS managers), both of which are wholly owned subsidiaries of CapitaLand Investment. 

 

On Feb 3, both the chairman and CEO of the CLAS managers increased their direct interest in the stapled trust. Chairman and non-executive independent director Lui Chong Chee acquired one million stapled securities at an average price of S$0.893 per unit, increasing his direct interest from 0.03 per cent to 0.05 per cent.

 

On the same day, CEO and executive non-independent director Serena Teo purchased 500,000 stapled securities at S$0.895 per unit, increasing her direct interest from 0.01 per cent to 0.02 per cent.

 

On Jan 27, CLAS reported that its H2 FY24 (ended Dec 31) gross profit increased 8 per cent from H2 FY23. Lui emphasised CLAS&rsquo commitment to delivering stable distributions to stapled security holders. He also highlighted that the strong performance in FY24 was driven by active portfolio reconstitution, operational maximisation and asset enhancements.

 

CLAS completed over S$500 million in divestments and about S$350 million in accretive investments in 2024. The proceeds were used to reduce debt and fund asset enhancement initiatives (AEIs). Lui also affirmed the focus on strengthening operating performance to enhance core distributions. 

 

He has been the chairman of the CLAS managers since April 2024, and has held several key positions throughout his career.

 

He was the managing director and CEO of Far East Orchard, previously served as the group CFO at Raffles Medical Group and held senior roles at CapitaLand and its subsidiaries. Before that, he was the managing director and senior vice-president at Citicorp Investment Bank (Singapore).

 

Teo has been the CEO of the CLAS managers since 2022. She previously served as deputy CEO and held various leadership roles at Ascendas Funds Management, Ascendas Services and Ascendas Land. Her experience also includes positions at EDB Investments and Chartered Semiconductors Manufacturing.

 

With the FY24 results, Teo highlighted that while the CLAS portfolio reconstitution strategy may cause short-term income fluctuations, it will enhance long-term value for stapled security holders.

 

She also maintained that despite macroeconomic uncertainties, CLAS remains optimistic about lodging demand and is focused on strengthening its portfolio and earnings through geographic diversification, varied lodging asset classes and disciplined capital management.

 

As at Dec 31, CLAS&rsquo international portfolio includes 100 properties with more than 18,000 units in 45 cities across 16 countries in Asia-Pacific, Europe and the United States. Most of these properties operate under the Ascott, Somerset, Quest and Citadines brands. 

 

For its FY24, CLAS&rsquo revenue per available unit (RevPAU) increased 5 per cent from S$148 to S$156. Total core distribution for H2 FY24 increased 5 per cent from H2 FY23 to S$117 million, bringing the FY24 core distribution per stapled security (DPS) to 5.49 Singapore cents, 1 per cent higher than FY23. The core DPS excludes non-periodic items from realised exchange gains on cross currency swaps and foreign currency loan repayments.

 

The CLAS managers highlighted that stronger operating performance, acquisitions, and completed AEIs helped offset the impact of divestments, ongoing AEIs, higher financing costs, and depreciation of most foreign currencies against the Singapore dollar.

 

CLAS maintains a proactive and prudent capital management strategy with an average debt cost of 3 per cent per annum as at Dec 31. Its gearing is 38.3 per cent, well below the 50 per cent limit set by the Monetary Authority of Singapore (MAS), with CLAS maintaining around S$1.6 billion in cash and available credit facilities.

According to SGX filings, Serena Teo, CEO of CapitaLand Ascott Trust ' s (CLAS) trustee-manager, bought 500,000 stapled securities at $0.895. This more than triples her direct interest in CLAS from 0.005% to 0.018%.

 

Lui Chong Chee, chairman of CLAS&rsquo s manager, bought 1,000,000 stapled securities at $0.8925. This almost doubles his direct interest in CLAS from 0.027% to 0.053%.

 

In CLAS&rsquo s FY2024 results on January 27, CLAS announced its commitment to distribute stable core distributions, through enhancing core distribution income from operating performance and distributing non-periodic gains and/or divestment gains when appropriate. 

 

CLAS&rsquo s core distribution per stapled security (DPS) for 2HFY2024 rose 3% y-o-y to 3.08 cents while DPS for the same period stood at 3.55 cents, taking total DPS for the FY2024 to 6.1 cents.

The purchase is funded by yen-denominated debt and the proceeds from its divestment of four properties in Japan

 

CAPITALAND Ascott Trust (Clas) : HMN 0% has acquired two freehold limited-service hotels in Japan &ndash ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae &ndash for 21 billion yen (S$178.5 million). 

 

The acquisition is part of Clas&rsquo portfolio reconstitution strategy to enhance the quality of its portfolio and deliver stable returns to its stapled securityholders, said Serena Teo, chief executive of its managers (CapitaLand Ascott Trust Management and CapitaLand Ascott Business Trust Management) on Friday (Jan 31).

 

The deal is priced at an 8.3 per cent discount to independent valuation, and has a distribution per stapled security accretion of 1.6 per cent on a FY2024 pro forma basis. Meanwhile, the blended net operating income (NOI) yield of the acquisition is 4.3 per cent in FY2024.  

 

The purchase was funded by yen-denominated debt, as well as the proceeds from Clas&rsquo divestment of four properties in Japan, adopting a natural hedge against currency fluctuations.

 

It divested Infini Garden, a rental housing property in Fukuoka, and three hotels in Osaka &ndash Hotel WBF Honmachi, Hotel WBF Kitasemba East and Hotel WBF Kitasemba West.  

 

Teo noted that the FY2024 NOI yield of the two hotels is 230 basis points higher than the blended exit yield of about 2 per cent for the four previous divestments in Japan. 

 

She said: &ldquo By swiftly redeploying divestment proceeds into these higher-yielding assets, we have fully replaced the income from the four divested properties. Clas continues to focus on delivering growth by ensuring our portfolio is well-positioned to capture lodging demand.&rdquo

 

Its managers anticipate strong demand for the newly acquired hotels in Japan, due to their prime locations.

 

The 224-unit ibis Styles Tokyo Ginza is situated in the capital&rsquo s premium shopping and entertainment district. Meanwhile, the 392-unit Chisun Budget Kanazawa Ekimae is just a 10-minute drive from the historical city&rsquo s central business district, as well as major event and sports venues.

 

Following the recent acquisition, 18 per cent of Clas&rsquo total assets are located in Japan. Its Japan portfolio now comprises two serviced residences, four hotels, 23 rental housing properties and a student accommodation property. 

 

In FY2024, Clas&rsquo Japan properties achieved the strongest performance among its key markets, with revenue per available unit for its serviced residences and hotels there growing 37 per cent year on year to 23,987 yen in the fourth quarter of 2024.

 

Over the past 12 months, Clas has made investments totalling about S$530 million. This includes the recent purchase of ibis Styles Tokyo Ginza and Chisun Budget Kanazawa Ekimae.

 

These acquisitions offer higher yields than Clas&rsquo divestments, boosting its income distribution, it noted.