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Frasers Hospitality bullish on China's expansion

By Zhao Tingting (chinadaily.com.cn) Updated: 2016-05-05 09:54

Singapore-based Frasers Hospitality unveiled its plan to open 10 more properties in China's key cities, according to the company's CEO Choe Peng Sum.

"The expansion of our portfolio in China reflects not only our success in meeting the evolving needs of China's buoyant domestic and international travel market, but also clearly demonstrates our confidence in China's steady rise as a global economic powerhouse", Choe said at the opening ceremony of Fraser Place Tianjin on Friday.

The global hospitality asset management and operations group established presence in China in 2005 with Fraser Place Shekou Shenzhen.

"Altogether we have 14 in operations now. We will open another 10 in China's cities where Frasers has an established presence, Tianjin, Wuxi, Chengdu, Shanghai and Shenzhen, and new market launches in Nanchang, Dalian and Changsha," said Choe.

The strengthening of Frasers Hospitality's portfolio, which is right on track to reach its goal of 30 properties with 7,000 units, in China is a significant contributor to its global expansion target of 30,000 units by 2019.

Choe expressed his belief in China's economic development and transition, and added that China can maintain its growth.

Although China lowered its growth target this year, "frankly speaking, 6.5 percent GDP growth is very high compared to a lot of countries all over the world."

"China has a big population, when you have a big enough population, you have an internal consumption that is able to sort of support the growth of economy. The government has put in place infrastructure not only for the first-tier cities but for second- and third tier-cities, that also forms a very good backbone for future growth," Choe said.

About China's current slowdown, Choe said: "I still feel that although the world economy is very flat, a lot of China's slowdown is due to government self-imposed methods to have a soft-landing. In other words, if the government didn't impose these controls, the country could enter a bubble economy, which means very fast growth and then a hard-landing which is even worse."

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