Singapore's Frasers Hospitality launched its flagship residence in
Beijing in the midst of this year's Olympics.
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Called Fraser Suites CBD,
Beijing, the service apartment is also Frasers' first wholly-owned property in China.
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% i$ q& u4 N3 A6 b0 B0 _Hotels in
Beijing saw fewer visitors when China imposed visa restrictions on foreigners prior to the Olympic Games.
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3 J8 Z0 u( S) Y7 u" C! ~But Frasers Hospitality CEO Choe Peng Sum said the post-Olympics outlook for the extended-stay market is promising.
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4 O5 P- o/ d8 M1 I" t/ [He said: "Especially in emerging market, I see a lot of consultancy groups, manufacturing groups from the States - like Microsoft and Intel - they come here and stay.... shipping, petrochemicals, they come in here, they set up their business for 3, 4 months before they fly back. They need an apartment, they need a home and that's where we see great demand for it. There is a pent-up demand for the service residences."
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8 O1 E2 V$ p7 ]5 @! a' nLocated in the heart of the Central Business District, Fraser Suites CBD is part of a mixed development that also includes offices, residential towers and a retail mall.
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% c1 m1 l2 Y( p- p2 a0 T( JThe 23-storey building was bought for US$135 million and its value has since appreciated "substantially", said Mr Choe, without giving details.
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Frasers has set its sights on second-tier cities like Chengdu, Chongqing and Dalian.
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Mr Choe said: "I feel that a lot of the secondary cities like Chengdu, Chongqing and Dalian are looking forward to investments.....land prices (there) have not come up as high, we see that as a potential."
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* M; }8 W4 w5 u, m4 B8 \Frasers has plans to expand its portfolio to up to 20 properties before the end of 2010. - CNA/ir
