Singapore
3 Properties 497 Units
S$’million
Total Revenue (2014)
36.2
Total Gross Profit (2014)
19.8
Valuation as at 31 December 2014
565.0
Singapore remains a key and significant market for Ascott Reit. Our three properties, all centrally
located, remain popular with guests. Our flagship 146-unit Ascott Raffles Place Singapore, which is
located in a prime location in the city’s Central Business District, remains immensely popular with our
key corporate executives. Likewise, our 197-unit Somerset Liang Court Property Singapore, located
in Clarke Quay, a dining and entertainment hub, captures its fair share of families and corporate
groups. Our 154-unit Citadines Mount Sophia Property Singapore, which is situated in the heart of
Singapore’s arts, culture and learning district, provides a unique blend of leisure and work for our
guests.
The average length of stay at our properties in Singapore is more than four months.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Ascott Raffles Place Singapore
9,064
9,017
220.0
Citadines Mount Sophia Property Singapore
10,086 10,573
107.0
Somerset Liang Court Property Singapore
16,910 17,320
127.5
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Citadines Mount Sophia Property Singapore
179
188
Somerset Liang Court Property Singapore
235
241
2014 Review
Singapore’s growth remains lacklustre, weighed down by the patchy growth of the global economy.
According to Economic Intelligence Unit (EIU), Gross Domestic Product (GDP) grew by 2.8% in 2014,
compared with 3.9% in 2013. With corporates continuing to rationalise their travel budgets and
coupled with increasing new hotel supply in Singapore outstripping growth in demand, we saw a
slight decline in Average Daily Rate (ADR). Consequently, Revenue per Available Unit (RevPAU)
declined by 3% YoY, from $218 in 2013 to $211 in 2014. Despite the decline in RevPAU, average
occupancy for our three properties have exceeded 80% since 2013.
2015 Outlook
In line with MAS’ forecast, EIU predicts the Singapore economy to grow at 3.1% in 2015. Cost
pressures continue to squeeze margins, and the overall accommodation market in Singapore is likely
to remain challenging with more hotels opening in Singapore. We continue to focus on the long stay
segment by providing “a home away from home” to corporate travellers so as to avoid direct
competition with hotels. We continue to maintain high standards for our service quality and efficiency
to meet the challenges in the industry.
Despite the uncertain growth outlook, Singapore continues to remain a key market for corporates
worldwide, and occupancy of our properties is likely to remain strong. In addition, with Singapore
hosting the South East Asian Games in June 2015 at the newly opened Sports Hub as well as other
Operations Review
64 | Ascott Residence Trust Annual Report 2014
