As part of the Group’s strategy to generate higher returns through active asset enhancement
programmes, the property in Perth, Citadines St Georges Terrace Perth, completed its refurbishment
in 1Q 2014 improving its room amenities and addressing recurring guest feedback. Despite the
slowdown in production from oil and mining industries, the property outperformed most of its peers
having maintained a high occupancy of approximately 82% for FY 2014. Overall RevPAU increased
by 10% from S$157 to S$172 YoY mainly due to higher demand for the newly refurbished apartments.
2015 Outlook
According to EIU, Australia’s GDP is expected to grow 2.8% in 2015. The Organisation for Economic
Co-operation and Development (OECD) predicts that economic slack may persist and unemployment
rate will not begin to edge down until 2H 2015.
In Perth, market conditions are expected to improve in 2015 as the economy diversifies away from
the natural resource industries into sectors that offer further growth, namely agriculture, tourism and
international education. Despite the new supply of hotels over the next three years, majority of the
committed pipeline belongs to the luxury segment while new supply in the mid-scale category
remains limited.
In Sydney, the outlook for the hospitality sector remains very positive, underpinned by strong
corporate demand and rising inbound visitors. Significant new infrastructure will enhance the
attractiveness of the location, while limited new supply will likely improve occupancy rates at our
properties. We expect the properties in Australia to enjoy stable and healthy operational performance
in 2015.
Belgium
2 Properties 323 Units
S$’million
Total Revenue (2014)
12.9
Total Gross Profit (2014)
3.1
Valuation as at 31 December 2014
58.2
Ascott Reit owns two freehold serviced residences in Brussels. The 154-unit Citadines Toison d’Or
Brussels is located in the shopping district of Avenue Louise, close to the Royal Palace and major
embassies. The 169-unit Citadines Sainte-Catherine Brussels commands a prime location in the
heart of the historical city near the famous flower market and Grand-Place, which has an impressive
Flemish baroque architecture.
The average length of stay at our properties in Brussels is less than one month.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Citadines Sainte-Catherine Brussels
6,382
5,878
26.7
Citadines Toison d’Or Brussels
5,599
4,656
23.5
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Citadines Sainte-Catherine Brussels
102
94
Citadines Toison d’Or Brussels
97
80
Operations Review
66 | Ascott Residence Trust Annual Report 2014
