increased demand from both corporate and leisure segments in the year. In 2014, AEIs were carried
out by the Sponsor, the master lessee, on four properties in France, namely Citadines Castellane
Marseille, Citadines Presqu’île Lyon, Citadines République Paris and Citadines Place d’Italie Paris.
2015 Outlook
According to EIU, GDP growth in France is expected to increase slightly by 0.9% in 2015. Paris will
continue to remain as a top destination worldwide, drawing long-haul visitors from emerging
economies like Brazil, China and increasingly, the Gulf region. Travel trends continue to point to
France as one of the top destinations for tourism, driven in particular by the demand for French luxury
goods. Furthermore, major events such as the Paris Air Show, Roland Garros Tennis Open and the
Paris Fashion Week are expected to boost visitor numbers next year. In 2015, our Sponsor will
embark on the refurbishment of Citadines Tour Eiffel Paris, Citadines Montmartre Paris, Citadines
Prado Chanot Marseille and Citadines Antigone Montpellier.
Germany
3 Properties 430 Units
S$’million
Total Revenue (2014)
9.8
Total Gross Profit (2014)
8.6
Valuation as at 31 December 2014
119.3
Ascott Reit owns three freehold serviced residences in Germany. The 118-unit Citadines
Kurfürstendamm Berlin, the 146-unit Citadines Arnulfpark Munich and the 166-unit Madison
Hamburg are conveniently located in the respective cities’ central districts.
Citadines Arnulfpark Munich and Citadines Kurfürstendamm Berlin are on master lease
arrangements with Citadines Betriebsgesell-schaft mbH, a wholly-owned subsidiary of Ascott, while
Madison Hamburg is on master lease arrangement with a third-party operator, Madison Hotel GmbH.
Their remaining terms vary between seven and 15 years.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Citadines Arnulfpark Munich
2,182
2,114
34.0
Citadines Kurfürstendamm Berlin
1,718
1,679
21.1
Madison Hamburg
4,875
4,580
59.4
2014 Review
Germany’s economy, largest in Europe, remained stable amidst challenging fiscal climate. According
to EIU, Germany recorded GDP growth of 1.4%, low inflation at 0.9% and low unemployment rate of
4.9% in 2014.
The German hotel market recorded positive performance, with a 2.2% increase in occupancy levels,
a slight rise in ADR of 0.1% and an overall increase in RevPAR by 3.1% YoY. The hospitality market
continued to be bolstered by the large number of events and fairs in the main cities. The capital city,
Berlin, remained an attractive destination for tourists while Munich saw medical tourism growing due
to its renowned medical infrastructure, with a particular increase in the number of medical travellers
from the Middle East. Hamburg, the second largest city in Germany and a major industry and
transport hub in northern Germany, remained a choice leisure destination for both domestic and
overseas visitors.
Pursuing Growth | 71
