2015 Outlook
According to EIU, Germany’s GDP is expected to grow 1.2% in 2015, while the forecasts for inflation
and unemployment are 0.6% and 5.0% respectively.
The capital city, Berlin, is an important leisure market for short trips and the domestic corporate
market. Citadines Kurfürstendamm Berlin saw an increase of room nights over 2014 and we expect
to reap higher returns from the refurbished property as well as the close proximity to the International
Congress Centrum. In Munich, we will continue to focus on corporate travellers that make up the
stable long stay business despite new hotel supply coming online in 2H 2015. Our property in Munich
is poised to benefit from a series of leading international trade fairs, exhibitions and events such as
Oktoberfest, BAU (trade fair for Architecture, Materials and Systems), Laser World of Photonics (think
tanks for Laser and Photonics), transport logistic (exhibition for Logistics, Mobility, IT and Supply
Chain Management) and IBA (trade fair for baking, confectionery and snacks). Additionally, the city
will continue to be a popular destination for leisure and medical travellers. Hamburg, a thriving
manufacturing and transport hub, will remain as one of Europe’s most popular destinations for leisure
and business.
Indonesia
2 Properties 407 Units
S$’million
Total Revenue (2014)
15.9
Total Gross Profit (2014)
5.7
Valuation as at 31 December 2014
100.1
Ascott Reit owns two leasehold properties in Indonesia. The 204-unit Ascott Jakarta and 203-unit
Somerset Grand Citra Jakarta are both located in Central Jakarta’s Golden Triangle business and
shopping district.
The average length of stay at our properties in Indonesia is about six months.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Ascott Jakarta
8,373
7,390
43.0
Somerset Grand Citra Jakarta
6,485
7,117
54.6
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Ascott Jakarta
113
102
Somerset Grand Citra Jakarta
90
100
2014 Review
Indonesia continued to experience steady economic growth, with GDP growing 5.0% in 2014,
compared with 5.8% in 2013, according to EIU. Nevertheless, the economic growth is considerably
higher and less volatile as compared to the country’s regional peers. In November 2014, Fitch
Ratings (Fitch) affirmed Indonesia’s Sovereign Credit Rating at an investment grade of BBB- with a
stable outlook. This rating affirmation by Fitch can be regarded as international recognition on
Indonesia’s commitment in maintaining economic stability through prudent fiscal policy amid global
uncertainties.
Operations Review
72 | Ascott Residence Trust Annual Report 2014
