Overall, RevPAU of Ascott Makati and Somerset Millennium Makati slipped by 8%, from S$138 in
2013 to S$127 in 2014 due to the more competitive landscape. Colliers International estimated that
accommodation supply in the Metro Manila area increased by more than 4,000 units in 2014 alone,
as compared to the new supply in 2013.
2015 Outlook
EIU estimates that the Philippines economy will continue to grow at a relatively rapid rate of 6.6% in
2015. Robust household spending powered by remittances from Filipinos working overseas will be
the main growth factor for the country. The growth pace of the domestically driven economy will also
hinge on the government’s ability to disburse its funds into infrastructure projects.
Colliers International estimates that there will be an influx of an average of 3,580 units to be added
to the accommodation inventory in Metro Manila from 2015 to 2018.
Outlook remains rosy despite influx of new hotel rooms as arrival of foreign visitors will get a boost
with the country hosting the 2015 Asia Pacific Economic Cooperation (APEC) summit in November
2015 where over 4,000 foreign delegates are expected to attend. APEC ministerial meetings, which
have started as early as November 2014, are expected to give the number of tourist arrivals a lift. For
2015, the Department of Tourism is targeting to welcome 8.2 million foreign visitors.
As part of the Group’s robust asset management strategy, we have made plans to carry out phased
AEI at Ascott Makati starting in 4Q 2015. Apart from refurbishing the apartment units and the common
areas, the mechanical and electrical infrastructure of the property will likely be upgraded as well so
as to enhance the overall experience of our guests.
Spain
1 Property 131 Units
S$’million
Total Revenue (2014)
7.7
Total Gross Profit (2014)
3.2
Valuation as at 31 December 2014
54.1
Ascott Reit owns one freehold serviced residence in Barcelona under the Citadines brand. The
131-unit Citadines Ramblas Barcelona is located on the famous Las Ramblas boulevard, a top tourist
and entertainment district in downtown Barcelona.
The average length of stay at the property is less than one month.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Citadines Ramblas Barcelona
6,900
5,075
56.7
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Citadines Ramblas Barcelona
141
102
2014 Review
According to EIU, Spain’s GDP grew by 1.4% in 2014, having recovered from a negative GDP growth
of 1.2% in 2013. The Spanish economy is projected to gradually recover over the next two years with
domestic demand making an increasing contribution. Barcelona’s information and communication
technologies industry has emerged as the key economy driver after the city was chosen as the
Operations Review
78 | Ascott Residence Trust Annual Report 2014
