Revenue Per Available Unit (S$)
FY 2014
FY 2013
Citadines South Kensington London
234
228
Citadines Trafalgar Square London
295
259
2014 Review
According to EIU, GDP growth for United Kingdom (UK) was 2.6% in 2014, considerably higher as
compared to 1.7% in 2013. It is evident that growth in the UK economy is gaining momentum. Despite
the uncertainties due to the ongoing Eurozone crisis, corporate travelers continued to travel to
London. Consequently, RevPAU of our properties in London grew by 11% in 2014 from S$222 to
S$246. Furthermore, in local currency terms, RevPAU at our properties improved 4% YoY, registering
a stronger growth than that of the London’s serviced apartment market, which saw an overall decline
of 4% in RevPAU for the same period, according to STR Global.
2015 Outlook
Driven by a resilient economy, buoyant business travel and a knock-on effect from the Rugby World
Cup happening in 2015, EIU expects the UK economy to grow at 2.5% in 2015. The Rugby World
Cup, which will take place between 18 September and 31 October 2015, could be a significant
demand driver for the hospitality sector. Overall occupancy for the sector is forecasted to pick up in
2015 with a 1.5% gain, taking occupancy to approximately 85% industry-wide. We believe our
strategically located properties are poised to enjoy some of London’s strongest occupancy rates in
the coming years.
We will commence the refurbishment of the lobby and all 129 units at Citadines Barbican London in
4Q 2015 so as to enhance the overall experience of our guests. As with the successful refurbishment
of the rest of our properties in UK, this will underpin future earnings to the Group when completed.
Vietnam
5 Properties 818 Units
S$’million
Total Revenue (2014)
37.9
Total Gross Profit (2014)
20.3
Valuation as at 31 December 2014
267.8
Ascott Reit owns five leasehold properties in Hanoi and Ho Chi Minh City in Vietnam: The 185-unit
Somerset Grand Hanoi is located in the Central Business District; the 90-unit Somerset West Lake
Hanoi is situated in scenic West Lake, a 10-minute drive from the business district; and the 206-unit
Somerset Hoa Binh Hanoi is well positioned next to the business and financial districts as well as the
flourishing Hoa Lac high technology development zone. The 172-unit Somerset Chancellor Court Ho
Chi Minh City and 165-unit Somerset Ho Chi Minh City are both strategically located in Ho Chi Minh
City’s District 1, a prime commercial, diplomatic and shopping district.
Operations Review
80 | Ascott Residence Trust Annual Report 2014
