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Ascott Residence Trust
Annual Report 2015
Overview
Sustainability
Business
Review
Portfolio
Details
Corporate
Governance &
Transparency
Financials &
Additional
Information
2015 Review
According to EIU, the French economy grew 1.1% in
2015 as compared to 0.2% growth in 2014. France
remained the second largest European economy
and the most visited country in the world, with close
to 83.7 million tourists in 2014 (2015 figure is yet to
be reported). In 2015, the French hospitality market
saw RevPAU increase marginally by 0.1%. With major
events including the Paris Air Show and Paris Fashion
Week, the hospitality market enjoyed sustained
demand from both corporate and leisure segments in
the year. The terrorist attacks in November 2015 led
to a three-month state of emergency declared across
the country. The impact of the attacks was greatly
felt by the hospitality market in the last two months
of 2015. Consequently, within Paris alone, occupancy
fell by 3.4 percentage points and RevPAU decreased
3.7% in 2015.
As all our properties in France are underpinned by
master leases, operational risks relating to the attacks
are mitigated. Master lease rental income remained
stable. In 2015, the AEIs carried out by the Sponsor,
the master lessee, at Citadines Tour Eiffel Paris and
Citadines Antigone Montpellier has been successfully
completed while ongoing AEIs at Citadines Montmartre
Paris and Citadines Prado Chanot Marseille are on
track for completion by 1H 2016.
2016 Outlook
According to EIU, GDP growth in France is expected
to increase slightly by 1.3% in 2016. Despite a
challenging economic and social climate, a weak euro
and low energy prices are expected to keep France on
a modest but steady recovery pace. France remain a
top destination worldwide, drawing long-haul visitors
from emerging economies like Brazil, China and
increasingly, the Gulf region. Furthermore, in addition
to the recurring events such as the Paris Motor Show,
Roland Garros Tennis Open and the Paris Fashion
Week, France will host the Euro football cup in June
2016. These major events are expected to boost
France’s visitor numbers in 2016.
Gross Rental Income
(S$’000)
Agreed
Property Value
at Acquisition
(S$’million)
FY 2015 FY 2014
Citadines Antigone Montpellier
788
879
13.8
Citadines Austerlitz Paris
488
542
9.6
Citadines Castellane Marseille
543
603
10.7
Citadines City Centre Grenoble
1,489
1,662
16.7
Citadines City Centre Lille
1,570
1,753
16.2
Citadines Croisette Cannes
469
524
8.4
Citadines Didot Montparnasse Paris
1,790
2,007
25.7
Citadines Les Halles Paris
5,030
5,616
88.2
Citadines Maine Montparnasse Paris
1,439
1,598
20.6
Citadines Montmartre Paris
3,000
3,349
40.4
Citadines Place d’Italie Paris
4,111
4,590
56.3
Citadines Prado Chanot Marseille
382
426
9.4
Citadines Presqu’île Lyon
1,200
1,339
21.4
Citadines République Paris
1,523
1,691
21.2
Citadines Suites Louvre Paris
2,388
2,667
40.3
Citadines Tour Eiffel Paris
3,293
3,682
59.2
Citadines Trocadéro Paris
3,168
3,536
51.3
