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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 German economy grew 1.5%
in 2015 on the back of healthy private consumption
and government spending though partially offset by
weaker fixed investment and slower export growth,
due to faltering demand from emerging markets.
The German hospitality market recorded positive
performance for the first half of 2015 as RevPAU grew
8% compared with the same period in 2014. The
hospitality market continued to be bolstered by the
large number of events and fairs in the main cities.
Berlin has emerged as a highly dynamic destination
in Europe with the MICE sector accounting for a
tremendous part of business travel in Germany. Being
a first-class trade fair and congress location as well as
offering rich cultural heritage in the heart of Europe,
Munich remains Germany‘s best performing hospitality
market, having seen strong growth in occupancy and
average room rates over the past decade. In 2015,
Munich Airport posted yet another all-time high
having handled some 41 million passengers, crossing
the 40-million mark for the first time. 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.
2016 Outlook
According to EIU, Germany’s GDP growth is forecasted
to pick up to reach 1.7% in 2016. OECD projected
the German economy to strengthen in 2016 due to a
robust labour market, low interest rate environment as
well as low oil prices to continue to underpin private
consumption. Weaker demand from emerging markets
will gradually be offset by stronger exports to other
European economies.
In 2016, more hotels will be ready to open in Berlin with
a total of over 1,200 rooms to be added to the market.
The opening of the long-awaited Berlin Brandenburg
Airport is still delayed and not expected to open before
2017. Hamburg will continue to be a popular destination
among corporate travellers given its strategic location as
Germany’s largest universal port and Europe’s second
largest container port, making it the ideal national as
well as international logistic centre. In 2016, Munich will
benefit from fairs like BAUMA (trade fair for Construction
Machinery, Building Material Machines, Mining Machines
and Construction Vehicles), the IFAT (trade fair for Water,
Sewage, Waste and Raw Materials Management),
EASD (European Association for the Study of Diabetes)
Congress, Oktoberfest, ExpoReal (trade fair for real estate
and investment) as well as Electronica (international
gathering for the electronics industry).
Gross Rental Income
(S$’000)
Agreed
Property Value
at Acquisition
(S$’million)
FY 2015 FY 2014
Citadines Arnulfpark Munich
1,994
2,182
34.0
Citadines Kurfürstendamm Berlin
1,558
1,718
21.1
Madison Hamburg
4,476
4,875
59.4
