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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, Malaysia’s economy slowed to 4.8%
in 2015, from 6.0% in 2014. The slowdown in the
economy coupled with the decreasing oil prices and
political instability has led to a decrease in demand
for accommodation. Many oil and gas companies
or project companies have reduced their corporate
accommodation budget.
Consequently, the Kuala Lumpur hospitality market
was negatively impacted as seen in the declining
occupancy and ADR in 2015, particularly in Jalan
Ampang. To attract a stable base of long-stay
corporate travellers amidst the challenging operating
conditions, ADR of Somerset Ampang Kuala Lumpur
was reduced to maintain occupancy at 84% in 2015.
Overall, RevPAU declined by 10% from S$101 in
2014 to S$91 in 2015. Nonetheless, the property
outperformed its competitors in 2015.
2016 Outlook
EIU predicted Malaysia’s GDP growth to slow to an
average of 4.3% in 2016. Net exports are expected to be
less of a drag on growth, but domestic demand will be
slow from 2016 to 2020 as compared with the previous
five years. Nevertheless, economic growth will continue
to be supported by sustained increases in household,
government and investment spending.
Looking ahead, an estimated 2,200 hotel rooms from
the luxury segment are expected to enter Kuala Lumpur
over the next three years. While the new supply of
accommodation may trigger a short term decline in
occupancy levels, ADR of the market will likely increase
over time as new luxury hotels enter the industry.
Gross Rental Income
(S$’000)
Agreed
Property Value
at Acquisition
(S$’million)
FY 2015 FY 2014
Somerset Ampang Kuala Lumpur
1
6,798
3,197
67.4
Revenue Per Available Unit (S$)
FY 2015
FY 2014
Somerset Ampang Kuala Lumpur
1
91
101
1
The property was acquired on 18 August 2014.
