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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, Spain’s GDP grew 3.2% in 2015,
as compared to 1.4% in 2014 as the country remains
on a growth path following years of recession. Spain’s
economy outperformed many of its European peers
due to its strong domestic dynamics, underpinned by
the lowest unemployment rate in over four years in 4Q
2015.
Tourism continues to remain one of the major driving
forces of the Spanish economy. In 2015, Spain
received a record high of 68.1 million international
visitors, an increase of 4.9% as compared to the
same period in 2014. The hotel supply in Barcelona is
expected to slowdown due to a one-year moratorium
on development and short-term rentals from July
2015. Citadines Ramblas Barcelona performed
above the minimum guaranteed income in 2015.
Overall RevPAU remained stable at S$141 in 2015,
unchanged from 2014.
2016 Outlook
EIU forecasted a GDP growth of 2.6% for 2016. Despite
the cloudy political outlook due to the change in governing
party following the general election in December 2015,
Spain’s growth prospects are stable. An improving
labour market and greater consumer confidence should
fuel robust domestic demand this year.
The hospitality sector is expected to continue to grow
on the back of stronger accommodation demand
from particularly the MICE sector. The construction
of a large cruise terminal at the port will further boost
accommodation demand from the cruise business.
Upcoming MICE events include Mobile World Congress
which will be held in Barcelona annually until 2023,
IBTM Fair (formerly known as Exhibition for the Incentive
Business Travel and Meetings) which will be held annually
in Barcelona until 2019, as well as the CPHI Worldwide
Congress (chemical-pharmaceutical congress) in
2016 where over 15,000 participants are expected.
Furthermore, a new programme, Barcelona Health,
has been launched to further develop medical tourism
in the city. We expect to enjoy stronger operational
performance in 2016.
Gross Rental Income
(S$’000)
Agreed
Property Value
at Acquisition
(S$’million)
FY 2015 FY 2014
Citadines Ramblas Barcelona
6,917
6,900
56.7
Revenue Per Available Unit (S$)
FY 2015
FY 2014
Citadines Ramblas Barcelona
141
141