FRASERS Hospitality only opened for business in Japan last month - seven years after the Singapore-based serviced residence owner and management company started spreading its wings overseas.
During those years, Frasers - a wholly owned subsidiary of food and beverage company Fraser & Neave, which has branched aggressively into property development - has acquired more than 5,000 apartments in Asia, India, Europe, Latin America and Russia.But the late start in Japan was a question of timing, according to Frasers chief executive Choe Peng Sum.
'We believe the timing is still ideal for us to enter Japan,' he said. 'Even international hotels have just recently surfaced in Tokyo - Peninsula, Mandarin Oriental, Four Seasons, Ritz Carlton and Conrad. In fact, the trend has been that the newer five-star international hotels are now starting to enjoy high occupancy, as opposed to existing hotels.'
Occupancy at Frasers' Fraser Place Shinjuku in Tokyo, which is in its first month of operation, is 'greater than expected', according to Mr Choe.
'Although we have been to Japan since 2004, getting the right project with the right project size and the right location, with the right partners and conditions, takes time,' he said. 'To have a close to 200 apartments in Shinjuku, giving the business a good economy of scale, was indeed a wait worth waiting for.'
Some 175 units in the East Tower of Fraser Place Shinjuku have been open to guests since March. Another 209 units in the West Tower are due to be ready in June.
'We are close to signing a property in Osaka, looking at Yokohama, and also a second property in Tokyo, which together will make Frasers Hospitality the largest international serviced residences player in Japan,' Mr Choe said.
Explaining Frasers' foray there, he said: 'Japan is an attractive market. There is growing demand for premium serviced residences as a result of investments by foreign and Japanese companies. Both are making frequent inter-city travel. Demand for serviced residences exceeds supply.'
But land, despite the decline in prices in recent years, remains very expensive, Mr Choe pointed out.
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