4
ANNUAL REPORT 2015
FRASERS HOSPITALITY TRUST
OUR STRATEGY
ACQUISITION GROWTH
The REIT Manager will actively
source for and pursue asset
acquisitions that will provide
attractive cash flows and yields to
satisfy its investment mandate, so
as to enhance returns to stapled
securityholders and improve
potential opportunities for future
income and capital growth.
The REIT Manager will seek
opportunities in key cities with
sound economic fundamentals,
favourable hospitality market
conditions, and a good business
and leisure guest mix. FHT’s global
mandate allows the REIT Manager
maximum flexibility in scanning
various regions for opportunities
in both hotels and serviced
residence asset classes.
In addition, FHT’s acquisition
strategy is complemented by the
ROFR granted by its sponsor, FCL
and its strategic partner, the TCC
Group, which will provide it with
access to future opportunities
to acquire income-producing
properties that are primarily used
for hospitality and/or hospitality-
related purposes.
ACTIVE ASSET MANAGEMENT
AND ENHANCEMENT STRATEGY
The REIT Manager will
continuously identify opportunities
and implement strategies to
improve the operational cash
flow of the properties. Working
closely with the hotel and serviced
residence operators, the REIT
Manager focuses on the areas of
revenue optimisation, cost control
and operating efficiency, prioritising
strategies that have the highest
impact on the overall performance
of the properties.
In addition to active asset
management of the properties,
the REIT Manager actively seeks
opportunities to undertake
asset enhancement initiatives
that successfully reposition the
properties, generate incremental
cash flows and increase the value of
the properties.
CAPITAL AND RISK MANAGEMENT
STRATEGY
The REIT Manager will endeavour
to maintain a strong balance sheet
and manage exposure to risks
prudently by employing various
strategies and measures to optimise
returns to stapled securityholders.
These measures may involve the
following: employing an appropriate
mix of debt and equity in financing
acquisitions; securing diversified
funding sources to access both
financial institutions and capital
markets; and utilising interest rate
and foreign exchange hedging
strategies, where appropriate, in
order to minimise exposure to
market volatility.
