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Table of Contents

Introduction....................................................................................................................................2

SWOT analysis of Frasers Hospitality Trust (“FHT”)...............................................................2

Conclusion.......................................................................................................................................5

Reference.........................................................................................................................................5

Introduction

Frasers Hospitality Trust (“FHT”) is an international hotel system and serviced house trust founded with the major policy of capitalizing worldwide on

a long-standing basis, straight or circuitously, in an expanded portfolio of income-producing real estate and real estate-related assets used principally for hospitality drives. According to FHT official website (FHT, 2016), the current hotel system comprises 12 properties including 6 hotels and 6 serviced residences. The six hotels are InterContinental Singapore (Singapore), ParkInternational London (England), Best Western Cromwell London (England), Novotel Rockford Darling Harbour (Australia), ANA Crowne Plaza Kobe (Japan) and The Westin Kuala Lumpur (Malaysia). The six serviced residences are Sydney (Australia), Fraser Place Canary Wharf (England), Fraser Suites Queens Gate (England), Fraser Suites Glasgow (Scotland), and Fraser Suites Edinburgh (Scotland) (FHT, 2016). The company is funded directly by Frasers Centrepoint Limited (FCL), which is a full-fledged global real estate corporation and one of Singapore’s top property enterprises with total asset up to 22 billion US doolar (March 2015, FHT, 2016). This report will give an SWOT an analysis on FHT which specializes on hotel and hospitality sector.

SWOT analysis of Frasers Hospitality Trust (“FHT”)

Theoretically, SWOT analysis is defined as an advantageous practice for understanding an organization in terms of internal factors (Strengths and Weaknesses) and for recognizing the external factors particularly in the marketplace (Opportunities and Threats) which have a critical impact on the organizational performance of that business (Hill and Westbrook, 1997). As a result, business managers can comprehend whether a circumstance has sufficient aspects in its favor and eventually worth being taken into consideration.

Figure: SWOT analysis Applied into the existing situation of FHT, the SWOT analysis will give an

Figure: SWOT analysis

Applied into the existing situation of FHT, the SWOT analysis will give an insightful scrutiny depending on accessible primary and secondary data for the managers to better promote the business performance in and out of the corporation environment. The sector of hotel and hospitality requires the manager the outstanding communication competency as well as striking human resources management (HRM) that are utterly necessary in a progressively competitive business arena.

The SWOT can be represented generally with the following main points.

About internal strengths and weaknesses that the corporation is possessing, it can be said that the widespread brand reputation of FCL has made up the majority of the current success of FHT in the context of more and more hotels and hospitality service entrants setting foot in the game and obviously posed as threatening rivalry forces. FHT’s strong brand profile has facilitated the corporation to boost up its marketing to attract more customers especially the hotel system of FHT stretched over five continents of the globe such as InterContinental, Holiday Inn, Holiday Inn Express, Crowne Plaza ,Hotel Indigo and Staybridge Suites which are all extravagance hotels. In addition,

thanks to the prestige of FCL, FHT has been sponsored with undisputed benefits and gained its own fame by exceptional performance in recent years. The hotels is diversified in multipurpose system that allows them to deliver a variety of offers to a wide range of guests from civilians to businesspersons, families to national leaders, celebrities or other important persons. Furthermore, the hotel system is professionally managed with high competency and great operating practice with Priority programs for sustaining the loyalty of customers. When the customers participate in the program, they are guaranteed to be receive top-notch services such as champagne butlers, private masseurs and chauffeurs who are willing to satisfy the requirements of customers from the basic ones. Members of this program can convert points gathered from preceding check-ins for free lodging or other hotel benefits. From the financial report of FHT (FHT, 2016), the revenue has been growing since 2009 which are attributed to the superb alternations in service management as well as the development of hotel operating performance with the statistics showing that the operating margin of a hotel alone InterContinental Hotel Singapore (35.7%) was also quintuple that of surrounding hotels (with average 5%)(FHT, 2016).

Also

in

the

annual report of FHT, the current ratio was 0.77, which is

lower than 0.86 in 2012 and also lower than its opponent like Hyatt (1.39). This

can be considered a weakness that FHT hotel system has to figure our

resolution in

short term.

As

can be known

that lesser ratio shows that the

liquidity status of the business is more fragile than its opponents, besides the

corporation assets hs

seen

a slight decline

since

2013 and

an upsurge

in

liabilities.

Hence,

inadequate

money

and

liquidity

status

will generate

drawback to FHT while its has the long term plan of staying ahead in the hotel

industry.

About external aspects that may either facilitate the corporation to better perform at ease or negatively affect its operations. Opportunities that are within reach in current situation are the recovery of regional economy after a severe recession in 2008 with an increasing number of visitors coming to

countries where FHT’s hotels are located including Singapore the headquarter, the USA, and Europe. According to the FHT (2016), around 70% of people in which students of exchange programs or overseas ones account for the

majority are travelling for diverse purpose such as education, employment, or leisure purpose ( relaxation, tourism or exploration). It is calculated that the typical disbursement of students is 2,755 US dollars in 2-month trip, and FHT has been ready with over 4,000 hotels across the world. The corporation experts and even outsiders also presume that this is a one in a lifetime opportunity to make more money and gain more prestige from the favorable pool of customers. Additionally, FHT is utilizing one of their opportunities which is various tactical creativities now directing their business to sustainable growth.

However, the external environmental factors are not always beneficial but possible threats when the fluctuations in foreign currency exchanges rate will negatively affect the business of the corporation due to its expenditure increase, which it may destructively influence the company to deal with other rivals. As aforementioned, the competition in the hotel and hospitality is getting aggressive when more hotels which are sponsored by large enterprises with great ambition to dominate the market share that FHT is currently holding. The situation forced FHT to thoroughly upgrade its strategic plan and service management to boost up the hotel profit.

Conclusion

Frasers Hospitality trust is an international corporation, and it will go on growing its business in the hotel industry with effort and confidence. From the SWOT analysis which has pointed out the insight of the business performance of what should be sustain and improved as well as what should be diminished and minimized for the triumph in the future.

Reference

  • 1. [Online] Frasers

Hospitality Trust Official website (2016).

Accessed on June 8th 2016.

  • 2. [Online] Frasers

Hospitality Trust Official website (2016).

Accessed on June 8th 2016.

  • 3. [Online]

SWOT

analysis

examples

(2010).

Available

at:

Accessed on June 8th 2016.

4.

Hill, T. and Westbrook, R., 1997. SWOT analysis: it's time for a

product recall. Long range planning, 30(1), pp.46-52.