Servicing a need for comfortable accommodation (2)

The company plans to open more than 700 new units in 2013 and is on track to manage a total of 23 property sites in China by 2016.

"The average occupancy rate of our serviced apartments is above 80 percent in China and above 90 percent in Shanghai," said Balen.

"The China market is vital to us," she added.

As China's economy progresses ahead of most other countries, many multinationals have increased their investment in the market. The result is a continuous increase in the number of expatriates that, in turn, exacerbates the demand for premium serviced residences in Shanghai.

According to the latest report from DTZ, a leading international property consulting company, the overall occupancy rate for the expatriate lease market in Shanghai during 2012 was in excess of 90 percent, with highly sought-after estates such as Xintiandi and Green City experiencing close to full occupancy.

"Generally, the target customers for premium serviced apartments consist mainly of senior expatriates and consular staff. They are often accompanied by family members and stay for at least three months," said Choe Peng Sum, chief executive officer of Frasers Hospitality.

"These target customers not only look for residences that are close to the city's culture and trends. They also have high standards for quality and 'international' living," Choe said.

Balen noted that an increasing number of Chinese people also become loyal tenants and tend to stay with them when they travel abroad.

"Some Chinese clients are willing to stay in serviced apartments when they, for example, go shopping in Singapore or travel to Paris," she added Fraser is not only committed to developing in first-tier cities but is also trying to tap the potential in second-tier cities, including Nanjing, Chengdu and Suzhou, while at the same time increasing people's understanding of the value of serviced apartments.