The Managers’ main objectives are to deliver stable, long-term growth in distribution and net asset value to FHT’s Stapled Securityholders, while maintaining an appropriate capital structure.

Acquisition growth strategy

The Managers actively pursue asset acquisitions that will provide attractive cash flows and yields in line with their investment mandate to enhance the returns to FHT’s Stapled Securityholders and improve the future income and capital growth prospects of FHT.

The Managers seek opportunities in key cities with sound economic fundamentals, favourable hospitality market conditions, and a good mix of both business and leisure guests. With FHT’s global investment mandate (excluding Thailand), the Managers have maximum flexibility in seeking opportunities within the hotel and serviced residence asset classes in various regions.

FHT’s acquisition strategy is further complemented by the right of first refusal to a pipeline of hospitality assets owned by both the Sponsor and the TCC Group, which provides access to future opportunities to acquire income-producing properties.

Active asset management and enhancement strategy

The Managers continue to identify opportunities and implement strategies to enhance the operational cash flow of the properties. Working closely with the hotel and serviced residence operators, the Managers focus on the areas of revenue optimisation, cost control and operating efficiency while prioritising strategies that have the greatest impact on the overall performance of the properties.

In addition to active asset management of the properties, the Managers proactively identify opportunities for asset enhancement initiatives to successfully reposition the properties, generate higher cash flows and further increase the value of the properties within the portfolio.

Capital and risk management strategy

The Managers endeavour to maintain a strong balance sheet and manage exposure to risks prudently by employing various strategies and measures to optimise the returns to Stapled Securityholders. These measures may involve employing an appropriate mix of debt and equity in financing acquisitions, securing diversified funding sources by accessing both financial institutions and capital markets, and utilising interest rate and foreign exchange hedging strategies, where appropriate, to minimise exposure to market volatility.