Hotel Grand Central has sold the Hotel Grand Chancellor, Palm Cove, located in Queensland, Australia, to a third party for A$10.9 million in cash, the Singapore-listed company said in a filing to SGX Thursday.
“The sale transaction allows the group to realise its investment in this property which had not been performing well and had a challenging outlook,” Hotel Grand Central said.
The property was valued at A$9.3 million by Colliers International at end-December, and no updated valuation was carried out, Hotel Grand Central said, noting it typically revalues its hotels every three years.
Hotel Grand Chancellor had contributed a net loss of A$814,000 to 2020 results, the filing said. The group will post a net loss of A$93,645 over its book value at end-December, which will be recorded on the income statement, the filing said.
The net sale proceeds will be placed into bank term deposits pending future investment opportunities, the group said.
Hotel Grand Central said it is currently working with an architect to potentially develop a Christchurch land plot purchased in 2019 into a mixed-use development including a hotel, carpark and retail/office space.