Singapore-based Hotel Grand Central (HGC) has divested its property in Palm Cove locality of Queensland, Australia.
In a stock exchange filing, the company said that Hotel Grand Chancellor in Australia, which was owned by a wholly owned unit, was sold for $7.77m (A$10.9m) in cash to a third party.
“The sale consideration was arrived at on a willing buyer willing seller basis and after taking into consideration factors such as the current and future hotel market condition in the Palm Cove locality,” the statement said.
The divestment decision was taken after assessing factors such as the current and future hotel market condition in the Palm Cove locality.
Additionally, HGC said that the Palm Cove property was not performing well and had a challenging outlook. Last year, Hotel Grand Chancellor contributed A$814,000 of net loss to the audited net profits of the group.
The net sale proceeds from the transaction will be placed into interest bearing bank term deposits to increase cash pool.
The transaction will have no material impact on the group’s earnings.
According to the company website, Hotel Grand Chancellor Palm Cove features rooms in different configurations. The facilities include swimming pools, massage salon, games room, conference and events centre and complimentary WI-FI service among others.
Hotel Grand Central owns and operates hotels and properties in Singapore, Malaysia, Australia and New Zealand.
The company was listed on the Singapore Stock Exchange in 1978.