SINGAPORE-listed Hotel Grand Central has signed conditional agreements to buy an Australian hotel and its business for A$47 million (S$55.1 million).
The price for the Courtyard by Marriott Surfers Paradise, Queensland, works out to about A$116,000 per room. The freehold four-star hotel, which has 405 rooms, is located at the corner of Surfers Paradise Boulevard and Hanlan Street, Surfers Paradise. It forms part of Centro Surfers Paradise - the largest shopping centre in the district.
'A comprehensive review of the hotel will be undertaken with a view to re-branding the property as Hotel Grand Chancellor, Surfers Paradise, upon settlement,' Hotel Grand Central said yesterday in a statutory filing with Singapore Exchange.
The 31-storey hotel, which has a restaurant and two bars, five conference and meeting rooms, a gymnasium and pool, is being sold by Marriott Vacation Club, BT understands.
Jones Lang LaSalle Hotels brokered the transaction.
Hotel Grand Central said the purchase is subject to it being satisfied that the property is suitable for its requirements, following due diligence.
The acquisition, when completed, will expand the group's portfolio of Australian hotels to eight. It already has properties in Brisbane, Adelaide, Melbourne and Tasmania.
Hotel Grand Central also owns four hotels in New Zealand and two in Singapore, at Kramat Lane in the Orchard Road area and Belilios Road in Little India.
It said that had the acquisition of Courtyard by Marriott Surfers Paradise taken place at the start of the financial year ended Dec 31, 2009, its earnings per share for the year would have been 7.64 cents, up from 7.47 cents pre-acquisition.
Source: Business Times, 7 Jul 2010