Hotel Grand Central

The Board of Directors of Hotel Grand Central Limited (the “Company”) together with its subsidiaries
(the “Group”) wish to announce that, the Group is expected to report a loss for the 2nd quarter ended 30 June 2012 (“2Q12”).

(14-07-2012, 12:07 AM)Curiousparty Wrote: Who will use the hotels in a deep recession?

(13-07-2012, 09:52 PM)Boon Wrote: The 9-level 400 guest rooms hotel to be demolished has an old wing (with freehold land title) and a new wing (with leasehold land title). And it is going to be replaced by 2 new hotels.

1) A 10-storey, 264 rooms hotel on the freehold land and
2) A 10-storey, 488 rooms hotel on the leasehold land.

There will be 752 rooms, 352 more when fully completed and operational.

Tourist. Diplomats. Staycationers.

hard to predict whether there will truly be a recession or noteven if there's a recession, sometimes even analyst who predict that singapore having an open economy will be hard hit, may not be correct. y? look at recent times, asian markets get hit while sti shines because its tegarded as safe haven for rich to park there cash n assets. so truly, imho, how it turns out eventually is anyones guess.
pl

The two new hotels will have 752 rooms replacing the 400 rooms in the building that is to be demolished.
The $130m total development cost works out to be $173k per room. The company has not disclosed the book value of the 4,044 sq m site off Orchard Road. For reference, at the end of 2006, $173m was the total book value of the sites occupied by the company's 10 hotels (of varying sizes).
The increase in gross floor area, from 19,761 square meters to 21,882 square meters, seems not much. During last year's AGM, the management indicated that the new hotels will have no commercial space, as hotel guests have a wide choice of eating outlets in the vicinity.
The management holds the view that the tourism industry may slow down in the next two years and has therefore taken the opportunity to redevelop now. The new hotels, opened when the industry recovers, may have a niche in serving budget-conscious travellers wanting to stay near the Orchard Road belt.

(14-07-2012, 09:47 AM)portuser Wrote: The two new hotels will have 752 rooms replacing the 400 rooms in the building that is to be demolished.
The $130m total development cost works out to be $173k per room. The company has not disclosed the book value of the 4,044 sq m site off Orchard Road. For reference, at the end of 2006, $173m was the total book value of the sites occupied by the company's 10 hotels (of varying sizes).
The increase in gross floor area, from 19,761 square meters to 21,882 square meters, seems not much. During last year's AGM, the management indicated that the new hotels will have no commercial space, as hotel guests have a wide choice of eating outlets in the vicinity.
The management holds the view that the tourism industry may slow down in the next two years and has therefore taken the opportunity to redevelop now. The new hotels, opened when the industry recovers, may have a niche in serving budget-conscious travellers wanting to stay near the Orchard Road belt.

The commercial space does not yield as much as hotel rooms. Its better for them to designate one block similar to a hotel 81 and the other a 3-4 star hotel.

Average Revenue per available room is much higher for 3star hotels in Singapore compared to 4-5star.

Look at Global Premium hotels. Making so much more margins than Pan Pacific

The architect's drawings are included in the company's annual report. The 264-room hotel will carry the "Hotel Grand Central" brand, and the larger 488-room the pricier "Hotel Grand Chancellor".

Just curious, HGC has more hotel rooms than St****** by 80% but its hotel revenue is lower than SL , why ?

this is budget hotel, not 5-star hotel, what do you expect? being charged 5-star hotel but in a 3,4-star hotel?

The management of Hotel GC is still very family oriented and inefficient . I worked for them in the 90.

(14-07-2012, 02:33 PM)Stocker Wrote: Just curious, HGC has more hotel rooms than St****** by 80% but its hotel revenue is lower than SL , why ?

One of their Hotels got destroyed in the Christchurch earthquake