Hotel Grand Central

[cyclone]

464,776,736 - 464,015,371 = 761,365, quite fast for such illiquid counter.

From 20 March 2019 to 28 May 2019, Mr Tan Eng Teong's deemed interest has increased from 464,015,371 shares to 464,776,736 shares.

[cyclone]

465,562,323 - 464,776,736 = 785,587 shares in approximately 4 months

On 09 October 2019, Mr Tan Eng Teong's deemed interest has increased to 465,562,323 shares (64.08%).

[coolken163]

465,562,323 - 464,776,736 = 785,587 shares in approximately 4 months

On 09 October 2019, Mr Tan Eng Teong's deemed interest has increased to 465,562,323 shares (64.08%).

If you add up the interest from the cohort, it's already more than 85%.. However, the major shareholders of the family like to save every cent, counting beans... before GO hopefully

[cyclone]

Hotel Grand Central Limited released financial statements for the year ended 31 December 2019 : https://links.sgx.com/FileOpen/HGCFY2019...eID=598539
It declared a dividend of 4 cents per share.

[¯|_(ツ)_/¯]

HGC
bringing a new 12-storey hotel to Auckland Central, offering 191 guestrooms and suites for business and leisure travelers.
The hotel will begin construction early 2021, with completion due mid-2023.  The project is currently under tender and will be financed partly by internal funds and bank borrowings.
https://links.sgx.com/FileOpen/HGC%20Auc...eID=647078

Directly across NZICC. 
Enjoy NZICC video here:

Stay home and stay healthy, everyone.

[CY09]

We are reviewing the placement of Stam ford Land Thread. Do wait for a while

[cyclone]

Good morning kbl san dan money san.

I am sorry I had to delete your posts. I really don't want it to be discussed in this forum anymore.
Have a nice day and stay healthy.

[weijian]

With the main chunk of HGC's assets and earnings in Australia, coupled with NZ's intended opening in 2H2022, it bodes well for HGC's operations and asset valuations to come.

Australia nears living with Covid like flu: PM Morrison

[SYDNEY] Australia's Prime Minister Scott Morrison said the nation's political leaders want to move to a new phase of living with Covid-19 as though it were the flu, but would consult health experts.

A day after meeting with the national cabinet of state and federal leaders, Morrison told reporters on Saturday morning (Mar 12) they had discussed moving to "Phase D" of the national pandemic response plan.

"Our airports are open again, international arrivals can come, there are waivers now on quarantine for people returning, so we are pretty much in Phase D," he said.

https://www.businesstimes.com.sg/governm...m-morrison

[weijian]

Well, if "hotel operation" is a cash intensive business, just ask Marriott or Hilton. Maybe not, since these are the big boys. But maybe HGC can ask local player Ascott?

Hotel operations and ownership is a cash intensive business. To be fair, the Mgt is pretty aligned to OPMIs and the latter have been rewarded with special dividends from past asset sales. During those asset sales, Mgt did not have their salaries running to the roof (as many others did) but they benefitted from the special dividends.

So if OPMIs tag along, they have to acknowledge ownership is part of HGC's business model and accept that low ROE is the feature.

MINUTES OF THE 56TH ANNUAL GENERAL MEETING

Question 4
From the Annual Report, I note that the Group is over capitalized in terms of its size and operations. There is no gearing, and the annual report shows that there are S$302 million of cash and short-term deposits sitting there. Given the current circumstance, the share price is also trading significantly below its book value and net asset value. Is there any way for the Board to consider improving the return on equity for shareholders? On the IR part, it would be good to consider listing the properties and the percentage of ownership in these properties. Maybe with more transparency, the Company will get more media coverage. Also it would be good to have some press interviews to raise the profile of the Company.

Answer 4
Thank you for your questions. Hotel operation is a very cash intensive business. Given the current inflation and increasing cost on manpower, the Group have tried its best keep the lid on escalating cost. All listed properties in the annual report are owned 100% by the Company. The Board reviews cash management as part of its strategy, from time to time. As for the return on equity, and the IR part, the Board will consider your suggestions.

https://links.sgx.com/FileOpen/HGCL-AGM-...eID=802976

[specuvestor]

Hotel business is like our personal property rental business on a larger scale. The focus is not on the cashflow income but asset appreciation over time and a capital payback model. And properties have good LTV ratio / leverage at good interest cost due to collateralisation which boost up ROE, just like how we do our math when we buy an investment property

Generally we are trying to get a small positive Net Rental Income after all the expenses including interest cost and renovations. We outsource the property management to a 3rd party if we don't want to be bothered with the hassle but the net income after paying 3rd party which also manage the price and utilisation should still be positive else you will look for another 3rd party, just like hotel manager.

But if the asset is not freehold say it's 99 /50 years then the price of rental has to be higher (whether the demand will accept it is another business consideration at the onset) cause you are not going to reap long term appreciation. And like us over time the loan quantum goes down as we pay down the mortgage so the ROE decreases over time, but the payback is that you now own a property unencumbered.

That's why hotel stocks generally don't have good dividend and becomes deep value over time unless you pump into a REIT (or sell the asset) which the REIT manager will consistently keep the leverage optimal as that is their performance indicator.

So is asset light good or bad for hotels (management)? It depends on your timeline and objective