WELLINGTON: Hotel Grand Central Ltd saw profits swing from a loss of $404,000 in 3Q2014 to $3.51 million in 3Q2015. Revenue in 3Q2015 slipped 7% y-o-y to $31.27 million in 3Q2015 from $33.78 million a year ago. The lower revenue was due to the sale of Hotel Grand Chancellor in Little India in Singapore and Auckland Airport in 1Q2015. Another reason for the fall was the lower exchange rate conversion from Australian and New Zealand dollars.
The decline in revenue was partially offset by maiden contribution to revenue by the 488-room Hotel Chancellor @ Orchard in Singapore which opened in May this year, with the adjacent 264-unit Hotel Grand Central to open by October. Both are located on the corner of Cavenagh Road and Kramat Lane.
However, the hotel market in Singapore is expected to see a slowdown in room occupancy and average room rates due to increase in hotel room supply, according to the management. Whilst the new hotels will start contributing to the group’s revenue, they will also be incurring one-off start-up costs, it adds.
The Hotel Grand Chancellor Palm Cove in Cairns, North Queensland is seeing softer room rates due to surrounding competition. In Brisbane, the Hotel Grand Central, like the rest of the hotel industry in Queensland is being affected by a slowdown in the mining industry.
