Hotel Grand Central posts lower FY16 profit on absence of FY15 gain

HOTEL Grand Central on Wednesday posted a 35 per cent year-on-year fall in full-year net profit for the 12 months ended December 2016, on the back of a higher base in FY15.

In 2015, the group recorded a gain of S$72.4 million from the sale of Hotel Grand Chancellor.

The higher base more than offset the group's stronger operation profits, the S$28.4 million gain on the sale of Hotel Grand Chancellor Surfers Paradise, as well as foreign exchange gain in 2016.

Revenue was 11 per cent higher at S$151.4 million, lifted by its hotel operations and management segment.

Earnings per share was down to 8.41 cents in FY16 from 13.35 cents a year ago.

As at end Dec 2016, net asset value per share was S$1.97, slightly up from S$1.93 a year ago.

A final dividend of five Singapore cents a share and a special dividend of one cent a share have been declared, more than the five cents a share dividend in FY15.

In its outlook, the group said the hotel markets where it primarily operates in are expected to be affected by the continuing uncertainty in the global economy.

"The trading performance in the Australia and New Zealand hotels are expected to be resilient in the coming year. The Singapore hotels are expected to operate in a competitive market in 2017 due to a further increase in hotel room supply. The hotel markets in Malaysia and Sihui, China are expected to remain weak in 2017," it added.