A Quick Look At The Different Revenue Sources Of Hotel Grand Central Limited
Hotel Grand Central Limited (SGX: H18) owns, operates and manages hotels. It operates in five regions, namely Singapore, Malaysia, Australia, New Zealand and China.
The company recently caught my attention as it was trading close to its 52-week low.
To know more about the company, I decided to do some research on it. In this article, we will look at the different revenue sources for the company, and their breakdown.
Source: Hotel Grand Central 2016 Annual Report
Above is a quick view of the breakdown of Hotel Grand Central’s revenue.
Australia – According to the company’s 2016 annual report, it owns eight hotels and an investment property in Australia. These hotels are run under the brand Hotel Grand Chancellor whilst the investment property is a 21-storey office building.
New Zealand – This is the second major profit contributor to the group. In this segment, the company owns two hotels and three investment properties in the country.
Similar to Australia, the hotels in New Zealand operates under Hotel Grand Chancellor brand.
Singapore – In Singapore, the company owns and operates two hotels – Hotel Grand Central and Hotel Chancellor@Orchard.
China and Malaysia – Hotel Grand Central owns and operates one hotel each in China and Malaysia. The former is in Sihui, China (Hotel Grand Central) whilst the latter is in Kedah, Malaysia (Hotel Grand Crystal).
The above is a quick overview of Hotel Grand Central’s different revenue sources.
Though it might seem that the income sources are diversified across five regions, the bulk (about 80%) is from Australia and New Zealand.
As such, investors interested in the company should be comfortable with owning a company with bulk of its income driven from that region.