Hotel Grand Central

Hotel Grand Central: Announcement in 2012 that it would build two new hotels at the site of its old hotel in the Orchard Road area had not caused a stir as the company is off analysts' radar screens. The land (freehold plus leasehold) next to Orchard Road has been revalued to $216m. Together with $130m development cost, the cost of each of the 752 rooms of the two new hotels will be $460k. Hotel Grand Central has another 328-room hotel in Singapore, Grand Chancellor, which is sited in Little India. The valuer has assessed each room to be worth $ 613k, which is close to the $622k transacted for Ibis Novena at Balestier Road recently. If the value of each 3-star hotel room in the Orchard Road belt is a conservative $700k, the two new hotels will, on completion in 2014, give rise to a surplus of $180m, raising Hotel Grand Central's NAV from $1.53 to $1.84 per share. In comparison, the stock traded recently at 97c.