Hotel Grand Chancellor, Palm Cove, Queensland, Australia, owned by Hotel Grand Central has been sold to a third party for the sum of A$10.9 million, paid in cash.The property was valued by Colliers International based on the income method on December 31, 2020 at A$9.30 million. No updated valuation was carried out on the property since its last valuation. The Group’s policy to revalue its hotels once every 3 years.
The property contributed A$814,000 of net loss to the audited Group’s net profits for the year ended December 31, 2020. 6. The sale transaction allows the Group to realise its investment in this property which had not been performing well and had a challenging outlook.
Upon conclusion of this transaction and after deducting the sales commission, the Group would make a net loss of A$93,645 over its book value as at December 31, 2020 (1%) which would be recorded in the Group’s Income Statement. In addition, the Group would be transferring the amount of A$325,000 from its Asset Revaluation Reserve to the Group’s Retained Earnings.