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3 Things To Know About Hotel Grand Central Limited

Hotel Grand Central Limited (SGX: H18) owns, operates and manages hotels. It operates in five regions – Singapore, Malaysia, Australia, New Zealand and China.

Here are three things about the company that may be useful to investors:

1) Shareholders cum management

Source: Hotel Grand Central 2016 Annual Report

Above is a quick view of the major shareholders and the board of directors of the company. What we can see here is that the major shareholder, Mr Tan Eng Teong is also the Executive Chairman and Managing Director of the company. Moreover, the board of directors are made up of a number of members from the Tan family. In other words, the management has significant exposure to the business through their majority shareholdings.

As such, investors or potential investors should take this factor into consideration when evaluating this company. Such high insider ownership may mean that minority shareholders will have little voice in the long term direction of the company and should be comfortable “trusting” the management to do the right thing.

2) Strong balance sheet

 The second thing here is rather positive for the company, at least in my personal opinion.

A look at the company’s balance sheet shows that Hotel Grand Central has a robust balance sheet with $344 million in cash and “only” $131 million in borrowings. Furthermore, it has about $207 million in investment properties.

3) Dividend payment

Another thing to note about Hotel Grand Central is its rather consistent dividend payment over the years.

In each of the last five years, it has paid out ordinary dividend per share of 5 cents. In addition, it occasionally pays out a special dividend, the latest being 5 cents per share in 2014.

At current price of $1.34, it is trading at a dividend yield of 3.7%.

 

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned.