New owner to rebrand resort

French hotel giant Accor is almost certain to lose the management rights over the four-star Novotel Palm Cove resort, north of Cairns, given a Singaporean owner and hotel operator is about to buy the property for $10 million.

In a further sign of confidence in north Queensland's improving tourism economy, listed Singaporean hotelier Hotel Grand Central has confirmed a report in The Australian last week revealing its plans to acquire the major resort and freehold land at Palm Cove, 25km north of Cairns.

Hotel Grand Central said the deal would help it boost its holdings in the Sunshine State.

The company presently operates the Hotel Grand Chancellor in Brisbane and Surfers Paradise and is expected to rebrand the 140-room Novotel Palm Cove as Hotel Grand Chancellor, Palm Cove, on settlement, Hotel Grand Chancellor chairman and managing director Tan Eng Teong said in a stock exchange announcement. Under the deal negotiated by Wayne Bunz of CBRE Hotels, Grand Chancellor will also acquire 36,46sq m of freehold land and a seven-room conference centre, as well as the low-rise four-star resort.

The vendor is New Zealand-based investor Prakash Pandey's CP Group.

Grand Chancellor has already stumped up a $50,000 deposit and will pay a further $950,000 once the contract becomes unconditional. The remaining $9m will be payable on completion.

Either party can terminate the deal if completion does not take place by December 16.

Mr Tan said the purchase would be funded from existing funds while the effect of the transaction on Hotel Grand Chancellor's earnings per share and net tangible asset per share was not material for the year ending December 31.

Grand Chancellor also operates a hotel in Adelaide.

Source: The Australian, 8 October 2013