we're hosting the commonwealth games for gods sake, page-16

re: profit doubles here is report, no mention of t/o offer however;

"The luxury hotel investment group, Grand Hotel Group Limited (GHG), today announced net profit from continuing operations had jumped 148.1% from the previous corresponding period to $45.2 million. GHG said that the firm had continued to build on the momentum achieved over the last two financial years with improvements in revenue, profits and distributions to security holders.


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The firm said that profit attributable to security holders had also increased 121.3% to $50.9 million.

GHG said that the group would continue to invest and improve the returns from the existing properties, with the help of a new management team.

The firm said that it was expected that the firm would deliver above average earnings growth and use this as the platform for maximising value for security holders.

The group said that revenue from continuing operations had climbed 16.8% to $179.6 million, while EPS had also jumped 103.8% on the previous corresponding period to 21.2c.

The investment firm said that the increase in revenue was largely achieved through hotel revenue growth of $24.4 million of which the Hyatt portfolio contributed $17.2 million.

The firm said that this was achieved through the successful reopening of the Grand Hyatt Melbourne convention facilities, additional business derived from the Commonwealth Games and higher room rate yields across all properties.

The remaining $7.2 million of hotel revenue growth was derived by the existing Chifley and Country Comfort properties.

The firm said that financing costs had decreased by $4.3 million or 20.7%, as a result there was an interest saving derived from the conversion of Converting Preference Securities (CPS) into ordinary securities and reduced borrowing margins.

GHG noted that the increase in net tangible assets from $1.06 to $1.33 had been achieved through the strong revaluation uplift of the Hyatt Regency Adelaide, together with further debt reduction and the CPS buyback.

In accordance with GHG’s current policy to pay distributions from profit, a further 2c final dividend will be available for distribution on 29 August, bringing the total annual dividend to 4.3c.

The firm said that the future distribution policy was being reviewed in light of GHG’s simplified capital structure and a favourable industry outlook.

At 1140 AEST shares in GHG had climbed 4c to $0.90.