- GPS Alliance will buy a 35 per cent interest in BMG – a Singapore boutique hotel development for over $965,000
- BMG is currently owned by Bryan Ong who has been searching for investors with the right experience
- GPS considers this a promising and timely investment as the Singapore tourism sector is expected to grow
- GPS Alliance’s shares are up a healthy 10 per cent, with shares trading at 5.5 cents apiece
GPS Alliance will purchase a 35 per cent equity interest in BMG Hotel 1887, a boutique hotel development bought by hotelier Bryan Ong, for over $965,000.
The initial purchase price of $965,000 is to be funded by issuing GPS shares at $0.05 cents per share to the value of $804,189, and a cash component of $160,837.
In early 2018, Bryan Ong began his spree of purchasing suitable buildings in Singapore to revamp them into boutique hotels under the “BMG” business.
In January of last year Bryan bought Hotel 1929, a heritage boutique hotel located in Chinatown, Singapore. In August, he bought the BMG hotel for almost $1 million.
Since then, he has been looking for potential investors with both real estate development and fitting-out experience, which is conveniently in line with GPS’ core business operations.
GPS plans to help expand the model of Hotel 1887 to at least four more hotels.
Hotel 1887 was converted from the famous old Chinese Opera House with 80 rooms located in the heart of Singapore’s Chinatown – a vibrant tourist centre in Singapore.
So far, this location has proven to be a great success, with an occupancy rate of nearly 90 per cent in the first nine months of operation.
In obtaining the 35 per cent stake in BMG, GPS would also be guaranteed the award of all fitting-out contracts and maintenance necessary for the expansion, which will increase its revenue.
The Board believes this is a promising investment as the tourism sector in Singapore is growing.
The Singapore Tourism Board anticipates that international visitor arrival to Singapore will rise by up to four per cent to 18.1 million this year.
GPS Alliance’s shares are up a healthy 10 per cent, with shares trading at 5.5 cents in a $5.147 million market cap.