Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Chinese property developer Shimao Group has confirmed that lenders have taken control of its Sheraton and Four Points by Sheraton hotels near Hong Kong International Airport and have initiated a sale process for the assets. The move comes after the company completed a USD 11.5 billion offshore debt restructuring last year. Receivers appointed by lenders have engaged Savills to conduct a tender sale, which is expected to conclude by the end of August. Sources said the hotels are being marketed for at least HKD 3 billion against an outstanding loan of nearly HKD 5 billion tied to the properties.
Chinese property developer Shimao Group has said that its Sheraton and Four Points by Sheraton hotels located near Hong Kong International Airport have been seized by lenders and placed on the market for sale, marking another step in the company's efforts to address its debt obligations.
The company disclosed that lenders appointed Jun Ge and Patrick Bance of AlixPartners as receivers and managers for the hotel assets. The appointments became effective earlier this month.
In a regulatory filing, Shimao said its management has been cooperating fully with the receivers and believes that a professionally managed sale process would serve the interests of all stakeholders involved.
According to a joint statement issued by AlixPartners and Savills, the receivers have appointed Savills as the sole agent to conduct a tender sale of the two hotel properties. The hotels continue to operate normally while the sale process is underway.
Sources familiar with the matter said the tender process is expected to conclude by the end of August and is targeting a sale value of at least HKD 3 billion. The sources added that an outstanding loan of nearly HKD 5 billion is linked to the assets, with the financing having been provided by a group of lenders led by HSBC.
The development comes after Shimao completed a USD 11.5 billion offshore debt restructuring last year, one of several restructuring efforts undertaken by Chinese property developers amid the prolonged downturn in the country's real estate sector. The sector has faced liquidity pressures, falling home sales and tighter financing conditions over the past few years, forcing many developers to dispose of assets and negotiate with creditors.
Shimao had previously attempted to sell the hotel assets on multiple occasions. In 2023, the company sought buyers at a valuation of at least HKD 6.5 billion. It made another attempt in 2025 at an asking price of HKD 4.5 billion. However, neither effort resulted in a transaction, reflecting the challenging investment environment for large commercial property assets in Hong Kong.
The two airport-area hotels are considered strategically located hospitality assets due to their proximity to Hong Kong International Airport and key transport links. However, market uncertainty, elevated financing costs and weaker investor appetite for large-scale property acquisitions have weighed on transaction activity across the sector.
Source Reuters
Advertisement
Facebook
Whatsapp
