Shimao Group Holdings has cut the asking price for a Sheraton-branded hotel near Hong Kong’s airport in Tung Chung by 25%, aiming to sell the property for at least HK$4.5bn ($579m) as reported by Bloomberg via mint.
This divestment is part of the developer’s plan to liquidate offshore assets following its default last year.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The 18-storey hotel Sheraton and Four Points by Sheraton Tung Chung opened in 2020.
With over 1,200 rooms, it is the city’s second-largest hotel complex by room count, according to real estate agent Jones Lang LaSalle.
The Shanghai-based builder and developer proposed a debt restructuring plan in March and further enhanced it in October, which received creditor support. Shimao’s efforts to restructure include selling high-profile assets.
The planned sale of the hotel may help Shimao offer additional credit support for its debt restructuring plan.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCreditors representing more than 80.72% of the in-scope debt principal have backed the restructuring proposal. A court-sanctioned creditor vote is expected early next year to finalise the plan.
Earlier this month, a Hong Kong court dismissed a liquidation case through a court ruling.
Shimao set the initial asking price for the property at HK$6bn in March 2023. The company’s decision to reduce the price reflects challenges faced by the real estate sector in Hong Kong, where property values have plummeted since 2019 revealed a person familiar with the matter.
Shimao founder Hui Wing Mau previously reduced the price for an office floor in Hong Kong’s The Center by nearly 23%.
