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.
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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.
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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%.
