Indebted Chinese developer Shimao Group to sell Hong Kong airport-area Sheraton hotel property for US$828 million
- Sale of the 1,219-room Sheraton-branded property in Tung Chung expected to garner strong interest amid tourism recovery, says sales agent JLL
- Shimao Group, which is in the process of restructuring US$11.8 billion in debt, bought the land in 2014 for US$233 million
Indebted Chinese developer Shimao Group is putting its large hotel property located near Hong Kong’s airport on the market and expects to garner strong interest amid an expected recovery in the city’s tourism sector, according to sales agent JLL.
The asking price for the 18-storey, Sheraton-branded hotel in Tung Chung, which opened in 2020, is HK$6.5 billion (US$828 million), Reuters reported.
With 1,219 rooms and 3,400 square meters of indoor and outdoor meeting space, the hotel is the second-largest in Hong Kong in terms of rooms, just behind Nina Hotel Tsuen Wan West with 1,608 rooms.
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“Hong Kong’s hotel industry is on the cusp of full recovery in 2023, fuelled by the recent reopening of China’s borders and the dropping of the last Covid-19 measures,” said Tan Ling Wei, senior vice president of JLL Hotels & Hospitality Group.
The sales procedure will involve two or three rounds of bidding, with the deadline for expressing interest in mid-May, according to Jonathan Law, vice president at JLL Hotels & Hospitality Group.