Key facts
- Creditors are seeking to sell the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton, Hong Kong.
- The dual-branded hotel complex has a total of 1,219 rooms.
- The property was seized after its developer, Shimao Group, failed to find a buyer.
- Savills is managing a formal tender process for the hotel complex, with a deadline of August 31.
- The asking price was reduced to approximately HK$4.5 billion (US$574 million) from at least HK$6 billion.
Creditors are intensifying efforts to sell two Hong Kong hotels, the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton, a combined 1,219-room complex on Lantau Island. The property, which is Hong Kong's third-largest hotel by room count, was seized after its owner, mainland Chinese developer Shimao Group, was unable to find a buyer, even after significantly reducing the asking price.
Savills, the sole agent handling the sale, has launched a formal tender process with a closing date of August 31. Raymond Lee, CEO of Savills Greater China, expressed optimism about securing a buyer, citing substantial interest from well-capitalized parties during previous expressions of interest rounds. He noted that the receivership appointment of AlixPartners provides a clear path forward for the transaction.
The dual-branded property, completed in 2020 with a gross floor area of approximately 610,000 square feet, was initially listed for at least HK$6 billion but was later reduced to about HK$4.5 billion (US$574 million). Savills has not set a floor price for the tender.