Shimao's Hong Kong hotels to be sold for $344 million

Key facts

• The sale price for the two hotels is HK$2.7 billion ($344 million).
• Oceanfront Hong Kong Limited is the buyer of the hotel complex.
• The hotels are the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton.

Receivers for Shimao Group's Sheraton Hong Kong Tung Chung Hotel and Four Points by Sheraton have agreed to sell the dual-branded complex for HK$2.7 billion ($344 million). The sale was announced by the distressed mainland Chinese developer on Thursday. Oceanfront Hong Kong Limited is the buyer. Lenders had appointed Jun Ge and Patrick Bance of AlixPartners as receivers earlier this month due to Shimao's debt obligations. Savills has been appointed as the sole agent to conduct a tender sale of the properties, which continue to operate normally. The sale comes amid a prolonged downturn in China's real estate sector, forcing developers to dispose of assets.