Key facts
- Two Shimao hotels in Hong Kong sold for HK$2.7 billion (US$344 million).
- The sale leaves an estimated HK$1.8 billion (US$230 million) shortfall against secured loans.
- The buyer is Oceanfront Hong Kong Ltd, linked to Malaysia's ParkCity Group.
- The hotels, Sheraton Hong Kong Tung Chung and Four Points by Sheraton, have a combined 1,219 rooms.
- The sale price is 40% below the HK$4.5 billion outstanding loan balance.
Shimao Group has agreed to sell two of its Hong Kong hotels, the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton Hong Kong Tung Chung, for HK$2.7 billion (US$344 million). The sale, managed by court-appointed receivers from AlixPartners on behalf of lenders led by HSBC, is expected to be completed by the end of 2026. The agreed price represents a significant discount, falling 40% below the HK$4.5 billion outstanding loan balance and leaving an estimated HK$1.8 billion (US$230 million) shortfall. The buyer is Oceanfront Hong Kong Ltd, an entity with investors linked to Malaysia's ParkCity Group. Shimao stated the disposal is a necessary step to reduce its overall indebtedness and strengthen its financial position as part of its ongoing restructuring efforts. The net proceeds will be applied towards repaying part of the syndicated loans, with no cash expected to reach offshore bondholders.