Defaulted mainland Chinese developer Shimao Group Holdings has slashed the asking price for a Sheraton-branded hotel property near Hong Kong’s airport by a quarter, according to a person familiar with the matter.
Shimao, once one of China’s biggest developers, is looking to sell the 18-storey property in Tung Chung for at least HK$4.5 billion (US$579 million), the source said, asking not to be identified discussing a private matter. Known for developing five-star hotels as landmark projects, Shimao opened the hotel in 2020.
The asset, which comprises the Sheraton and Four Points by Sheraton Tung Chung, was first put on the market in March 2023 with an asking price of at least HK$6 billion, according to two sources. The property, with more than 1,200 rooms, is the second-largest hotel complex in the city by room inventory, according to property consultancy Jones Lang LaSalle.
Shimao did not offer a comment when contacted by Bloomberg News.
The move is the latest effort by Shimao to cash in on its offshore assets as it works on its restructuring, after defaulting in 2022. High interest rates and a weakening economy in China have spurred fire sales on some Hong Kong properties. At least HK$2.1 trillion has been erased from real estate values in the city since 2019, according to an analysis by Bloomberg Intelligence in June.