Shimao Group (0813), facing challenges from the domestic property debt crisis, is reportedly slashing the asking price by 25% for the sale of the Sheraton Hotel in Tung Chung.
According to Bloomberg, the initial price set for the project was HK$60 billion in March last year, but the latest asking price has dropped to HK$45 billion.
The hotel is notable for being the first "dual-brand" hotel established by Marriott in Hong Kong, comprising the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton. Opened in 2020, the hotel features 18 floors with a total of 1,219 rooms, making it the second largest after the Royal Plaza Hotel in Tsuen Wan. As of now, Shimao Group has not publicly commented on the price reduction for the hotel sale.
Founded in Shanghai, Shimao Group acquired the land for the hotel in collaboration with Mingfa Group (0846) in 2014 for HK$1.83 billion, which translates to a floor price of approximately HK$2,998 per square foot. Earlier this month, the Hong Kong High Court dismissed a winding-up petition from creditors against Shimao. The group indicated that approximately 79.06% of the total debt principal within its purview has agreed to a creditor support agreement, demonstrating backing for the proposed restructuring.
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