HONG KONG: Chinese property developer Shimao Group is seeking to sell its hotel in Hong Kong close to the international airport for HK $6.5 billion $828 million, according to sales agent JLL on Monday.
The Chinese developers that defaulted last year are Shanghai-based Shimao, which is in the process of resolving $11.8 billion of offshore debt.
The Sheraton Four Points hotel in Hong Kong is being sold by Sheraton Tung Chung Hotel in late 2020. It has over 1,200 keys, which is the second largest hotel in the financial hub by number of rooms.
Oscar Chan, head of capital markets in Hong Kong, said the hotel's valuation is slightly higher than the asking price. In 2014, Shimao bought the land for HK $1.83 billion.
A Shimao spokesman was not immediately available for comment.
He said the hotel's occupancy rate rebounded quickly after the city lifted travel restrictions late last year, and with interest rates peaking, he thought Shimao would be able to fetch a much higher price than it would have last year when it defaulted on its debt.
The first round of submissions is expected to be accepted after the Easter holiday in early April, with Chan saying the hotel will be sold via an Expression of Interest EOI process.
He said that many local investors, major property developers and foreign funds have expressed interest.