Creditors Tender Hong Kong Hotel Seized from China's Shimao Group

A Hong Kong hotel complex seized from a company linked to Chinese property tycoon Hui Wing Mau is attracting significant buyer interest as creditors move to dispose of the distressed asset.

Sole agent Savills is managing a formal tender for the 1,219-room property on Lantau Island, which operates as the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton. The process for the Marriott-operated complex, located near the Tung Chung MTR station and Hong Kong International Airport, is expected to close on August 31.

The hotels were seized after mainland Chinese developer Shimao Group, controlled by Hui’s family, failed to secure a sale. The group had previously cut its asking price by 25% to approximately HKD$4.5 billion (US$574 million) in late 2024. According to Forbes, Hui Wing Mau has a net worth of $1.9 billion.

“This is a genuinely rare offering – dual-branded with Marriott standards, all under one roof,” said Raymond Lee, CEO at Savills Greater China, during a site visit on Tuesday. “During previous rounds of expressions of interest, the property attracted a number of serious, well-capitalized buyers, and we have been in substantive discussions with several of them.” Lee added that the ownership transition will be confirmed soon.

Completed in 2020, the property has a gross floor area of about 56,670 square meters and was developed at an estimated cost exceeding HKD107,600 per square meter. Savills confirmed that no floor price has been set for the tender.

The sale comes amid a broader trend of banks seeking to contain losses on distressed commercial property rather than delay them, driven by tighter capital requirements, stricter regulatory treatment of troubled loans, and increased scrutiny from rating agencies.

Despite the receivership, the hotel complex has maintained strong performance, with operations continuing without interruption. It posted a blended occupancy rate of about 85% in the first quarter of the year and has strong venue bookings. The property includes one of Hong Kong’s largest event venues, featuring a 1,236-square-meter column-free grand ballroom, making it a key destination for weddings and MICE events in the region.

Savills and the receivers intend to hold roadshows in the coming months to “bring the opportunity directly to investors across the globe,” said Godfrey Cheng, deputy senior director of the investment CEO office at Savills Hong Kong.

Cheng noted that prospective buyers are expected to “take a long-term view” on the asset, even as the U.S. Federal Reserve signals a possible interest rate increase later this year. “The type of buyer [for these hotels] is not subject to financing constraints,” he said, explaining that they have cash on hand and are seeking attractive deals in Hong Kong to diversify their portfolios. “I think [investors] would also be global because it’s rare to have an international brand hotel [up for sale] in Hong Kong. Lots of Southeast Asian investors are paying close attention to Hong Kong.”