New World weighing sale of stake in US$2 billion HK hotel portfolio: sources
The potential buyers include Aravest, a Sumitomo Mitsui Finance & Leasing-backed real-estate manager
Add BT as a preferred source
[HONG KONG] New World Development, the cash-strapped property developer, is in talks to sell its 50 per cent stake in a portfolio of three Hong Kong hotels valued at a total of US$2 billion, sources said.
The portfolio includes the Grand Hyatt, the Renaissance Harbour View Hotel and the Hyatt Regency in Kowloon, the sources added, asking not to be identified because the deliberations are confidential.
Abu Dhabi Investment Authority owns the other half of the portfolio.
The potential buyers include Singapore-based Aravest, a Sumitomo Mitsui Finance & Leasing-backed real-estate manager that oversees about US$9.3 billion in assets.
New World is expected to pocket about US$300 million in cash after netting off debt, one of the sources said.
Negotiations are ongoing and could still break down, the sources added.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
New World has long been seeking a broader solution to its debt challenges.
Talks with outside investors, including Blackstone, on taking a stake in the company itself have stalled amid concerns over ceding control – and its contingent liabilities owed to the government, tied to a mall near the city’s airport.
The hotel deal would provide only relatively modest proceeds against New World’s roughly HK$122.7 billion (S$20 billion) net debt as at the end of 2025.
A spokesperson at New World did not respond to queries. Representatives at Aravest and Sumitomo Mitsui Finance declined to comment.
Aravest was spun out in 2024 after ESR Group, which had acquired ARA Asset Managements, sold its private funds business to a consortium led by Sumitomo Mitsui Finance & Leasing.
The mid-sized, Asia-focused manager led the acquisition of the former Hotel Miramar in Singapore in 2025 through a fund structure, and its broader portfolio spans hospitality, office and retail. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
MAS convenes bank CEOs over AI cyberthreats; boards told to own risks, not leave to IT teams
Is it time to scrap COE categories for cars?
