China developer Shimao’s Hong Kong hotels seized and put on sale by lenders

[HONG KONG] Chinese property developer Shimao Group said on Wednesday (Jun 24) that its Sheraton and Four Points by Sheraton hotels located near the international airport in Hong Kong have been seized by lenders and put up for sale.

Shimao, which completed its US$11.5 billion offshore debt restructuring last year, said Jun Ge and Patrick Bance of AlixPartners have been appointed by lenders as receivers and managers over the hotel assets effective from June 1.

“The management has remained fully cooperative with the receivers and believes that a professionally managed sales process is in the best interests of all stakeholders,” it said in a filing.

The receivers appointed Savills as sole agent for a tender sale of the assets, which are still fully operating, according to a joint statement from AlixPartners and Savills on Tuesday.

The tender sale, expected to close by end-August, aims to fetch at least HK$3 billion (S$496.3 million), said two sources with knowledge of the matter, who declined to be named because the discussions were private.

There is an outstanding loan of close to HK$5 billion linked to the assets that was extended by lenders led by HSBC, the two sources said.

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Shimao tried to sell the hotel assets in 2023 for at least HK$6.5 billion and later in 2025 for HK$4.5 billion but there were no takers. BLOOMBERG