Chinese developer Shimao (0813) has put the dual-branded Sheraton hotel in Tung Chung on the market with an asking price of at least HK$6.5 billion, according to JLL.
The property includes the Sheraton Hong Kong and Four Points by Sheraton and offers a total of 1,219 rooms.
Opened at the end of 2020, it is Marriott's first dual-branded hotel in Hong Kong and the second largest in the city in terms of room numbers.
JLL said the tender will have two to three rounds with the first round closing in mid-May. The real estate agent expects bids lower than HK$6.5 billion will be rejected by the owner.
The hotel also offers 36,598 square feet of space for indoor and outdoor events, including one of the largest banquet halls in Hong Kong for business meetings, exhibitions and wedding receptions.
It will be sold together with T Bay, the newest shopping mall in Tung Chung, offering restaurants, bars and shops.
The property is close to Hong Kong International Airport, AsiaWorld-Expo, the Hong Kong-Zhuhai-Macao Bridge, Shenzhen Port and many popular tourist attractions.
Shimao teamed up with Mingfa (International) (0846) and won the site in 2014 for HK$1.83 billion, or HK$2,998 per sq ft, beating five local consortia.
While tourists are gradually returning to Hong Kong following the reopening of the border in January, the latest sale comes amid Shimao's disposal of several assets as its restructures its offshore debt.
JLL expects the value of hotel deals in the city will increase by 24 percent this year while pointing out that total transactions have averaged US$1 billion (HK$7.8 billion) annually between 2007 and 2022.
Meanwhile, developer C C Land (1224) will remain conservative and reserve cash this year to prepare for a possible "long winter" amid uncertainties, deputy chairman and managing director Peter Lam How-man said.
Lam said the recent financial turmoil has led to the developer's conservative strategy and it will only buy top-class projects with "good value" this year.
He believes global interest rates will continue to rise and thinks it is still too early to tell whether the US hiking cycle is over, in contrast to the recent market bets of rates peaking in May.
Lam also said the mainland's property market is still unstable despite improvements last month, and that the developer has no investment plans in Hong Kong for now.
With 1,219 rooms, the dual-branded Sheraton property is the second-largest hotel in the city. Sing Tao
