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Shimao (0813)’s Sheraton Hong Kong Tung Chung Hotel and Four Points by Sheraton Hong Kong, Tung Chung have been taken over and seized as mortgages by a syndicate of banks due to loan defaults, involving a loan principal amount of up to HK$4.5 billion.
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Both hotels are currently still operating normally.
It is understood that the takeover of the hotels is led by HSBC. Two receivers from global consulting firm AlixPartners have been appointed, including partner & managing director Una Ge.
The tender period runs from now until August 31.
Bloomberg, citing sources earlier this month, reported that a group of Shimao’s creditor banks were preparing to take over the two hotels.
The lenders had in-depth discussions with the receivers regarding the properties. The relevant plan was initiated at the end of last year.
In March 2023, Shimao commissioned an agent to put its hotel up for sale, asking for HK$6 billion to HK$6.5 billion. However, it remained unsold.
Last January, the hotel, along with its surrounding shopping mall, Bayview Garden, was offered for sale at a reduced price of HK$4.5 billion, but a buyer has yet to be found.
A joint venture with Shimao holding an 80 percent stake won the bid for the site in October 2014 for HK$1.83 billion. The project has a total gross floor area of 610,000 square feet, with the hotel occupying 139,000 square feet and offering 1,219 rooms, making it the second-largest hotel in Hong Kong in terms of room count.
