Shimao To Offload Its 2 Hong Kong Hotels To Malaysia’s Oceanfront For HK$2.7 Billion
The Shimao Group announced that the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton are set to be sold again for HK$2.7 billion ($344 million). Together, the dual-branded complex makes Hong Kong’s third-largest hotel by room count. Shimao, a mainland Chinese developer, said in a filing with the Hong Kong Stock Exchange that the hotels would be sold to Oceanfront Hong Kong Limited, which Malaysia’s ParkCity Group controls.
Receivers seized the property in late 2024, when Shimao was unable to sell it despite dragging its price down to HK$4.5 billion from HK$6 billion in 2023. Analysts pointed out that as the sale price was marked well below the properties’ market valuation, banks would take a loss on disposal. On a macroeconomic level, such a trend positions Hong Kong as an attractive market for foreign investors to enter once property prices settle down.
According to Shimao Group, this sell-off will reduce its overall indebtedness, improving its financial position and boosting the group’s efforts to address its liabilities. The property developer confirmed that it expects the deal to be finalised by the end of this year, and the money from this offloading will be used to partially pay off a loan taken out in 2020.
The two hotels combined make for a property with 1,219 rooms, situated on Lantau Island, near Tung Chung MTR station and Hong Kong International Airport. Real estate developer Savills organised the bidding process, for which the receivers launched the global tender in June, and it concluded in August. The HK2.7 billion figure is not final and could change, and it is inclusive of both the hotel properties and their operating business.
The 610,000-square-foot property was completed in 2020, costing roughly HK$10,000 per square foot to develop. According to Savills, no floor price had been set for the tender. The transaction is designed as two interconditional asset-sale agreements instead of a share transfer. This is to prevent Oceanfront from taking on any debt of Shimao and simply acquiring the hotel properties and operating business.
Shimao has been cooperative throughout the sale process, providing the receiver with all the necessary information. The deal will be completed once the buyer has secured the funds and the transfer arrangements are completed. Marriott, which is the present hotel operator, released a statement confirming that it would continue to operate the hotels under its brand even after the sale.
This acquisition is being hailed as one of the greatest real estate opportunities in Hong Kong, given the hotels’ proximity to the airport and the Hong Kong-Zhuhai-Macau Bridge. It is located at the gateway to the greater Hong Kong area and is one of the largest hotel properties in the city.
The luxury hotel recorded a blended occupancy of 85% in the first three months of this year. The hotel also has one of Hong Kong’s largest event venues, a 13,300-square-foot column-free grand ballroom, function rooms and an outdoor garden. This makes it an attractive venue for destination weddings and big formal or corporate events.
2026 has witnessed several Southeast Asian buyers purchasing commercial properties in Hong Kong. Market analysts have explained that this interest is not merely in the properties, but also in Hong Kong’s stock market. With foreign businesses looking at the city’s financial landscape through an opportunistic lens, real estate stands out as one of the most lucrative investments, particularly following the property market’s adjustment.
Savills’ data revealed that as of September, HK$30.36 billion worth of commercial property deals had been signed in Hong Kong, with properties selling for an estimated HK$50 million. International capital accounted for 30% of total transaction value in Hong Kong’s investment market for the third quarter, the highest since Q4 of 2022.
