Dual-branded Sheraton complex heads for tender, with stricter capital rules pushing lenders to accept quicker disposals
creditors move to dispose of the asset. Sole agent Savills is holding a formal tender that is expected to close on August 31 for the 1,219-room property on Lantau Island, near the Tung Chung MTR station and the Hong Kong International Airport.
The complex, operated by Marriott, was seized after mainland Chinese developer Shimao Group failed to sell it despite slashing the asking price to about HK$4.5 billion (US$574 million) in late 2024, from at least HK$6 billion a year earlier.
“This is a genuinely rare offering – dual-branded with Marriott standards, all under one roof,” said Raymond Lee, CEO at Savills Greater China, during a site visit on Tuesday.
“During previous rounds of EOI [expressions of interest], the property attracted a number of serious, well-capitalised buyers, and we have been in substantive discussions with several of them,” Lee said. “The receivership appointment of AlixPartners brings clarity and decisiveness to the process. With an asset of this calibre, I am expecting the transition of ownership will be confirmed very soon.”
With a gross floor area of around 610,000 sq ft and completed in 2020, the property was estimated to cost more than HK$10,000 per square foot to develop. No floor price had been set for the tender, according to Savills.