ParkCity Group to buy Shimao’s Sheraton hotel complex in Hong Kong for RM1.4 bil

Malaysia's ParkCity Group is acquiring the Sheraton Hong Kong Tung Chung Hotel and Four Points by Sheraton from distressed Chinese developer Shimao for RM1.4 billion. The sale, expected to close by end-2026, includes the hotels and the T-Bay community hub, following a competitive tender that closed

KUALA LUMPUR (Oct 22): A financially-distressed Chinese property developer is selling its massive hotel complex in Hong Kong to Malaysia’s ParkCity Group for approximately RM1.4 billion. The Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton, along with their business operations, will be acquired by Oceanfront Hong Kong Ltd, a company owned by ParkCity Group that developed the Desa ParkCity township, according to an exchange filing.

The sale is expected to be completed by the end of 2026. The Sheraton Hong Kong Tung Chung Hotel has 218 rooms and suites, while the Four Points by Sheraton offers over 1,000 guest rooms, according to their websites. Together, the two hotels represent the third largest room inventory in Hong Kong, according to real estate firm Savills, which was appointed by Shimao to sell the assets.

The South China Morning Post reported that the sale price was well below the property’s valuation, meaning the banks would also take a loss on the disposal, quoting Glen Ho, Deloitte’s Asia-Pacific contingency planning and insolvency leader. The dual-branded property had been placed into receivership after Shimao defaulted on multiple loans and bonds. A tender was launched in June and closed on 31 August.

The sale also includes T-Bay, Tung Chung’s newest community hub of restaurants, bars and shops. Shimao said in its filing to the Hong Kong Exchange that the bidding process was “highly competitive” and the price tag was concluded after “arm’s length negotiations”.