Hong Kong Hotel Complex Sells for HK$2.7 Billion Amid Distress
What happened
The Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton complex, which is the city’s third-largest hotel by room count, has been sold for HK$2.7 billion (US$344 million). The sale was managed by Savills, and AlixPartners is one of the receivers. The buyer is Oceanfront Hong Kong Limited, which is controlled by Malaysian property developer ParkCity Group.
From thestar.com.my
Why it matters
The complex was seized by receivers after the mainland Chinese developer, Shimao Group, failed to sell it despite lowering the asking price from at least HK$6 billion to HK$4.5 billion. Deloitte noted that the sale price was below the property’s valuation, suggesting that Hong Kong is currently a buyer’s market.
From thestar.com.my
Who's involved
- AlixPartnersReceiver of the hotel complex
- SavillsArranged the bidding process for the property
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- AlixPartnersSpeculative
AlixPartners might see changes in revenue from its receivership and consulting services following the asset sale
- SavillsSpeculative
Savills could see changes in revenue from real estate services following the completion of the bidding process