Buyers show interest in Hong Kong hotel complex seized from firm linked to Chinese billionaire Hui Wing Mau

Sole agent Savills is conducting a formal tender for the 1,219-room property on Lantau Island, near Tung Chung MTR station and Hong Kong International Airport, with the process expected to close on August 31, as reported by the South China Morning Post.

The Marriott-operated complex was seized after mainland Chinese developer Shimao Group failed to sell it, even after cutting the asking price to about HKD$4.5 billion (US$574 million) in late 2024, down 25% from a year earlier.

The group is controlled by the family of Hui Wing Mau, a Chinese property tycoon with a net worth of $1.9 billion, according to Forbes.

“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 expressions of interest, the property attracted a number of serious, well-capitalized buyers, and we have been in substantive discussions with several of them,” Lee said, adding that the transition of ownership will be confirmed soon.

Completed in 2020, the property has a gross floor area of about 56,670 square meters and was estimated to have cost more than HKD107,600 per square meter to develop. Savills said no floor price had been set for the tender.

The latest effort to sell the asset comes as banks increasingly focus on containing losses rather than postponing them. Tighter capital requirements, stricter regulatory treatment of troubled loans, and increasing scrutiny from rating agencies have raised the cost of holding distressed commercial property exposure.

The hotel complex posted a blended occupancy rate of about 85% in the first quarter. It also contains one of Hong Kong’s largest event venues, including a 1,236-square-meter column-free grand ballroom, function rooms, and an outdoor garden, making the complex a destination for weddings and meetings, incentives, conferences, and exhibitions events across the region.

Despite the sale process, operations have continued without interruption, with strong venue bookings. Savills and the receivers plan to hold roadshows in the coming months to “bring the opportunity directly to investors across the globe,” said Godfrey Cheng, deputy senior director, investment CEO office, at Savills Hong Kong.

Cheng said that even with the U.S. Federal Reserve signaling a possible interest rate increase later this year, prospective buyers were expected to “take a long-term view” rather than speculate.

“The type of buyer (for these hotels) is not subject to financing constraints,” he said, adding that they had cash on hand and were seeking attractive deals in Hong Kong to diversify their portfolios.

“I think (investors) would also be global because it’s rare to have an international brand hotel (up for sale) in Hong Kong,” Cheng said. “Lots of Southeast Asian investors are paying close attention to Hong Kong.”