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June 25, 2026
[TENDER] Sheraton & Four Points Dual-Brand Hotel Complex Offered via Receivership Sale

Hong Kong’s Largest Hotel Distress Asset Put to Public Tender as Lenders Seek Bids at Calibrated Valuation Over HK$3 Billion

HONG KONG — One of Hong Kong’s largest waterfront hospitality assets has officially transitioned into receivership and is being placed on the market via a public tender exercise. Savills (Hong Kong) has been appointed as the exclusive marketing agent to handle the sale of the landmark dual-branded Marriott complex in Tung Chung, Lantau Island, following a loan default by developer Shimao Group Holdings.

The transaction is being orchestrated directly by a consortium of leading lenders, including HSBC, Bank of China (Hong Kong), and Bank of East Asia, ensuring an institutional-grade, risk-free title transfer for international institutional investors, regional family offices, and sovereign funds.

Valuation Corrected Below Replacement Cost

The public tender exercise represents a historic buyer's premium in the region's commercial real estate market, with lenders shifting targets to accelerate capital liquidation:

Strategic Pricing Adjustment: Originally seeking over HK$6 billion in 2023 and subsequently marked down to HK$4.5 billion under Shimao's private campaigns, the tender will proceed on a "highest bid wins" basis. Market sources reveal that lenders are now targeting bids starting at over HK$3 billion, representing a massive valuation drop from its peak.
Deep Discount to Replacement Value: The complex spans 610,000 square feet of gross floor area. Taking into account the HK$1.83 billion land premium paid in 2014 and the high-spec construction cost of over HK$7,000 per square foot, the aggregate initial development cost exceeded HK$6 billion. A transaction at the current HK$3 billion mark allows incoming buyers to acquire the asset significantly below historical replacement costs.
Transparent Legal Safeguards: Because the tender is managed directly by a syndicate of mainstream banks and court-appointed receivers, incoming buyers bypass all legacy offshore corporate debts, guaranteeing an accelerated, transparent closing process.

Asset Profile: Hong Kong's Second-Largest Hotel Inventory

Completed in late 2020, the 18-story architectural development stands as Marriott International’s premier dual-brand integration in Hong Kong, comprising 1,219 guest rooms sitting atop the T Bay lifestyle retail podium:

Sheraton Hong Kong Tung Chung Hotel (218 Keys): A luxury 5-star flagship featuring high-end executive lounges, specialty panoramic dining, and outdoor pool infrastructure aimed at upscale leisure and premium corporate travelers.
Four Points by Sheraton Hong Kong, Tung Chung (1,001 Keys): A high-utilization, select-service hotel designed for maximum volume. It captures predictable baseline revenue through massive airline crew housing contracts, tour groups, and airport transit visitors.

The property is positioned inside the Greater Bay Area’s central economic corridor on the Tung Chung waterfront, just 10 minutes from Hong Kong International Airport and AsiaWorld-Expo. It includes 3,400 square meters of MICE exhibition space and a pillar-free grand ballroom.

Robust Yield Projections Under Marriott Management

Crucially for potential bidders, the underlying business operations generate strong, uninterrupted momentum under Marriott’s management. The property recorded a net operating income of HK$130 million in 2025, which is projected to reach HK$150 million this year. At the new HK$3 billion valuation benchmark, incoming institutional buyers can lock in a 4% to 5% net investment yield. Bidders will be acquiring a turnkey asset with stable staffing, continuous operational history, and optimized revenue streams already in place. The public tender closes on August 31. (Reported by Building.hk)

Photo: Savills (Hong Kong)