Shares of Shimao Group (HKEX: 00813) tumbled more than 10% during afternoon trading. At the time of writing, the stock was down 10.31% to HK$0.087, with a turnover of HK$3.715 million.

The decline follows reports indicating that a major hotel property in Hong Kong owned by Shimao Group may be subject to receivership. According to the reports, several banks are preparing to take over the Sheraton hotel property near Hong Kong International Airport due to Shimao Group's failure to repay a loan of approximately HK$4.5 billion.

The assets in question comprise the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton Hong Kong, Tung Chung. Combined, these properties offer over 1,200 guest rooms, constituting the second-largest hotel portfolio in Hong Kong.

Sources familiar with the matter indicate that lenders are in advanced discussions regarding the appointment of receivers. This move aims to expedite the process of selling the hotels and recovering the funds. It was noted that Shimao Group had already defaulted on the loan by the end of 2025.