Recent market reports indicate that the second-largest hotel property in Hong Kong, owned by Shimao Group (HKG: 00813), may be taken over by lenders. Citing sources, Bloomberg reported that several banks are preparing to take control of the Sheraton Hong Kong Tung Chung Hotel property near the airport, as Shimao has failed 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, which together offer over 1,200 rooms, making it the second-largest hotel property in the city. Sources stated that the lenders are in advanced discussions to appoint receivers to expedite the sale of the hotels and the recovery of funds. Shimao Group had already defaulted on the loan by the end of 2025.

It is understood that the original lending syndicate included HSBC Holdings plc (HKG: 00005), Bank of China (Hong Kong) Limited (HKG: 02388), and The Bank of East Asia, Limited (HKG: 00023), among others. Shimao Group had previously listed the hotel property for sale with an asking price of at least HK$6 billion, but failed to find a buyer. By the end of 2024, the asking price was reduced by 25% to around HK$4.5 billion, yet a sale still could not be concluded.

Around the time this news emerged, Shimao Group announced on the evening of June 5 that Xie Kun had resigned from his position as an executive director of the company due to a need to devote more time to his personal affairs and family. Public records show that Xie Kun joined Shimao Group in July 2010 and was appointed as an executive director in December 2021, serving as senior vice president and chairman and president of the Zhejiang and Central China regional company.