Receivers managing the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton have agreed to sell the combined property, making it the city’s third-largest hotel by room count, for HK$2.7 billion, according to a filing by Shimao Group Holdings to the Hong Kong stock exchange. The buyer, Oceanfront Hong Kong, is controlled by Malaysian property developer ParkCity Group.
The hotel complex, located on Lantau Island near the Tung Chung MTR station, was placed under receivership after Shimao failed to secure a sale despite reducing the asking price from at least HK$6 billion a year earlier to around HK$4.5 billion in late 2024. The property features 1,219 rooms spread over a gross floor area of approximately 610,000 square feet and was completed in 2020. Development costs were estimated at more than HK$10,000 per square foot.
According to Deloitte’s Asia-Pacific contingency planning and insolvency leader Glen Ho, the sale price fell well below the property’s valuation, implying that the lending banks may also incur losses from the transaction. Ho noted that the situation highlights Hong Kong’s status as a buyers’ market, with adjusted property prices attracting foreign investment opportunities.
Oceanfront Hong Kong, incorporated in September 2026, lists Malaysian passport holder Joseph Lau—also CEO of ParkCity—and Hong Kong resident Recy Soo Lik as its directors. ParkCity is known for developments in Vietnam as well. Una Ge, a partner and managing director at AlixPartners and one of the receivers, confirmed that ParkCity is the majority shareholder of Oceanfront.
The sale process, arranged by Savills, began with a global tender launched on June 23 and closed on August 31. The final consideration of HK$2.7 billion covers both the hotel properties and their operating business and remains subject to adjustment. The transaction was structured as two “interconditional” asset sale agreements, enabling the buyer to acquire the asset and operations without assuming the existing debts of the borrower company.
Shimao indicated that net proceeds would be applied to partially repay a loan it secured in 2020, which is expected to reduce the group’s overall indebtedness and improve its financial standing. The sale is anticipated to conclude by year-end, subject to the buyer securing financing and completing transfer formalities. Shimao’s management has reportedly cooperated throughout the receivership, while lenders have supported the sale process.
Marriott, which operates the hotels, will continue managing them under the current brands following the handover, according to a joint statement from AlixPartners and Marriott.
A representative for ParkCity described the acquisition as a long-term investment, underscoring the hotels’ strategic location near the airport, the Hong Kong-Zhuhai-Macau Bridge, and future development projects. Industry observers noted growing interest among both overseas and mainland Chinese investors in Hong Kong commercial real estate, with pricing adjustments and broader market opportunities renewing enthusiasm for the city’s property sector. Kelvin Li, director at Midland Commercial, remarked that buyers remain selective but are drawn by a combination of market prices and the appeal of Hong Kong’s financial and investment environment.