A group of banks are moving to take over a Sheraton-branded hotel property near Hong Kong’s airport after owner Shimao Group Holdings Ltd defaulted on a HK$4.5 billion loan late last year [1, 2, 3]. The hotel complex, which includes Sheraton and Four Points by Sheraton Tung Chung, has more than 1,200 rooms and is Hong Kong’s second-largest hotel by room count, according to Jones Lang LaSalle [1, 2, 3].
Shimao’s units failed to repay the loan secured against the property in late 2025, triggering lenders to push for receivership [1, 2, 3]. The original lenders include HSBC, Bank of China (Hong Kong), Bank of East Asia, and others [1, 2, 3]. Banks are now in advanced talks to appoint receivers to take control of the property and speed up its sale to recover funds [1, 2, 3].
Shimao had previously tried to sell the hotel but cut the asking price from about HK$6 billion in 2023 to around HK$4.5 billion in late 2024 without success [2, 3]. The Sheraton complex opened in 2020 and is located near the airport, offering more than 1,200 rooms across two branded hotels [1, 2, 3].
Shimao first defaulted on offshore debt in July 2022 and later obtained court approval for offshore debt restructuring in March 2025 [2, 3]. The firm’s struggles reflect growing distress in Hong Kong’s commercial real estate sector. Banks have increased hands-on management of bad debt through receivership amid a rising pile of defaults [2, 3].
Examples include Bank of China appointing PricewaterhouseCoopers to recover a HK$5.5 billion syndicated loan linked to the HK NEO office tower and Bank of East Asia appointing EY-Parthenon to manage the One Bedford Place office tower [2, 3].
The banks’ next step is expected to be appointing receivers this month to take control of the Sheraton hotel property and proceed with its sale, aiming to recover funds for creditors [1, 2, 3].
