HONG KONG: Chinese property developer Shimao Group is seeking to sell its hotel in Hong Kong close to the international airport for HK$6.5 billion ($828 million), according to sales agent JLL on Monday, in a move that could help the company repay debt.

Shanghai-based Shimao, in the process of restructuring $11.8 billion of offshore debt, is among the many Chinese developers that defaulted last year.

The Hong Kong hotel for sale is the Sheraton & Four Points by Sheraton Tung Chung Hotel opened in late 2020. With over 1,200 keys, it is the second largest hotel in the financial hub by number of rooms.

JLL head of capital markets Hong Kong, Oscar Chan, said the hotel’s valuation is slightly higher than the asking price. Shimao bought the land in 2014 for HK$1.83 billion.

A Shimao spokesperson was not immediately available for comment.

Chan said the hotel’s occupancy rate has rebounded quickly after the city lifted travel restrictions late last year, and with interest rates peaking, he expected Shimao would be able to fetch a much higher price than it would have last year when it defaulted on its debt.

Chan said the hotel will be sold via an Expression of Interest (EOI) process, with the first round of submissions expected to be accepted after the Easter holiday in early April.

He added many local investors, major property developers and foreign funds have expressed interest.

Shimao’s shares listed in Hong Kong have been suspended for a year pending the release of 2021 financial results.