ParkCity-linked firm buys two Hong Kong hotels for RM1.4b

A company part-owned by ParkCity Group, the Malaysian developer of Desa ParkCity in Kuala Lumpur, has agreed to buy the Sheraton Hong Kong Tung Chung Hotel and the Four Points by Sheraton Hong Kong, Tung Chung for HK$2.7 billion (about RM1.4 billion). It is an asset sale: the buyer takes the hotels and their business, not the company that owns them. The seller is a unit of the debt-laden Chinese developer Shimao Group Holdings, acting through receivers appointed by its lenders. Shimao disclosed the deal in Hong Kong on 22 October 2026.

The buyer, Oceanfront Hong Kong Ltd, signed two linked sale agreements on 20 October. Shimao's filing says it is owned "among others" by investment vehicles associated with ParkCity Group; Una Ge of AlixPartners, one of the receivers, said ParkCity holds the majority. Completion is expected by the end of 2026, and the price is subject to adjustment.

The property

• Location: on the Tung Chung waterfront, next to Hong Kong International Airport
• Rooms: 218 at the five-star Sheraton and 1,001 at the Four Points, 1,219 in all. Savills, which ran the tender, ranks it third in Hong Kong by room count
• Also included: T Bay, the complex's shops, restaurants and bars
• Size: 610,371 sq ft of approved floor area on a site of about 12,902 sq m (3.2 acres)
• Land: a 50-year government lease, won by Shimao and Mingfa at a 2014 tender for HK$1.83 billion
• Opened: December 2020 and January 2021. Marriott runs both and will keep their brands
• Trading: RMB228 million of revenue in the first half of 2026; occupancy about 85% in the first quarter

How it came to be sold

• 2023 to 2024: Shimao asked HK$6 billion to HK$6.5 billion, then about HK$4.5 billion, and found no buyer
• 1 June 2026: lenders led by HSBC put the hotels into receivership after a loan of up to HK$4.5 billion went unpaid
• 23 June to 31 August: Savills ran a tender; the receivers had hoped for about HK$3 billion

All the net proceeds go towards the loan, so Shimao expects no cash from the sale.

The numbers

• Per room: HK$2.7 billion ÷ 1,219 rooms ≈ HK$2.21 million, or about RM1.15 million
• Per sq ft of floor area: HK$2.7 billion ÷ 610,371 sq ft ≈ HK$4,424, or about RM2,294
• Against the land cost: about 1.5 times the HK$1.83 billion paid for the bare site in 2014, so the finished hotels cost the buyer about HK$870 million more than the land did
• Against earlier prices: 40% below both the HK$4.5 billion loan and the late-2024 asking price, and 10% below the receivers' HK$3 billion hope
• Lease left: about 38 years

Against Penang hotel prices

• Courtyard by Marriott Penang: sold for RM165 million in 2024, about RM829,000 a room (our report)
• DoubleTree Resort by Hilton Penang: asking RM250 million, about RM791,000 a room (our report)
• Holiday Inn & Suites Penang Prai: reportedly asking RM220 million to RM230 million, about RM663,000 to RM693,000 a room (our report)
• Cititel Penang: asking RM163 million, about RM361,000 a room (our report)

Even at a distressed price, a room at the airport complex costs about 1.4 times a room at the Courtyard Penang, which opened at about the same time.

The buyer

ParkCity Group, also known as Perdana ParkCity, is the property arm of Sarawak's Samling Group. It has built the 473-acre Desa ParkCity township since 2002, is developing ParkCity Hanoi in Vietnam and owns the ParkCity Everly hotels in Miri and Bintulu. A ParkCity spokesperson called the Hong Kong purchase a long-term investment, citing the airport, the Hong Kong–Zhuhai–Macau Bridge and planned developments nearby.

Cover photo: Sheraton Hong Kong Tung Chung Hotel. Marriott Bonvoy, via EdgeProp.