China Jinmao sells 5-star Ritz-Carlton hotel in Hainan’s Sanya for US$322 million
Asset restructuring aims to boost liquidity as mainland China developers face a prolonged property downturn
Shanghai Jinmao, the developer’s wholly owned unit, reached an agreement with Sanya Luanmao on Tuesday to sell its 100 per cent stake in Sanya Tourism, which solely owned the Ritz-Carlton Sanya Yalong Bay, China Jinmao said in a statement to the Hong Kong stock exchange on Wednesday.
“Since its opening, the Ritz-Carlton Sanya Yalong Bay has demonstrated mature and stable operations with favourable profitability and cash flow, positioning it as a prime candidate for the company’s boutique portfolio strategy,” China Jinmao said. “Asset securitisation will maximise the valuation and liquidity of the hotel assets.”
Shares of China Jinmao fell 0.8 per cent to HK$1.21 on Wednesday in Hong Kong, where the stock market traded for half a day on Christmas Eve. The stock has advanced 23 per cent this year, trailing a 29 per cent gain in the Hang Seng Index.