(May 5): New World Development Co, the cash-strapped property developer, is in talks to sell its 50% stake in a portfolio of three Hong Kong hotels valued at a total of US$2 billion ($2.5 billion), people familiar with the matter said.
The portfolio includes the Grand Hyatt, the Renaissance Harbour View Hotel, and the Hyatt Regency in Kowloon, the people said, asking not to be identified because the deliberations are confidential. Abu Dhabi Investment Authority owns the other half of the portfolio.
The potential buyers include Singapore-based Aravest Pte, a Sumitomo Mitsui Finance & Leasing Co-backed real estate manager that oversees about US$9.3 billion in assets. New World is expected to pocket about US$300 million in cash after netting off debt, one of the people said.
Negotiations are ongoing and could still break down, the people said.
New World has long been seeking a broader solution to its debt challenges. Talks with outside investors, including Blackstone Inc, on taking a stake in the firm itself have stalled amid concerns over ceding control and its contingent liabilities owed to the government tied to a mall near the city’s airport.
The hotel deal would only provide relatively modest proceeds against New World’s roughly HK$122.7 billion in net debt as of the end of 2025.
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A spokesman at New World didn’t respond to repeated requests for comment. Representatives at Aravest and Sumitomo Mitsui Finance declined to comment.
Aravest was spun out in 2024 after ESR Group Ltd sold the private funds business of ARA Asset Management Ltd, which it acquired, to a consortium led by Sumitomo Mitsui Finance & Leasing. The mid-sized, Asia-focused manager led the acquisition of the former Hotel Miramar in Singapore last year through a fund structure, and its broader portfolio spans hospitality, office and retail.
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