Shimao Group, an international investment group, is looking for buyers for its hotel, the Intercontinental Shanghai Wonderland, considered one of the “10 architectural wonders of the world”, Chinese financial media Yicai reported on Sunday.
A number of agents recently advertised the sale at Intercontinental Shanghai Wonderland in Moments on their Wechat accounts, saying the hotel is being sold for 2.25 billion yuan ($354 million).
An agent confirmed the notice to Yicai.
Earlier, a source confirmed that a state-owned company had contact with Shimao, but there has been no substantial progress in the transfer.
With a declining housing market, consolidation in the real estate sector has accelerated. In January, the Shimao Group released a list of assets for sale with a total value of 80 billion yuan.
Among them, the Intercontinental Shanghai Wonderland, with an estimated value of 2.25 billion yuan, is located in a deep pit of Tianma Mountain in the southwest suburbs of Shanghai, and has become the first natural ecological hotel. in the world built in a rock pit on the wall of an abandoned quarry. The hotel was named one of the “Top 10 Architectural Wonders of the World” by US National Geographic’s “Megastructures”.
The hotel, which opened in November 2018 after more than 10 years of construction, has 336 rooms with a total construction area of approximately 61,087 square meters. Shoppers can enjoy breathtaking views of the craggy waterfall from the observation decks. Due to its unique view, the hotel has become a tourist destination in Shanghai, earning about 32 million yuan in revenue in 2018.
According to Shimao Group’s financial report, the hotel recorded revenue of 279 million yuan in 2019 and collected about 265 million yuan in 2020 despite the epidemic. In the first half of 2021, the hotel achieved revenue of 134 million yuan.
Currently, Shimao has four luxury hotels in Shanghai that are up for sale, including the Hyatt on the Bund Hotel. Shimao Group sold a number of assets in major cities such as Hong Kong, Shanghai and Guangzhou, realizing a total of more than 9.4 billion yuan.