Jinfeng has spent over 4 billion yuan on Shanghai hotels this year.
Photo from CFP
By WANG Tingting
The recovery in tourism means hotel values are creeping back up, providing an opportunity for real estate companies to sell hotels for cash.
Shanghai Bvlgari Hotel, listed for a month, found a buyer in Jinfeng Cement Group on Tuesday. The sale is expected to be completed by the end of the first half of 2024
In October, OCT Shanghai Land revealed plans to sell part of its beleaguered Shanghai Suzhou River Bay project for 2.4 billion yuan (US$340 million), namely the Bvlgari Hotel. OCT is selling assets to repay loans.
Jinfeng Cement Group was established in 2000, with its largest shareholder being Jinfeng Holding Group with a 97 percent stake. This is the group’s second hotel purchase this year.
In August, the Sheraton Shanghai Hongkou Hotel was bought by Yuzi Business Management for 1.6 billion yuan. Yuzi is owned by two companies, each controlled by Jinfeng Holding Group.
Originally a cement factory, Jinfeng has diversified into financial services, real estate, media, property management and hotels. It is one of the top 500 private enterprises in China.
This year, industrial interests have snapped up and number of high-end apartments and hotels in Beijing and Shanghai, as most real-estate companies still face severe funding pressure. It’s a quick way for developers to cash out.