New World Development Co., facing significant debt, is reportedly in discussions to sell its 50% stake in a $2 billion portfolio of three Hong Kong hotels. The hotels involved are the Grand Hyatt, the Renaissance Harbour View Hotel, and the Hyatt Regency in Kowloon. The Abu Dhabi Investment Authority (ADIA) owns the other half of this portfolio.
The potential buyer is Singapore-based Aravest, a real estate manager backed by Sumitomo Mitsui Finance & Leasing. If the deal goes through, New World is expected to receive approximately $300 million in cash after accounting for debt. This sum, however, represents a modest portion of New World's substantial net debt, which stood at around HK$122.7 billion ($15.7 billion) at the end of 2025.
New World has been actively seeking solutions for its debt issues. Previous discussions with investors like Blackstone Inc. regarding a stake in the company itself stalled due to concerns about ceding control and contingent liabilities related to a mall near the city's airport. While negotiations for the hotel sale are ongoing, they are confidential and could still fall apart. New World Development officially stated that as of May 5, 2026, no agreement requiring disclosure under listing rules had been reached, despite approaches from potential buyers for its various assets, including its Hong Kong hotel properties.
Aravest, established in 2024, was formed after ESR Group Ltd. sold the private funds business of ARA Asset Management Ltd. to a consortium led by Sumitomo Mitsui Finance & Leasing. Aravest manages approximately $9.3 billion in assets and has experience in the hospitality sector, including the acquisition of the former Hotel Miramar in Singapore last year.
