HK tycoon Henry Cheng seeking sale of some Rosewood hotels

Hong Kong tycoon Henry Cheng is seeking buyers for properties in the family’s luxury Rosewood Hotel Group as the billionaire clan races to overcome liquidity challenges connected to its real estate unit New World Development.

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Mr Cheng’s representatives have approached some companies for a possible sale of assets in the Rosewood portfolio, according to people familiar with the matter. The discussions were preliminary and could be subject to change, the people said.

The Rosewood operation, led by Mr Cheng’s daughter Sonia Cheng, is owned by the family’s closely held investment vehicle Chow Tai Fook Enterprises. The company bought the former entity that owned the hotel operations and its shareholder’s loan from a subsidiary for HK$1.96 billion (S$326 million) in 2015.

Ever since the Chengs acquired the US-based brand in the early 2010s, Ms Sonia Cheng has built the hotel chain into a recognised name in the high-end hospitality market. The group has 58 properties globally, according to its website.