Shifts at Dalian Wanda Commercial Properties drive credit downgrade

R&F Properties will buy Wanda's properties for $9.22 billion.
Wanda Vista Hefei

Wanda Hotel Development Co. is reportedly planning to buy Wanda Hotel Management (Hong Kong) Co. from a unit of its parent company Dalian Wanda Commercial Properties Co. for $112.4 million, according to a statement posted on the website of the Hong Kong Stock Exchange. 

Wanda Hotel Management will continue to manage hotel projects that were sold to R&F Properties and Sunac China Holdings in July until each contract expires. The two buyers have reportedly offered priority to the hotel management entity to extend those contracts.

Last month, Wanda Hotel Development said that it planned to take over theme park operator Wanda Culture Travel Innovation Group Co for $950 million. The company is still in talks with Wanda Culture and Dalian Wanda Commercial Properties regarding the structure and terms of the acquisition.

Virtual Roundtable

Post COVID-19: The New Guest Experience

Join Hotel Management’s Elaine Simon for our latest roundtable—Post COVID-19: The New Guest Experience. The experts on the panel will share how to inspire guest confidence that hotels are safe and clean and how to win back guest business.

Wanda Hotel Management operates 65 hotels in China and has contracts to manage and operate 13 more owned by third parties that are still under construction. Two of those are being built in Malaysia and Turkey.

By this morning, S&P Global had lowered its credit rating for Dalian Wanda Commercial Properties to junk—to double-B from triple-B-minus—citing uncertainties about the group’s business outlook and access to funding.

S&P is reportedly concerned that, as DWCP sells its entire hotel portfolio, it will lose cash flows used to service debt.

Suggested Articles

The 207-room Dream Cleveland is set to begin construction in early 2021.

The Bellagio, New York-New York, MGM Grand, the Signature, Caesars and the Flamingo will reopen with measures in place to prevent COVID-19 spread.

A number of states offer immediate property tax relief related to disasters and calamities.