Guangzhou Evergrande Real Estate Co., Ltd. (Evergrande Real Estate) will auction the entire building of Evergrande Wanda Mandarin Hotel located in the Quanzhou area of Fujian on November 3, with a starting price discounted by nearly 30% compared to the market reference price. This marks another auction of Wanda series hotels previously acquired by Evergrande Real Estate.
According to information from Jingdong Judicial Auction, a mainland asset auction platform, the Evergrande Wanda Mandarin Hotel will be auctioned as a whole on November 3, with a starting price of approximately 331 million yuan (RMB, the same below), discounted by nearly 30% compared to the market reference price of 473 million yuan.
Eight years ago, Evergrande Real Estate acquired 73 city hotels from the Wanda Group for 18.955 billion yuan. At that time, Evergrande Real Estate believed that these hotels could contribute 7 billion yuan in revenue and 1.5 billion yuan in net profit annually. However, what seemed like a perfect deal at the time later became a burden on the company. Starting from 2022, Evergrande Real Estate began adopting a “sell hotels to survive” model.
According to a report from “Daily Economic News” on October 18, in June 2022, Beijing Wanda Vista Hotel was sold for 550 million yuan, resulting in a loss of 6.53 million yuan compared to the acquisition cost, marking the beginning of Evergrande Real Estate’s hotel sell-off. In December of the same year, Fuzhou Westin Hotel was transacted for 430 million yuan, shrinking by 30% compared to the evaluation price. In 2024, Evergrande Real Estate sold the London ONE project for 1.6 billion pounds, reduced by 46% from the acquisition price in 2017.
On September 9, 2025, Changsha Evergrande Wanda Mandarin Hotel was transacted for about 513 million yuan; on September 23, the first auction of Langfang Evergrande Wanda Vista Hotel failed, with an assessed value of 277 million yuan, starting price at 194 million yuan, as no one bid leading to the failure; on October 23, Ningde Evergrande Wanda Vista Hotel will undergo a second auction at a discount of around 50-60%, with a starting price of approximately 278 million yuan. On November 3, Quanzhou Evergrande Wanda Mandarin Hotel will be auctioned as a whole.
Evergrande Real Estate’s 2024 annual report shows that it now only has assets of 22 hotels. With recent auctions of Wanda series hotels in Quanzhou, Langfang, and other areas, the number of hotel assets held by Evergrande Real Estate is likely to fall below 20.
As for the reasons for disposing of these assets, Evergrande Real Estate mentioned in a September 2024 announcement that 614 million US dollars of overseas debts were not repaid, leading to 68 hotels and an office building being taken over by creditors, a significant factor in the sharp reduction in the number of hotels.
“Daily Economic News” indicated that from a financial perspective, whether the remaining assets of Evergrande Real Estate can support it through the difficulties remains unknown. In the first half of 2025, Evergrande Real Estate’s operating income decreased by 59.43% year-on-year to 5.765 billion yuan, with a shareholder’s net loss of 4.046 billion yuan. The net cash and cash equivalents on the balance sheet stood at 3.508 billion yuan, while the current liabilities reached a high of 248.1 billion yuan, including short-term debts due within a year totaling 97.59 billion yuan.
From an industry perspective, Evergrande Real Estate’s predicament is not unique. Data from Cushman & Wakefield shows that by the end of 2024, the total amount of hotel investment transactions in mainland China was 17.87 billion yuan, with 68% of the sellers being developers. In the backdrop of a sluggish real estate market and difficulties in financing, “selling hotels to recoup funds” has become a common choice for many distressed real estate companies.
“Daily Economic News” quoted Bai Wenxi, Vice Chairman of the Chinese Enterprise Capital Alliance, as saying that the disposal of core assets by distressed real estate companies like Evergrande Real Estate is a common practice in the industry. While they can quickly raise funds through auctions, it is only a drop in the bucket compared to their massive debts. The greatest value of disposing of these assets lies in avoiding cross defaults, maintaining public market credit, rather than completely solving the debt problems.
Public information shows that Guangzhou Evergrande Real Estate Co., Ltd. was established in August 1994, headquartered in Guangzhou, and its main business includes real estate development, design, engineering supervision, and property management. In July 2023, Evergrande Real Estate applied for bankruptcy reorganization, which was later ruled inadmissible by the court. In July 2024, its subsidiary company received a winding-up petition, and the case was heard in September at the High Court of Hong Kong. In March 2025, the company’s 2.49 billion yuan equity was frozen.
According to legal litigation information from Tianyancha, on October 15, Evergrande Real Estate and Guangzhou Evergrande Xingsheng Real Estate Development Co., Ltd. added a new subject of execution information, with the execution target exceeding 640 million yuan, involving a contract dispute case, with the executing court being the Guangzhou Intermediate People’s Court in Guangdong Province, China.
Risk information indicates that Guangzhou Evergrande Real Estate Co., Ltd. currently has 90 pieces of executive information, with a total amount of execution exceeding 16.3 billion yuan. Additionally, the company has multiple restrictions on consumption orders and dishonest debtor information.