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R&F Sells Changsha Hotel at 30% Discount as Luxury Portfolio Begins to Unravel

Published: Sep. 17, 2025 3:52 a.m. GMT+8

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As of June, R&F faced a 103.2 billion yuan gap between cash and short-term liabilities due within a year

A five-star Wanda Vista hotel in Changsha was sold last week for 514 million yuan ($72 million) in a court-ordered auction — nearly 30% less than what R&F Properties Ltd. paid for the property eight years ago.

The buyer, a recently established company named Hunan Lichi Consulting Management Co., acquired the hotel at its opening bid. The sale was forced by R&F’s domestic lenders and marks the first major disposal from a portfolio of distressed luxury hotels owned by the developer, which was once the world’s largest luxury hotel owner but is now buckling under massive debt.

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Wanda Vista hotel in Changsha sold at court auction for 514 million yuan, 30% below R&F’s original purchase cost, as part of R&F’s debt crisis.
R&F faces a 103.2 billion yuan liquidity gap and over 91% asset-liability ratio, with both domestic and offshore loans in default.
Domestic lenders are seizing assets, leaving offshore bondholders sidelined due to legal and cooperation disputes; further hotel auctions are expected at steep discounts.

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Who’s Who

R&F Properties Ltd.: R&F Properties Ltd., once the world's largest luxury hotel owner, is facing a severe liquidity crisis. The company's operations are now reliant on monthly sales due to massive debt, with an asset-liability ratio exceeding 91%. Its portfolio of luxury hotels, acquired in 2017, is being auctioned off by domestic lenders to cover defaulted loans.

Hunan Lichi Consulting Management Co.: Hunan Lichi Consulting Management Co. is a recently established company that purchased the Wanda Vista hotel in Changsha for 514 million yuan ($72 million) in a court-ordered auction. They acquired the hotel at its opening bid. This sale marks the first major disposal from a portfolio of distressed luxury hotels owned by R&F Properties Ltd.

Dalian Wanda Group: Dalian Wanda Group sold 73 hotels to R&F Properties in 2017 for 18.96 billion yuan. This deal significantly expanded R&F's hotel portfolio, making it the world's largest luxury hotel owner at the time.

China Merchants Bank: China Merchants Bank led a syndicate of domestic banks that provided a 11.94 billion yuan syndicated loan to R&F Properties in 2017. This loan, secured by R&F's hotels as collateral, is now in default. The bank is among the Chinese creditors who have started seizing and auctioning these properties to recover their outstanding 7.6 billion yuan.

Temasek Holdings: Temasek Holdings is a Singaporean state-owned investment company. In 2017, a fund linked to Temasek Holdings provided $540 million in offshore loans to R&F Properties Ltd. This loan was secured by equity in offshore holding companies that controlled R&F's hotel assets. These loans are now in default.

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What Happened When

2017：: R&F Properties Ltd. acquired 73 hotels from Dalian Wanda Group for 18.96 billion yuan.

2017：: A five-star Wanda Vista hotel in Changsha was valued at over 1.1 billion yuan.

2017：: R&F Properties Ltd. obtained an 11.94 billion yuan syndicated loan from domestic banks led by China Merchants Bank, using the hotels as collateral, and raised $540 million from offshore creditors.

Before September 2025：: The Wanda Vista hotel in Changsha was reappraised at 642 million yuan.

As of June 2025：: R&F faced a 103.2 billion yuan gap between cash and short-term liabilities, with total liabilities at 264.4 billion yuan and assets at 289.1 billion yuan.

2025：: R&F's management refused to cooperate with offshore receivers, denying them access to records and seals, resulting in a legal dispute in Guangzhou.

2025：: Both domestic and offshore loans concerning the hotel portfolio were in default.

2025：: Domestic lenders began seizing and auctioning off R&F's properties, starting with the Changsha hotel.

September 2025：: A five-star Wanda Vista hotel in Changsha was sold at a court-ordered auction for 514 million yuan to Hunan Lichi Consulting Management Co.

AI generated, for reference only