(Yicai) Oct. 16 -- Overseas Chinese Town Asia Holdings, which almost doubled its net loss in the first half, intends to sell its five-star Bulgari Hotel in downtown Shanghai for no less than CNY2.4 billion (USD330 million) to refresh its portfolio and repay debts.

OCT Asia will sell a series of assets in the Suhewan project which includes serviced apartments for senior citizens, Bulgari Residences apartments, and artist studios, the Hong Kong-based property developer announced recently. The move would allow the group to revitalize its assets, repay loans, and generate returns, it added.

Bulgari Hotel Shanghai, the sixth Bulgari-branded hotel in the world, has more than 80 rooms and suites, each with an area of over 60 square meters, according to public information.

The hotel named after the upscale Italian brand of jewelry, watches, and accessories attracted a lot of attention due to its ultra-high prices when it opened in 2018. Booking platforms show that most rooms cost between CNY6,000 and CNY8,000 (USD828 to USD1,104) a night, which is three to four times the average for a five-star equivalent. The most expensive suite at the establishment with Italian designer furnishings and a 25-meter swimming pool close to the historic Bund costs more than CNY200,000 (USD27,354) per night.

The listed company is selling the project because it needs to raise funds, per Zhao Huanyan, chief knowledge officer at Huamei Consulting. Whether Bulgari Hotel Shanghai will change its name in the future depends on negotiations between the buyer and management, Zhao added. OCT Asia said that the brand status depends on whether the buyer and the brand owner can reach an agreement.

In the first six months of this year, OCT Asia recorded a net loss of CNY212 million (USD29 million), mainly due to a downturn in the real estate market and losses generated by affiliates, according to the company’s latest financial results. The deficit almost doubled as a year ago, net loss was still CNY113 million. In the first half of this year, revenue slumped by 78 percent to CNY194 million from a year ago, mainly caused by a decline in property development income.

Editor: Emmi Laine