Group 1 - Shenzhen Futian Cultural Tourism City Service Co., Ltd. won the bid for land parcel A301-0608 located in Shajing Street, Baoan District at the base price [1] - The land area of the parcel is approximately 101,763.59 square meters, with a total construction area of about 330,701 square meters, including approximately 310,000 square meters already built [2] - The starting price for the land use rights is 621 million yuan, while the assessed value of the hotel building is approximately 2.805 billion yuan, making the total starting price for the hotel assets around 3.426 billion yuan [2] Group 2 - The winning bidder is required to sign a contract with the Baoan District Finance Bureau, with the payment for the hotel price to be made in four installments, the first installment being approximately 280 million yuan [3] - Shenzhen Bay Area Convention International Hotel, which opened in 2023, is positioned as a cluster-type urban business garden hotel with a total investment exceeding 3 billion yuan and approximately 4,000 guest rooms, making it one of the largest hotels in Shenzhen [3] - The hotel is strategically located near the Shenzhen International Convention and Exhibition Center and the upcoming Huafa Ice and Snow World project, which is expected to be the largest indoor snow world globally [3] Group 3 - Shenzhen Futian Cultural Tourism City Service Co., Ltd. was established on August 13, 2024, as a wholly-owned state-owned enterprise controlled by the Futian District Finance Bureau, with a registered capital of 1 billion yuan [4] - The company focuses on urban services, cultural tourism, and public facility management, covering diverse businesses such as marketing planning, tourism development, and municipal management [4]

Core Viewpoint - The Shenzhen Bay Area Convention International Hotel is being auctioned with a starting price of 621 million RMB, significantly lower than its total investment of over 3 billion RMB, leading to public speculation of a "2.2 discount sale" which is a misinterpretation of the actual valuation and auction structure [1][2][3] Group 1: Auction Details - The land parcel A301-0608 is being offered with a starting price of 621 million RMB, covering an area of approximately 100,000 square meters and a total construction area of about 330,000 square meters, including 310,000 square meters of completed buildings [2][3] - The total assessed value of the hotel building is approximately 2.805 billion RMB, leading to a combined starting auction price of around 3.462 billion RMB when including the land use rights [3] - The payment for the hotel price can be made in four installments, with the first payment being approximately 280 million RMB, easing the financial burden on potential bidders [3] Group 2: Hotel Operations and Market Context - The Shenzhen Bay Area Convention International Hotel, which opened in 2023, is the largest hotel in Shenzhen with around 4,000 rooms, primarily serving business events and conferences [2][4] - The hotel is strategically located near the Shenzhen International Convention Center and is expected to benefit from the upcoming opening of the Huafa Ice World, which is anticipated to increase foot traffic and enhance hotel occupancy rates [5][6] - Despite the potential for increased business, the hotel's large scale presents operational challenges, and the "dual-use" responsibilities may deter some investors [4][6] Group 3: Market Reactions and Future Outlook - The auction results for the land parcel will be announced on August 22, and the market is closely monitoring the situation due to the unique circumstances surrounding the hotel and its location [7] - Current market sentiment towards hotel assets is mixed, with some investors showing interest due to the hotel's location and size, while others remain cautious due to operational pressures [6]