Reclusive Chinese billionaire strikes US$33m deal to take over Shanghai hotel

China's first online gaming billionaire, Chen Tianqiao, has purchased the Mia Hotel in central Shanghai for approximately US$32.6 million, becoming another investor to take notice of the country's struggling property market. The 53-year-old entrepreneur, who prefers to stay out of the public eye, acquired the hotel from Singapore-based investment firm GLP at a discounted price.

Chen, who gained his fortune through an exclusive Chinese license for the popular video game The Legend of Mir 2 in 2001, appears to be looking to capitalize on the prolonged decline in China's property market since 2020.

Shanda Group, Chen's investment company founded as an online gaming firm, assumed full ownership of the hotel on March 18, purchasing the stake owned by a subsidiary of GLP. Analysts believe the deal for the 11-floor hotel in the city's Huangpu district carries potential upside, as demand for prime real estate assets in major Chinese cities has increased in recent months due to anticipation of a market recovery.

Property consultant E-house China Research and Development Institute, vice-president Yan Yuejin, stated that the hotel's below-market price and location in a prime area make it a "sound investment".

Despite the hotel's promising outlook, it faces challenges, such as competition from similar properties in the surrounding area and relatively weak consumer confidence. Chen, a Chinese national living in California, became China's youngest billionaire at age 31 when Shanda listed on the Nasdaq in 2004. His wealth grew from securing an exclusive Chinese operating license for the game The Legend of Mir 2 in 2001, which turned profitable within a month of launching.