AsianFin -- Wanda Hotel Development on Thursday announced plans to sell 100% of its wholly owned subsidiary, Wanda Hotel Management (Hong Kong) Co. Ltd., to Chinese online travel platform Tongcheng Travel for approximately HK$2.497 billion (about US$320 million).

According to sources familiar with the matter, proceeds from the sale—if approved—may be used to distribute dividends to shareholders. “The funds will help Wanda Group deleverage, reduce debt, and optimize its balance sheet,” one source said.

Wanda Hotel Development is a key asset under Dalian Wanda Commercial Group and serves as the main operator of the group’s hotel business. As of its latest filings, the company’s majority shareholder is Wanda Commercial Properties Overseas Ltd., holding a 65.04% stake. The ultimate controller behind that entity is Wang Jianlin, chairman of the Wanda Group.

This means Wang could receive at least 65% of any distributed proceeds, potentially netting around HK$1.5 billion in dividends from the sale.

Analysts suggest that the move is aimed at meeting upcoming debt obligations. Wanda is due to repay a 250 million yuan bond on April 29, and selling this core asset appears to be part of a broader effort to manage liquidity and avoid default.