“Uncertainty continues”
South Shore Holdings, operator of the beleaguered 13 Hotel in Macau, posted losses of HK$442 million (US$56.5 million) for the six months to September 30, up 18 percent from the same period in 2017.
The losses were primarily due to an increase in finance costs, depreciation and amortization charges and hotel operation expenses at the ultra-luxury hotel, which opened on August 31 after years of delays.
Inside Asian Gaming reports that South Shore’s group-wide revenue for the period actually increased 44 percent to HK$4.44 billion thanks to its engineering arm PYE, but current liabilities exceed assets by HK$3.87 billion. The company says it’s “working to obtain further facilities in order to enhance the liquidity of the group for hotel operations.”
While the company says it should be able to fund future operations if its short-term financing plans succeed, “the likelihood of the successful implementation of these financing plans and measures could not be determined as at the date of this report. These events or conditions, along with other matters indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern.”
The 13 has a dedicated space for 66 gaming tables, but has made no progress opening a casino. Macau’s Gaming Inspection and Coordination Bureau stated earlier this year that the city’s new-to-market table allocation for 2018 has been “maxed out” under the government’s 3 percent cap on growth.
