Must be reinspected before licensure
The grand opening of the long-stalled 13 Hotel has been delayed to July 31, according to South Shore Holdings Ltd. South Shore reported June 28 that it needed “additional time” to complete work on the luxury hotel after it failed to pass inspection by the Macau Government Tourism Office.
In last month’s filing with the Hong Kong Stock Exchange, the company indicated that the latest opening date “may be further revised according to the actual circumstances in respect of the development.”
As of March, according to the Macau News Agency, the hotel had assets of HK$8.98 billion (US$1.15 million) after an impairment loss of HK$1.2 billion. Those assets include the value of the land, the hotel, and the cost of hotel fixtures, furniture and equipment.
A segment loss of HK$1.5 billion (US$191 million) for the year that ended March 31 represents an impairment loss and pre-opening expenses for 2018, MNA reported. But despite those losses, South Shore said profits were up 21.1 percent year-on-year to HK$298.7 million for the period. Revenues were up 11 percent year-on-year to HK$6.8 billion, while losses totaled HK$1.6 billion.
Also according to the filing, South Shore must pay a bank loan with a principal value of HKD3.04 billion (US$387.4 million) to its lenders. The company said it’s confident it can “obtain all the licenses for the operation of hotel business from the relevant authorities by the end of July 2018.”
Last July, Bloomberg News reported that the 13 Holdings had missed a hotel opening deadline condition on a HKD3 billion loan from Bank of Communications Co Ltd. In its June filing, the company stated, “Up to the date of this announcement, the group has not been rejected on the application for extension. The bank has frequent communications with the group on the progress of hotel opening preparation and also shows the positive support on the group. Therefore, the directors of the company do not expect the application of further extension will be withheld by the relevant bank.”
On June 20, GGRAsia reported that the 13 had to “apply for reinspection” by the MGTO due to “unfinished works.”
In a February 25 filing, the firm said the casino at The 13 Hotel might only open by March 31, 2019, along with some shops at the complex.
