One of the world’s costliest hotels
On January 29, South Shore Holdings Ltd. announced that it has entered into a non-binding memorandum of understanding with an “associate of a substantial shareholder” that may help it pay of some of the debt it has incurred in association with the long trouble-plagued 13 Hotel in Macau.
According to the Macau News Agency, South Shore is hoping for HK$1.5 billion (US$191 million) in capital to reduce the debt. South Shore recorded HK$442.3 million (US$56.4 million) in losses for the six months that ended in September 2018. At that time, total group liabilities came to about HK$7.9 billion (US$1 billion).
The MOU was signed January 4 and expires April 4, 2019, MNA reported.
“Over the term of the MOU, the company stands to receive a total of HK$70 million by way of earnest money payments (to be applied towards a deposit in the event that a formal agreement is entered into, or otherwise to be refunded to the prospective investor in full),” South Shore announced. The company’s shareholders and senior lenders must approve the deal. South Shore says the casino at the 13 is expected to open by March 31 with 66 tables, but no gaming license has been issued yet.
The 13’s history does not inspire confidence. With construction expenses previously estimated at HK$1.3 billion (US$165.6 million), the ultra-luxury resort has been in some phase of development since it was first announced in 2012. Openings were announced for eight different dates in 2017 and 2018 before the hotel side finally debuted in September. Part of the delay has been ascribed to the two-year recession in Macau and the decline of the VIP market, which put a dent in 13’s target demographic.
The 13 has a gross floor area of approximately 87,800 square meters (945,000 square feet) and includes 200 duplex suites and villas and a “royal villa” of about 1,843 square meters (20,000 square feet). The hotel also includes a 100-seat Michelin-starred L’Ambroisie French restaurant.
A 2018 report in the U.K. Telegraph described the 13 as an “ultra-bling casino hotel”—which doesn’t yet have a casino—with “palatial suites” at an overall cost of about £5 million (US$6.5 million) per key. Its “faux-baroque Villa du Comte” features stained glass windows, a Roman bath with room for eight, butler service and complimentary use of a Rolls Royce Phantom.
But with no casino yet onsite, its target clientele may prefer to look elsewhere, where they can both play and stay.
