The 13 Macau Sells 24 Rolls-Royce Phantoms at Deep Discount, Troubled Resort Still Planning Casino
Posted on: June 30, 2019, 01:00h.
Last updated on: June 28, 2019, 12:04h.
The 13 Macau, the non-gaming resort that opened last September south of the Cotai Strip, has sold 24 of its 30 cherished Rolls-Royce Phantoms at a deep discount in order to pay down a small sliver of its considerable debt.
In filings with the Hong Kong Stock Exchange, parent company South Shore Holdings said the two dozen ultra-luxury vehicles went for HK$24 million ($3.07 million). That comes out to $125,291 per Phantom.
The 13 was envisioned by flamboyant Hong Kong billionaire Stephen Hung. The Rolls-Royces were to serve as shuttles for the property’s VIP guests. But the fiscally troubled development located more than a mile south of The Parisian – the southernmost end of the Cotai Strip – still doesn’t have a casino floor, which is considered a necessity to attract the premium guests The 13 was designed with in mind.
Rolls-Royce Flash Sale
Hung announced his $1.6 billion casino resort in the Coloane Village in 2013. Investors flocked to buy shares in The 13 Holdings, which was later named South Shore Holdings following his departure in early 2018.
The idea of owning a part of a Macau casino enticed many. But 2013 marked the year before China President Xi Jinping began cracking down on VIP junket groups that cater to the mainland’s wealthiest citizens and bring them to the casino hub.
As a result, gross gaming revenue plunged from $45 billion in 2013 to $27.9 billion in 2016 – a 38 percent drop. Hung pressed on despite shareholders fleeing. The stock would essentially became worthless.
Hung announced in 2014 the purchase of 30 Rolls-Royce Phantoms – the automobile maker’s largest single order in its history – at a cost of $20 million. This week’s announcement that 24 were sold for just $3 million represents a $541,000 loss per vehicle for a total discount of around $12.9 million.
The 13 is a 201-room all-villa resort, with each room costing $8 million to construct. By comparison, MGM Cotai spent $2.42 million per occupancy, and Wynn Palace $2.58 million.
The 13 Future
South Shore Holdings confirmed earlier this year that an unidentified shareholder had invested $191 million into the resort, which would be used to pay down debt. Financial filings show that The 13 has liabilities totaling $217.5 million.
The 13 is finally taking reservations online – something that wasn’t occurring in March during Casino.org’s coverage on the property. Rooms are going for around $450 per night, which is far higher than other five-star Cotai Strip properties.
For example, a two-night stay from July 10 through July 12 (Wednesday-Friday), a standard villa at The 13 will cost $998. The same dates at The Venetian Macau will cost just $488.
South Shore says it still plans to incorporate a casino into the resort. However, GGRAsia says the Macau government has revealed that it has yet to receive a gaming license application for the property.
Hotels such as The 13 must partner with one of Macau’s six licensed casino operators and become a satellite venue.