The future of Macau’s THE 13 hotel faces increased uncertainty as its hotel license expired on New Year’s Eve, according to information from the Macao Government Tourism Office (MGTO). Questions loom over the potential renewal of the license as the property’s operating entity, The 13 Hotel Management Ltd, has not disclosed whether an application for renewal has been submitted. The expiration of the license adds to the challenges faced by the ill-fated hotel, which was declared bankrupt in February 2023.
License Expiry and Renewal Ambiguity:
The hotel license for THE 13 expired on New Year’s Eve, with no clear indication of whether The 13 Hotel Management Ltd has sought renewal. In compliance with Macau’s hotel operation laws, holders are required to apply for license renewal at the end of each term. Without a renewal application, the license is subject to cancellation.
Ongoing Financial Turmoil:
The expiration of the license compounds the financial difficulties faced by THE 13. The property’s owners have been actively seeking a buyer, and in February 2023, Macau’s Court of First Instance declared THE 13 bankrupt. Parent company South Shore Holdings, under pressure from lenders, applied for voluntary liquidation of its subsidiary, New Concordia Hotel Limited, which owns THE 13 Hotel.
Challenges Since Inception:
Conceived as an ultra-luxury hotel targeting Macau’s VIP gaming segment, THE 13 faced a series of setbacks from funding and construction delays. When it opened in September 2018, it lacked gaming facilities and had several unfinished rooms, resulting in a staggering cost of US$1.6 billion.
South Shore Holdings Insolvency:
In October 2021, South Shore Holdings ceased operations and declared insolvency after a lender demanded payment of HK$3.28 billion (US$423 million) in outstanding loans and interest. The company was subsequently delisted from the Hong Kong Exchange in February 2023.
Leadership Challenges:
Long-time Chairman Peter Coker Jr, a key figure in THE 13’s history, stepped down in October 2022. In January 2023, he was arrested in Thailand after being charged by the US Department of Justice with stock market manipulation.
THE 13 Macau hotel finds itself at a critical juncture with the expiration of its hotel license and ongoing financial turmoil. The uncertainties surrounding the potential renewal of the license, coupled with the bankruptcy declaration and insolvency of the parent company, paint a challenging landscape for the once-ambitious luxury hotel. The saga of THE 13 serves as a cautionary tale in the competitive and dynamic landscape of Macau’s hospitality and gaming industry.