The 13 Hotel was billed as the most opulent hotel in the world, but its trappings of wealth and aristocracy failed to bring in the money that the developer desired after a change in the Special Administrative Region’s direction from China’s mainland took effect.
Costly Education
People who inherit most of their wealth never quite fully appreciate the effort it took to amass that fortune. However, perhaps this most recent case of tumbling real estate values, set against the backdrop of a shifting betting industry in Macau, will be an eye-opening experience for the developer, Stephen Hung.
Hung said at the time, ‘Thirteen is my lucky number, and the new name and logo fit perfectly with my vision. There is a hint of tradition while also suggesting a chic and fun edginess.”
Never one to shy away from abject opulence or the camera, Hung was recently featured in Netflix’s “Bling Empire” and named his $1.2 billion hotel The 13 after King Louis XIII’s extravagant tastes. The new venture cost Hung an additional $20 million, purchasing 30 Rolls-Royce Phantoms alone, used as the elite’s Uber ride to shuttle them around town and make airport runs.
From Lavish Vision to Auction Block
The gaming scene in Macau reached a fever pitch of $45 billion in 2013, but shortly before that, Hung had an idea for a luxury hotel to cater to the rich and famous who frequented the East’s gambling mecca. The 199-room hotel would be replete with every amenity imaginable, and the billionaire owner’s South Shore Holdings was responsible for seeing its completion.
Originally listed for HK$2.4 billion (US$307 million), potential sales through public auctions have fallen through several times. However, it appears there is now a buyer for the sharply reduced amount of HK$400 million (US$50.1 million). The hotel had been partially reopened to less than flattering reviews, and the two restaurants within it remain closed. Due to a non-disclosure agreement (NDA), the buyer was not disclosed.
What Went Wrong?
A change in the direction of the gaming enclave took effect when China became concerned with the security risks posed by all that money flowing toward one tiny spot. The gambling junkets that ferried high rollers from the mainland to Macau were suddenly subject to seizure, and the industry that had propped up Macau’s reputation as being the Las Vegas of the East suddenly took a hit.
Junket owners were arrested, and with mainland China putting an emphasis on culture over excessive gaming, the hotels had to comply, and revenue fell from a high of $45 billion in 2013 to $22.7 billion in 2023. Macau’s gaming market partially recovered to $28.3 billion last year, but The 13 remains a hotel in need of reservations. Oh, and if you try to book online, sorry, a telephone call must be made to book your stay.
Ultimately, South Shore Holdings went bankrupt, and the Rolls-Royce Phantoms were sold for $125,000 apiece, a 70% reduction over what was paid. Hung lost much of his personal fortune as well, all because of the whims of a nation whose disdain for capitalism cost billions in gaming revenue and the dreams of one man.
