The 13 Hotel Macau, a Financial Disaster That Cost $1.4 Billion, Sells for $50.1 Million

Although the buyer has not yet been made public, the 13 Hotel in Macau has a new owner.

Numerous media outlets, including Macau's official broadcaster TDM News, have reported that The 13's most recent auction round, which started on May 19, ended with the sale of the bankrupt and hardly operational 199-room hotel.  The contract was signed by international real estate broker Jones Lang LaSalle and is still pending government approval.

According to TDM, the opulent hotel only brought in HK$400 million (US$50.1 million).  That represents a significant reduction from the offering price of HK$2.4 billion (US$307 million).  The 13 was first offered for sale in March 2024.

Although several resort services, including its two restaurants, remained closed, the 13 reopened in July of last year in a limited capacity.  Guests must call the hotel to make a reservation because the website does not enable online booking.

A financial catastrophe

The Special Administrative Region (SAR) experienced significant transformation and economic growth following Macau's 1999 restoration to Chinese sovereignty from Portugal.  Gaming revenue increased from $1.9 billion in 1999 to a one-year high of $45 billion in 2013, driven by Las Vegas Sands, which transformed the Cotai Strip into a posh resort and gambling haven.

Stephen Hung, who inherited a large portion of his money but also had a prosperous business career in banking, oil, and coal, proposed the concept for an ultra-luxury, ultra-VIP-focused boutique casino hotel approximately one mile south of the Cotai Strip three years before to the record year.  The flamboyant Hong Kong tycoon, whose estimated net worth at the time was $1 billion, declared his intention to construct the world's most expensive hotel.

In reference to Louis XIII's extravagant preferences, Hung, who most recently featured on Netflix's "Bling Empire," called the production The 13.  The development was spearheaded by Hung's South Shore Holdings, which at first had no trouble luring financiers and investors to the project.

To carry The 13's affluent guests across town, Hung spent $20 million on 30 customized Rolls-Royce Phantoms.  In the history of the car company, it was the biggest single order.

An order from Beijing altered everything as the hotel received the Rolls-Royces. 

Hung Out to Dry

China's President Xi Jinping concluded that the substantial outflow of funds from the mainland through the SAR, a tax haven, posed national security threats in 2013, when Macau casinos recorded record gaming revenues.  Xi gave the Macau SAR Government instructions to examine VIP travel companies and junket groups, which were primarily in charge of maintaining the Cotai Strip's private high roller rooms occupied.

Alvin Chau, the former Suncity CEO, was arrested as a result of the crackdown and successfully prosecuted for planning gambling offenses and encouraging gambling.  Last October, he received an 18-year prison sentence.

As soon as possible, Suncity's rivals left Macau for more hospitable markets across Asia.  In 2019 and 2023, gross gaming revenue fell to $36 billion and $22.7 billion, respectively.  Last year, the market bounced back to $28.3 billion.

Investors departed The 13 when fewer high rollers arrived in Macau.  In order to finish development, Hung spent a large portion of his fortune, but company South Shore Holdings failed before it could open.  The Phantoms were sold for $125,300 each, which is roughly $541K less than what Hung originally spent.

According to current rumors, Hung may be personally insolvent after losing the majority of his money through The 13. 

Future Hotel

It is unknown what the buyer of The 13 intends to do with the property.  Despite negative feedback from recent visitors, the Macau Special Administrative Region government continues to preserve its five-star rating.

"The building looks nice, but the place feels closed down,” said one Google review.

“Was waiting for my Rolls-Royce pickup from the ferry terminal but got picked up in a Toyota,” said another.