As it was reported recently, The 13 Hotel may be facing big changes in the period to come. The company which owns and operates the massive $1.6 billion-worth The 13 Hotel has recently released its official statement in which it announces the signing of a special business agreement which could potentially see the company offload a massive 60% stake in this luxury facility in exchange for an important consideration which is worth slightly over $153 million.
According to one GGRAsia report released recently, the Hong Kong-based South Shore Holdings Limited company made this revelation via its official Monday filing in which it shares some more details about the agreement. It was released that this latest business arrangement is actually part of the company’s non-binding business deal which South Shore Holdings Limited initially worked out with an unknown associate back in January this year. What we know for sure is that this unknown associate is a major shareholder.
The 13 Hotel Began Welcoming Its First Guests Two Years Ago
South Shore Holdings Limited started welcoming its very first guests to it’s the 13’s two hundred-luxurious rooms two years ago. The company had originally planned to expand this facility by adding a casino to this massive property which is situated on the border between the Cotai Strip and Macau’s Coloane districts.
At the time of its opening, The 13 Hotel was regarded as the most luxurious Macau-based gambling mecca. The facility is located on a massive property and it features twenty-four hours-available service. Each villa located on this property features an impressive marble bath under a stunning Baroque ceiling. Besides this, customers can enjoy all sorts of luxurious, extra services in addition to enjoying remarkable accommodation features.
This hotel styled to look like a stunning French palace built for a staggering cost of around $1.4 billion attracts customers not only from Macau but also from all parts of the world. Even though South Shore Holdings Limited planned on adding a gambling facility to this property, the company never agreed on a business deal with one of six Macau’s casino gaming license holders.
What is even more, this luxurious property also recorded a massive annual revenue loss of around staggering $746 million which is significantly more when compared to the facility’s loss of around $200 million accumulated over the last year. One of the main reasons behind this massive annual revenue loss is due to staggering impairment costs which increased to around $599 million.
Dealing with Massive Debt
As reported by GGRAsia, it seems that trading the company’s shares resumed several days ago following a one-month suspension. During this suspension period, South Shore Holdings Limited used its official filling to reveal that it plans on using proceeds from the sale proposed in order to reduce its total debt. Furthermore, the company also stated that its envisioned business deal may include substantial disposal as well as connected transaction even though the company is yet to sign any definite business agreement.
In its official press release, the company’s officials also revealed that South Shore Holdings Limited is still negotiating with several prospective investors. South Shore Holdings Limited previously named The 13 Holdings Limited used its second official press release to reveal that the company’s latest impairment costs associated with the hotel came mainly as a result of the company abandoning its initial plan to add a casino to the facility.