South Shore Holdings has entered into an agreement to dispose of a 40% interest in luxury Macau hotel THE 13 for HK$750 million.
The agreement, which follows nine months of negotiations, will see the buyer, described as “an associate of a substantial shareholder”, acquire the substantial stake in the South Shore subsidiary that owns THE 13. It is likely they will also enter into a second agreement to acquire another 10%, South Shore said.
THE 13 Hotel opened on 31 August 2018 following a series of delays due to funding problems, but the company recently revealed an average occupancy rate of just 8% through 30 June 2019. A number of rooms also remain unfinished.
Originally envisioned as an uber-luxury casino-hotel, THE 13 has space for 66 gaming tables but has yet to apply for their use under a potential “service agreement” arrangement it previously reached with Macau concessionaire Melco Resorts and Entertainment. Macau’s service agreements allow third party hospitality operators to have gaming in their properties under the license of one of the city’s six gaming licensees.