The failure of Hung’s “13”
The 13 Bedrooms which so far has had no customers
Hong Kong-born billionaire Stephen Hung made a huge statement when he announced the development of what he said would be “the world’s most luxurious casino resort” in Macau back in 2012. It was to be called Louis XIII but has now changed its name to just 13.
However with the passing of the five years the resort is still not open and does not even hold a casino license.
Huge news was made when Hung purchased a fleet of custom-built gold and diamond-sprinkled Rolls-Royce Phantoms for some $20 million to ferry their high end customers around Macau.
The company 13 Holdings Limited have been the victim of mainland China’s crack down on its residents going to Macau to spend small fortunes. When China President Xi Jinping announced in 2014 that the government was cracking down on corruption high end gamblers from China kept away from Macau and many still do today. Where other casinos in Macau have adapted and survived the decline in VIP trade The 13 is in limbo.
13 Holdings Limited, which is listed on the Hong Kong Stock Exchange only recently warned that with the cost of construction and delays in opening has brought the subject of whether the business can continue as a going concern.
Currently it has more debt than assets and Chairman of the company Hung the flamboyant owner must be thinking of giving in. The market in Macau many observers believe cannot sustain a business that just focuses on high end customers, they have shrunk over the past few years and has no sign of ever growing again, leaving The 13 in the position of having a business model that no longer exists.
