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Bloomberg
13 Holdings Ltd. missed a Monday deadline to open its luxury hotel in Macau, a condition of a HK$3 billion ($384 million) loan from Bank of Communications Co. for the gaming project just off the Cotai strip, according to people familiar with the matter.
The $1.6 billion development, started by 13 Holdings co-chairman Stephen Hung, formerly co-head of Asia investment banking at Merrill Lynch, now aims to open before the end of the year, said the people, asking not to be identified.
Set to feature 200 villas with furniture evocative of the French Baroque period, marble Roman baths and 24-hour butler service, the project was planned before China’s crackdown on corruption scared VIPs away and sent casino revenue into a slump for almost three years.
A spokeswoman for 13 Holdings said the company has obtained the occupation permit from Macau’s government, is currently in the process of obtaining necessary licenses for the pre-opening and operational phase, and is in the final stages of completion of the property known as The 13 Hotel.
Shares dropped as much as 2.9 percent on Monday afternoon trading. The company has lost more than half of its market value this year.
13 Holdings has raised $1.2 billion for the project, according to exchange filings. Total budget for the development is $1.6 billion, meaning $400 million is needed to finish construction of the hotel, and pay financing fees as well as costs associated with a casino, according to people with knowledge of the matter.