According to the company, the loss over the six-month period that ended on September 30 reached HKD506.7 million ($64.7 million).
Macau.- South Share Holdings Ltd. announced that its signature The 13 Hotel suffered heavier losses over the first half of this fiscal year than what was expected. According to the company, the loss over the six-month period that ended on September 30 reached HKD506.7 million ($64.7 million).
This amount is more than HKD60 million increase over the same period of time from 2018. Since it opened at the end of August 2018, South Shore Holdings reported a net loss of HKD433.63 million for the first period.
The company released a statement that explained the situation. “The internal loss from the hotel operations was amounting to approximately HKD508 million and was mainly due to finance costs for hotel operations, depreciation and amortization charges and other hotel operation costs recorded in the current period.”
One of the biggest problem of The 13 Hotel is its location. Although Macau has six licensed casino operators, none of them has expressed any interest in bringing their tables and slots to the area near, so the occupancy is very low. And it happens: the hotel reported an occupancy rate of only 8%.
“The hotel market in Macau continues to grow steadily, but the overall external economic environment is still posing uncertainty. The U.S.-China trade tension is expected to continue and raise uncertainty on the political and financial risks in the short-term, but it still looks optimistic in the long-term.”, the company added.