Non-gaming ventures in Macau could receive a significant boost with the addition of The 13 Hotel, according to the property's new owner.
The 13 Hotel, a once-flamboyant establishment envisioned as a playground for billionaires, is set for a transformation under new ownership. The property, which was designed to cater to the highest of VIP rollers, has been sold for HK$600 million (US$76 million) to an entity controlled by Rio Hotel Macau owner Loi Keong Kuong [1].
The sale of The 13 Hotel is seen as playing a significant role in Macau's efforts to diversify its economy. The new ownership believes the property can play a role in this diversification effort, aiming to attract non-gamblers and families by transforming the property to offer a luxury, non-gaming experience [2].
Loi, the new owner of The 13, plans to refurbish the property, introducing renowned restaurants from around the world [3]. This aligns with the ongoing recovery of Macau's tourism industry and the broader trend in Macau's hotel sector, which reflects a shift towards luxury, upscale, family-friendly experiences beyond gaming [4].
Melco Resorts & Entertainment is also part of this shift, renovating its Countdown Hotel at City of Dreams to provide a unique, high-end experience notably appealing to luxury travelers [1]. The redevelopment aims to provide more than gaming entertainment, transforming 330 standard rooms into 150 large luxury suites with an average size exceeding 1,000 square feet.
Macau is also investing heavily in large-scale entertainment and event spaces, complementing hotel refurbishments to draw a broader visitor demographic interested in concerts, shows, and family-friendly activities [4]. Wynn Palace, for example, has an events center that adds to Macau's appeal.
While specific refurbishment details of The 13 Hotel are still under review by Macau tourism authorities, its acquisition and renovation fit into the city’s broader diversification strategy of repurposing hotel assets into high-end, luxury, and family-accessible establishments that attract non-gambling visitors [5].
The 13 Hotel's casino never came to fruition due to Macau's gaming industry downturn and the COVID-19 pandemic. The property's sale price is considerably more than initial reports suggested [6], reflecting the potential of The 13 Hotel in Macau's diversification efforts.
Loi's commitment to the project shows strong confidence in Macau's future. It's worth noting that Loi's Rio Hotel in downtown Macau previously conducted casino gaming through a partnership with Galaxy Entertainment, but this partnership ended with the new concessions [7]. The 13 Hotel, located south of the Cotai Strip, will not include a casino in its future plans, as no firm ever agreed to manage gaming at the property.
Gaming taxes remain the largest revenue stream for the Macau local government, with about 80 cents of every dollar originating on the gaming floors. However, the diversification efforts aim to make Macau more attractive to non-gamblers and families, similar to Las Vegas's overhaul [8].
The refurbishment aims to give The 13 a fresh new look to attract visitors. The long-troubled 13 Hotel was initially built at a cost of $1.4 billion by its original envisioner, flamboyant Hong Kong businessman Stephen Hung, who saw it as a playground for billionaires. His South Shore Holdings went bankrupt, and lenders ultimately took control of the hotel [9].
In conclusion, the transformation of The 13 Hotel is a significant step in Macau's diversification strategy, aiming to attract a broader demographic and offer a luxury, non-gaming experience. The sale price of the hotel is a testament to its potential in this new direction.
- The 13 Hotel, previously designed for high-Rollers, is being transformed under new owner Loi Keong Kuong, who aims to attract non-gamblers and families by offering a luxury, non-gaming experience.
- Loi's entity, the new owner of The 13 Hotel, plans to refurbish the property, introducing renowned restaurants from around the world.
- Macau's tourism industry and hotel sector are reflecting a shift towards luxury, upscale, family-friendly experiences beyond gaming, as seen in Melco Resorts & Entertainment's renovation of its Countdown Hotel at City of Dreams.
- Macau is investing heavily in large-scale entertainment and event spaces to draw a broader visitor demographic, interested in concerts, shows, and family-friendly activities, as demonstrated by Wynn Palace's events center.
- The 13 Hotel's acquisition and renovation fit into Macau’s broader diversification strategy of repurposing hotel assets into high-end, luxury, and family-accessible establishments that attract non-gambling visitors.
- Loi's commitment to The 13 Hotel's refurbishment shows strong confidence in Macau's future, as the hotel, located south of the Cotai Strip, will not include a casino in its future plans.
