Stephen Hung, Hong Kong investment banker, has decided to not pursue his latest Macau hotel project. The project called The 13 is a luxury hotel. Hung handed in his resignation letter just last week from his role as joint chairman and executive director. The 13 Holdings told the Hong Kong exchange that Hung is not part of the company and would not occupy a sit on the company’s committees. The 13 Holdings also stated that another company that Hung owned, Prime Wisdom Group, has agreed on a sale and purchase of 82,5 million shares in The 13 Holdings to a business owned by deputy chairman Tom Lau Ko Yuen.
Hung has stated that there wasn’t discordance with the board of directors and that his resignation was a personal matter and not affiliated with the company. He, also, said that due to the personal nature of his decision, he felt it was not necessary to address it with the shareholders. Hung’s departure comes amid the announcement by The 13 Holdings to delay the opening of the Macau hotel. Initially, the opening date was set for the 31st of March but has been postponed to the end of April.
The Macau Hotel
The hotel was at first named Louis XIII and was designed for the country’s elite class as is reflected in its exorbitant prices. The building of the Macau hotel began at the peak of the VIP’s gambling market withdrawal. The hotel’s first intended launch was supposed to be in 2016 and last year construction was put on hold as the company’s finances were depleted. Last October, the company reported that it needed to acquire more funding to finish the project.
The 13 Holdings still need to get authorization from the Macau authorities to run a VIP casino on the property. If the company does not get the authorization, the VIP’s will have to look for alternatives, which defeats the purpose of building the casino. The 13 Holdings board have admitted that the casino may not be open in April, although, this will not impede the launch of the hotel operations. The company will host a general meeting on the 9th of February for the board of directors.