South Shore Holdings sees loss grow to HK$507 million
South Shore Holdings Ltd has reported a loss attributable to owners of the company of HK$506.7 million in the six months to 30 September 2019, an increase of 15% year-on-year thanks largely to increased costs at THE 13 Hotel in Macau.
In its six month earnings report published late Tuesday, South Shore revealed total revenue of HK$5.15 billion for the period, an increase of 16% year-on-year, of which HK$5.13 billion was accrued via the management contracting division of the company’s engineering business, PYE.
Revenue from The 13 totaled just HK$19.6 million with the property currently offering private events and some hotel accommodations, however cost of sales and services on hotel, food & beverage and related services came to HK$231.2 million. According to South Shore’s filing, THE 13 employed 209 people as of 30 September 2019.
Originally envisioned as an uber-luxury casino-hotel, THE 13 has space for 66 gaming tables but recently revealed it has no current plans to apply for a gaming license. Instead, the company earlier this month announce a deal with three Hong Kong-listed firms to sell 50% of its stake in the subsidiary that controls THE 13.
Nevertheless, South Shore said on Tuesday that it has plans to boost revenue at the embattled hotel in the coming months.
“THE 13 Hotel has been focusing on repositioning the business and operational model without gaming since obtaining of the hotel licenses in August 2018,” the company said. “It is now poised to capitalize on its unique ultra-luxurious theme for the establishing of the brand and market penetration with a view to boost occupancy and holding of special events in this financial year.”