The Macau Louis XIII Hotel, formerly built by the South Shore Group and known as the "Louis XIII Hotel", was recently sold to a local investor for 600 million Hong Kong dollars, ending its tumultuous fate. The hotel has 199 rooms, with each room priced at about 3.015 million Hong Kong dollars, far below the original investment expectations.
It is understood that the hotel was previously put up for sale by JLL on behalf of the creditor banks due to the bankruptcy liquidation of its parent company. According to market estimates, the total investment in the Louis XIII Hotel was once as high as 6 billion Hong Kong dollars, and it is now sold for less than one-tenth of the original price, with assets shrinking by more than 90%. Calculated by the total floor area of about 945,000 square feet, the price per square foot is only about 635 Hong Kong dollars.
It is widely rumored that the new buyer is likely to be Lü Qiangguang, a well-known figure in the Macau real estate industry. He is not only the vice president of the Macau Real Estate Business General Association but also a director of the Chinese General Chamber of Commerce and the chairman of the Rio Hotel. The market is full of expectations for his takeover, believing that it is likely to give the hotel a new life.
The Louis XIII Hotel itself has always been the focus of attention, not only because of its luxury positioning but also because it was once a filming location for Miss Hong Kong, which made it famous. At that time, the hotel was developed under the leadership of Hung Wing-tat, whose high-profile style shocked the industry—he once ordered 30 extended Rolls-Royce Phantoms in one go as a welcoming fleet, setting a record for the brand's largest order.
Wong Ka-leung, a senior director at JLL Macau, revealed that the hotel has been successfully sold, and the buyer is full of confidence in the prospects of Macau. JLL has also been appointed as the project handover and subsequent management unit to assist the buyer in advancing the renovation plan. It is reported that the buyer has international real estate operation experience and plans to completely reshape the project in the future, including introducing globally renowned restaurants, hoping to turn it into a new landmark for tourism in Macau.
Looking back at the development history of the Louis XIII Hotel, its starting point originated from the "Shell King" Chen Guoqiang's Bauhinia Construction, which spent 2 billion yuan to buy the land on Cotai Avenue from Hung Wing-tat, planning to invest 6.4 billion yuan to build a six-star hotel and supporting gambling facilities. Hung later became the co-chairman of Bauhinia and renamed the company to Louis XIII, attempting to create a top luxury image to attract high-end gamblers.
The hotel finally opened on August 31, 2018, with a height of 22 floors and a total construction area of nearly 950,000 square feet. The hotel has 199 guest rooms, including 196 luxury rooms ranging from 1,800 to 5,000 square feet, and 3 super villa suites with an area of 10,000 square feet each, with facilities including a spa center, gym, and a parking lot that can accommodate 150 cars and 40 motorcycles.
However, since its opening, the Louis XIII Hotel has never been granted a gambling license, unable to set up a casino, resulting in a long-term low occupancy rate and continuous operating losses. Eventually, the project company initiated voluntary liquidation procedures in 2022.
Today, this landmark hotel, once known for its ultra-luxury positioning, has changed hands at one-tenth of its residual value, not only becoming a footnote in the Macau real estate market but also reflecting the harsh reality of speculative investments. The outside world is watching whether the new buyer can restore its glory or if it is just another round of luxury idling.
