How many Rolls-Royce cars can you buy for $20m? One Chinese businessman knows the answer.
In the biggest ever single order, Stephen Hung, the flamboyant Hong Kong entrepreneur, has ordered 30 bespoke Rolls-Royce Phantoms to ferry round guests at his new Macau gaming complex - dubbed the world's most luxurious and extravagant hotel and casino.
It is perfectly in-keeping with Mr Hung’s Louis XIII project, where the penthouse suite will cost $130,000 a night. Two of the fleet from the quintessential British motor company will be the most expensive Phantoms ever commissioned, thought to be worth about $1m each.
“Louis XIII and Rolls-Royce Motor Cars share the same philosophy: to deliver the perfect experience to the world’s most discerning customers,” said Mr Hung, chairman of Hong Kong-listed Louis XIII, after signing the deal in a ceremony at Rolls-Royce’s Goodwood headquarters.
Mr Hung, who last year told Hong Kong Tatler he had designed his home without wood “because wood is too common”, has at least four Rolls-Royces of his own. His wife, Deborah Valdez-Hung, recently took delivery of her own, candy pink model - number plate DEBORAH - as a Valentine’s gift from Mr Hung, since when it has become a familiar sight around the city.
The Phantom - beloved of footballers and rappers - is considered the epitome of British engineering excellence, as well as a symbol of personal status. Measuring 6m in length and boasting a V12 engine, its instantly recognisable Greek temple grill guarantees passengers a high-profile entrance.
The long wheelbase Phantoms ordered for Louis XIII will feature a custom red bodywork, black leather interior with detailing that echoes the lobby floor of the hotel and bespoke clocks by Graff. Rolls-Royce said it would train the hotel’s chauffeurs in “appropriate driving and handling of the unique vehicles”.
Mr Hung’s order reflects the scale of the former banker’s ambitions for the Cotai Strip complex, which is due to open in 2016.
An influx of mainland Chinese gamblers and tourists has powered Macau above Switzerland as the fourth-richest territory per person, according to the World Bank.
Since the Chinese outpost scrapped a monopoly gaming concession in 2002, the former Portuguese colony has been transformed into a haven for casino operators and gamblers alike. Shares in groups such as Stanley Ho’s SJM and Sheldon Adelson’s Sands China have soared in recent years, though there are signs Macau’s gaming revenues - seven times those of Las Vegas in 2013, at $45bn - may be stalling.
Rolls-Royce, now under the ownership of BMW, has found success as demand for luxury cars has grown worldwide. In July the company said it had sold almost 2,000 cars in the first six months of 2014, up from 1,475 in the same period a year ago. Nine out of every 10 Rolls-Royce cars are sold outside the UK.
Louis XIII said it would pay Rolls-Royce $2m this month by way of deposit, and a further $3m by the end of December. The remaining $15m will be paid on delivery, expected in the first half of 2016. Customers ordering a Phantom can face a wait of up to one year before going behind the wheel, although delivery times can be shorter.
Rolls-Royce’s next biggest contract is with the Peninsular Hotel in Hong Kong, which has a fleet of about 10 cars.
The standard Phantom has an on-the-road price of €345,000, with the extended wheelbase option taken by Mr Hung worth more than €400,000. However, the vast majority of cars that roll out of Rolls-Royce’s Goodwood factory are customised in some way, adding to the price tag.
(c) 2014 The Financial Times Ltd.