New owner releases plan to remodel Aladdin into Planet (2005 thread) Hollywood

LAS VEGAS (AP) — A new owner of the Aladdin hotel-casino released plans Thursday to remodel the Las Vegas Strip property with a futuristic Planet Hollywood theme by the end of next year.
The property's Middle Eastern elements will be replaced with a sweeping modern design, said Robert Earl, chief executive of Planet Hollywood International and partner with resort owner OpBiz LLC.

"We're going to bring Hollywood to Vegas, and we're going to have a must-see attraction," said Earl, adding the redesign could cost up to $140 million.

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The plan will reshape entrances from the Strip and the hotel's Desert Passage shopping center, presenting what Earl characterized as a "dynamic and electrifying look."

"The old Aladdin was a total screw-up," he said by telephone Thursday from Mexico City. "One of the biggest issues was access. The whole facade was just impossible to enter. We're rectifying that with a pedestrian plaza so it is an easy place to walk."

Work is due to start next month and be completed by the end of 2006. The casino and hotel will remain open while work focuses first on the casino, registration area, shops, and the addition of a race and sports book.

As part of a previously announced partnership with Clear Channel Entertainment, the 7,000-seat Theatre for the Performing Arts will get a face-lift, and work has begun on a new 1,500 seat showroom.

Orlando-based Westgate Resorts also is building a 52-story timeshare tower adjacent to the property that will cost $400 million. The first of 1,000 condominiums and hotel suites are expected to open by the end of 2007, Earl said.

The $1.4 billion Aladdin opened in August 2000 and filed for Chapter 11 protection about a year later.

Earl is a partner in the $637 million takeover and renaming project with OpBiz members Bay Harbour Management of New York and Starwood Hotels & Resorts.

Planet Hollywood is so 1992.

Went there one time and saw no race book; goodbye! Good to see they're going to rectify that.

Belch One said:

Went there one time and saw no race book; goodbye! Good to see they're going to rectify that.

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but they will probably take the CHEAP way out and have the book be a "Leroy's" property which is awful for the players

The Aladdin is easily my least-favorite strip casino. What a dump! Lousy casino floor, crappy environment, over-all piss poor set up. It was due for a change.

Bad business model, but nice facility. Really on paper should be a good business, but the previous managers had no clue. People need to realize casinos make their money these days by offering shopping, good entertainment, nightclubs, and quality rooms. This place has all that. A boutique style casino can be sufficient, hardly anyone gambling these days. Mandalay Bay makes shockingly little from its casino offerings compared to everything else.

All that being said, the Aladdin people let the shopping get out of their control and it has turned out to being almost like two operations, the hotel/casino and the shopping/restaurants/nightclubs. With it set up that way they don't generate buzz or cross traffic. Sure it may help bring more people in the door to set up the front door better, but Earl better figure out a lot more than what I think he knows. He needs to create cachet out of the place to take advantage of such prime real estate, but I think he is just working to draw in mass market. Big mistake, but who knows maybe Planet Hollywood has a second life as a brand and casino.

http://www.lasvegassun.com/news/2009/nov/16/planet-hollywoods-financial-outlook-worsens/
Planet Hollywood’s financial outlook worsens

Resort says lenders control its finances as property reports $17.5 million loss


<!-- END .story-header --> Justin M. Bowen
The Planet Hollywood resort on the Las Vegas Strip.

<!-- END #leadPhoto -->By <CITE>Steve Green</CITE> (contact)
Monday, Nov. 16, 2009 | 2:42 p.m.


The owner of the 2,518-room Planet Hollywood hotel-casino on Monday reported another quarterly loss and disclosed that its lenders are now in control of its finances.
BH/RE LLC, the Las Vegas Strip resort's parent company, said that for the quarter ended Sept. 30 it lost $17.5 million vs. a loss of $10.7 million in the year-ago quarter.
Revenue fell 20.6 percent, from $69 million to $55 million, as Planet Hollywood's casino accommodated fewer players and the hotel had to lower room rates to stay competitive as the recession reduced visitation to Las Vegas.
Even as the average daily room rate fell year-over-year from $123 to $99, hotel occupancy decreased 3.9 percentage points to 91.1 percent.
Compounding the problem, 14,748 more room nights were available during the 2009 quarter because of a room renovation project that was under way in the 2008 quarter.
With Harrah's Entertainment Inc. buying a reported $140 million of its debt during the quarter, raising speculation that Harrah's is interested in the property, Planet Hollywood reiterated that it has defaulted on its debt obligations totaling $870 million.
The default occurred on Sept. 9 when Planet Hollywood did not have sufficient cash available to make interest and reserve payments due that day on an $860 million mortgage, which has been syndicated and is serviced by KeyBank Real Estate Capital.
Because of the default, the resort and the lending group entered into a "protective advance agreement" that outlines conditions for the lenders to make cash advances to the resort so it can continue operating.
"The company is continuing discussions with the lender in this regard," BH/RE said Monday in its quarterly financial report.
"Under the terms of the loan agreement, all cash receipts are deposited into a cash management account under lender control which is used to fund reserves and operating expenses. In accordance with the terms of the protective advance agreement, operating funds are disbursed to the company at the lender's sole discretion," BH/RE said.
With entities controlling Planet Hollywood restricted from filing for bankruptcy, the company said it's "involved in discussions with the lender that could result in a foreclosure on the property and a transfer of the deed, a transfer of a portion of some or all of the current equity of the company or a modification to the loan."
"There can be no assurance that an agreement will be reached with the lender, that the lender will not exercise its rights to obtain ownership of the Planet Hollywood Resort, will agree to modify the loan agreement or will make adequate funds available under the protective advance agreement," BH/RE said.
With CityCenter set to open across the street, Planet Hollywood did not offer an optimistic outlook for the rest of the year.
"We believe that third quarter 2009 operating results were negatively impacted by the current market conditions and that we will continue to experience lower than historical hotel occupancy, room rates and casino volumes throughout 2009. As a result, we have increasingly focused on efficiency initiatives to control expenses and improve performance. We are continually reviewing the costs and marketing opportunities to ensure maximum operating performance in the face of the current economic conditions," the resort said.

Had a nice time there at the 07 bash. Nice rooms

patswin said:

Had a nice time there at the 07 bash. Nice rooms

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Agree. Great location.

Ever since Elvis was married there, the place has been cursed.

FairWarning said:

Agree. Great location.

Click to expand...

I'll third that opinion. It's tough to make a buck these days.

I loved PH. That was my favorite of the 4 bashes I went to.

Great rooms, Miracle mile mall, located on the strip, go go girls, heart bar, etc. What's not to like?

even though i had much more luck at the nugget, i still liked the planet best

agree class joint, but I prefer downtown.

Nice place, but the parking sucks. You have to walk thru the mile long mall from the parking lot to get to hotel. Not surprised people don't return after that nightmare.

GOOD DEALS ON ROOMS:
http://www.lasvegassun.com/blogs/co...anet-hollywood-offers-60-rooms-10-rooms-time/

Planet Hollywood offers $60 rooms — 10 rooms at a time

By <CITE>Amanda Finnegan</CITE> · November 16, 2009 · 12:10 PM
Planet Hollywood has rolled out a new promotion for its Twitter followers and Facebook friends that makes rooms at the Strip resort cheaper than many of Las Vegas’ budget hotels.
The hotel-casino’s Phanatic Pass offers 10 nights for $599, making each night’s stay less than $60. But the 10-night stay doesn’t need to be done all at once. The offer gives visitors the option of being flexible.
The nights need to be used between Nov. 15 and March 15, 2010.
The Phanatic Pass has no blackout dates so guests can use the deal during big weekends including New Year’s, the Super Bowl and upcoming events like Miss America and the Dave Matthews Band concert.
The deal includes a standard room at Planet Hollywood with views of the Bellagio fountains and a complimentary bottle of liquor of the guest's choice. The Phanatic Pass lets visitors bypass resort fees but a 12 percent tax does apply.

It's almost like they are selling time shares. I am guessing they put those who buy the discount in the basement or broom closet with a video feed for a view.

http://www.kxnt.com/Harrah-s-Seeks-to-Acquire-Planet-Hollywood/5783931

<TABLE class=Box_58286153_Tb cellSpacing=0 cellPadding=0 width="98%" border=0><TBODY><TR align=left><TD class=Box_58286153_Td width="100%">Posted: Monday, 30 November 2009 4:25PM

Harrah's Seeks to Acquire Planet Hollywood



</TD></TR><TR align=left><TD class=Box_58286153_Td width="100%">Harrah's Entertainment has filed paperwork with the Nevada Gaming Control Board to acquire the Planet Hollywood resort on the Las Vegas Strip. Harrah's has reportedly been in quiet negotiations for several weeks to take over the property, and its estimated $860 million in debt. There's no timetable for gaming regulators to respond to the application. If Harrah's does gain control of the Planet Hollywood, it would own every property on the east side of the Strip, from Harmon to north of Flamingo.
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