LOS ANGELES (CelebrityAccess MediaWire) — Harrah's Entertainment Inc. has filed an application with the Nevada Gaming Control Board to purchase the Planet Hollywood Resort & Casino in Las Vegas.
According to the Wall Street Journal, Harrah's has formed a new subsidiary, PHW Las Vegas LLC as part of a plan to take over the Planet Hollywood Casino. Planet Hollywood, a separate entity from the international restaurant chain, has been struggling financially and last fall defaulted on its commercial mortgage.
Harrah's has been positioning to take over the Casino and last September, they purchased $140 million of Planet Hollywood's $870 million debt from Goldman Sachs for an undisclosed amount. This stake may well give Harrah's enough sway to control the property, the WSJ reported.
Formerly known as the Aladdin, the property was acquired in 2003 by a partnership between Planet Hollywood and Starwood Hotels & Resorts Worldwide and fully re-opened in 2007 after a staged renovation.
The Planet Hollywood property is adjacent to 6 other contiguous Las Vegas casinos owned by Harrah's just north of Planet Hollywood and across the street from the planned $8.5 billion MGM Mirage City Center resort set to open in December, making it a tempting target for a Harrah's takeover.
"This is an attractive proposition because of Planet Hollywood's proximity to our other resorts on the Strip, its high-quality product offering and its strong brand name," Harrah's CEO Gary Loveman told the WSJ. – CelebrityAccess Staff Writers
