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Harrah's Smart Investment in Planet Hollywood Resort

Posted on September 16, 2009 by Jack Potts There have been 0 comments

planet hollywood casino

Harrah’s Entertainment is setting up to buy some of Planet Hollywood Resort’s debt. This puts Harrah’s in a position to potentially takeover the financially troubled resort in the future if they fall into worse times. Harrah’s reportedly has purchased some of the $860 million debt that Planet Hollywood’s has leveraged against the property. This is a clever move by Harrah’s because it’s a way to gain potential ownership of the Planet Hollywood Resort and Casino. If possession is not what Harrah’s is looking for then it could just turn out to be a smart investment.

Planet Hollywood Resort expressed concern that they may not be able to fund their commitments that include monthly payments on its debt. Planet Hollywood Resort, which posted a net loss of $13.6 million in the second quarter ended June is in some definite financial trouble. The economic downturn in 2009 has taken its toll on the Planet Hollywood Resort and Casino.

Planet Hollywood Resort property on the Strip was previously known as the Aladdin. The Planet Hollywood Resort is owned by ObBiz, which is a partnership between Robert Earl and private equity firm, Bay Harbour Management. The hotel and food and beverage operations are managed by Starwood Hotels & Resorts Worldwide, who also holds a minority share in the property. The resort and casino is on the first of three one-year extensions available on the $860 million loan, which was scheduled to mature December last year.

Harrah’s is owned by Hamlet Holdings, which made up of Apollo Management and Texas Pacific Group. It is a possibility that Harrah’s could acquire the property, giving the gaming giant an impressive amount property in Las Vegas. Some of the casino properties already owned by Harrah’s include Caesars Palace, Bally’s, Flamingo, Imperial Palace, Paris Las Vegas, and the Rio Hotel and Casino.

This post was posted in Vegas News