LAS VEGAS— Aladdin Gaming is actively seeking buyers for the bankrupt Strip mega-resort in a process that could find as many as 20 possible suitors, according to the Las Vegas Review-Journal. Buyers could include Stratosphere-owner Carl Icahn, Silverton-owner Ed Roski Jr., and a potential joint venture involving former Caesars Palace owner Starwood Hotels & Resorts, according to the report. Aladdin Gaming has reportedly hired KPMG as its financial adviser to circulate detailed information to potential buyers about the mega-resorts income statements and daily operating results. Aladdin Gaming lawyers last Friday submitted a 25-page proposal to U.S. Bankruptcy Court, laying out a sale process. The document accounts for the identification of qualified buyers, the deposit of escrow money and the receipt of higher offers. A timetable has not been set for the sales completion, although an April 2 court hearing has been scheduled to consider Fridays court filing. Past bankruptcy filings for the Riviera, Stratosphere, Four Queens and Fitzgeralds each took 18 to 24 months to complete, with any deal awaiting the approval of a bankruptcy judge and Nevada gaming regulators, said the Las Vegas Review-Journal. The $1.05 billion Aladdin since it opened a few year ago. Plagued by a a limited operating capital, a questionable design, a limited customer database, the recession-blighted economy and competition from multiproperty companies, the 18-month-old Aladdin has been operating under Chapter 11 bankruptcy protection since September, said the report. Deutsche Banc Alex. Brown casino industry analyst Andrew Zarnett said the Aladdin could sell for $400 million to $450 million, or about six to seven times projected annual cash flow of $60 million. The typical Strip gaming property sells for as much as eight times yearly cash flow. “I believe there will be more intense interest in this property because its a Strip property,” Zarnett said, noting that for $400 million it could become a lucrative investment. KPMG said that the megaresorts results have improved since the post-Sept. 11 travel plunge that saw the Aladdins daily hotel occupancy rate dip to as low as 40%. The occupancy rate for the Aladdins 2,567-room hotel is 90% for February with an average nightly room charge of $111, which is down about $6 from last years figure, said the report. Occupancy is expected to climb to 93% in March and 96% in April with an average nightly charge of $118. The occupancy rates are expected to be down two percentage points from March of last year and one percentage point from April 2001s total. — Las Vegas Review-Journal
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