Gaming Control Board Eyes OK For Aladdin’s New Game Plan

LAS VEGAS— There are big plans ahead for the Aladdin hotel-casino, which is being bought out of bankruptcy court in a $637 million deal. According to a report in Sun Capital, the property will be renamed Planet Hollywood with a Sheraton hotel, a 1,300-seat theater and 500 timeshare units on 4.6 acres at the rear of the hotel. The buyers, who intend to spend $100 million on improvements, include Doug Teitelbaum, managing principal for Bay Harbour, a company that invests in distressed companies; Robert Earl, co-founder of Planet Hollywood; and Starwood Hotels and Resorts Worldwide, which owns the Sheraton brand, said the report. While the state Gaming Control Board recommended approval for the group, board members expressed concern since Planet Hollywood has been in bankruptcy two times in the past four years and the Aladdin is just coming out of bankruptcy court. Of the $637 million in the deal, the partners are putting up $40 million, according to the report, which noted figures presented to the board by company officials showed the new owners expect $276 million in revenue with cash flow of $43.1 million the first year, growing to $434 million in revenue in year five with $121.4 million in cash flow. The deal is expected to close September 1 after approval from the state Gaming Commission, which will meet August 26. SOURCE: Sun Capital