LAS VEGAS— Aladdin Gaming LLC has agreed to sell its bankrupt Las Vegas casino-hotel to a joint venture involving Planet Hollywoods co-founder and the Starwood hotel chain. The deal calls for the Arabian Nights-themed resort on the Las Vegas Strip to be branded as Planet Hollywood Hotel & Casino. The property will be managed by Starwood through its Sheraton hotel brand. The group is also buying Aladdins 7,000-seat Theatre of Performing Arts. As part of the deal the venture will assume $510 million of Aladdin debt and other liabilities. The group also will invest $90 million in the casino. The 2,567-room Aladdin opened in August 2000 and filed for Chapter 11 protection in September 2001. The deal has to be approved by a bankruptcy judge, who can allow other companies to bid. The deal includes buying the $35 million Northwind Aladdin power plant on Aladdin property that provides the property with hot and cold water and a backup generator. The company agreed to retain all 2,600 employees. Guests can expect a new Hollywood-themed façade and related exterior changes. Starwood, under its Starwood Vacation Ownership division, could also develop 600 time-share units on Aladdin property. The purchase does not include the adjoining Desert Passage Mall, which is owned by Aladdin Bazaar. The price was undisclosed.
