In a town built on losers, it seems even Las Vegas locals can’t hide from the recession. After accumulating $870 million in debt in the midst of economic turmoil, Planet Hollywood (PH) has been acquired by Harrah’s Entertainment, a ball in motion since they bought off some of PH’s arrears after defaulting on loans last September.
Harrah’s is no stranger to debt in these hard times, being approved for a $17.7 billion private equity buyout in 2008. The purchase of Planet Hollywood is Harrah’s attempts at a foot in the right direction, buying property unloaded by the downswing while staking their claim on the southern most end of The Strip.
The following was sent via e-mail from Harrah’s CEO Gary Loveman to Harrah’s employees:
“The Planet Hollywood resort is currently in default to its lenders. As a result of our purchase of their debt, we are working on a plan that also would allow Harrah’s to own and manage the property. 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.”
Fresh out of the rumor mill, it has been alleged that after 2010’s World Series of Poker, the events are being moved from the Harrah’s owned Rio to PH. While it has all been speculation up to this point, sources close to the matter are suggesting that the move is an attempt to revitalize the Planet Hollywood brand while promoting vacancies at the Planet Hollywood condos that recently opened.
So to be clear, Harrah’s now owns:
· PH
· Paris
· Bally’s
· Rio
· Flamingo
· Imperial Palace
· Harrah’s
Boys and girls, your word for the day is mo⋅nop⋅o⋅ly, noun. A monopoly is the exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices. All Harrah’s needs now are the title deeds to Park Place and Boardwalk and you won’t be able to move your thimble on The Strip without stepping on their properties.
Harrah’s moved the series to the Rio because of all their properties it had the most parking, largest convention center space and easiest access to the event. I don’t know if any of the other properties can handle the size of the series as it stands now. If fact I think there are very few locations in Vegas that could handle it. The only places that come to mind are the Venetian, Mandalay Bay, LV Convention Center, and maybe the Orleans.