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| PLANET HOLLYWOOD HOTEL AND CASINO |
6/20/2003 Court confirms Planet Hollywood group as winner to take over the Aladdin (Las Vegas, NV June 20, 2003) Planet Hollywood Hotel and Casino will open soon in Las Vegas, boldly changing the landscape of the Las Vegas Strip. Forty five days after being named the Stalking Horse bidder for the Aladdin Resort and Casino, the Planet Hollywood group has produced the winning bid to purchase the Aladdin. The joint venture partnership purchasing the property includes Robert Earl, founder and CEO of Planet Hollywood International, Inc., Bay Harbour Management LC and Starwood Hotels and Resorts Worldwide, Inc. The Purchase Agreement for the 2,567-room hotel, 114,000 square feet casino and the 7,000-seat Theatre of Performing Arts is $635 million and includes the assumption of debt. New capital investments of $90 million will be used for property renovations and re-themting. "Plans for a Planet Hollywood Hotel and Casino in Las Vegas have been in the works for years," said Robert Earl. "I am thrilled that we have been able to put together the team, and the plan, to make it happen at this incredible location on The Strip. The time is tight, the Planet Hollywood brand is back on the upswing, and there is no better place to start our hotel and casino business than here, today, in Las Vegas." Upon completion of the renovation, the new resort will be known as the "Planet Hollywood Hotel & Casino", a Sheraton Hotel. With a brand new facade on The Strip, improved entryways, and a completely updated dining and entertainment strategy, the Planet Hollywood Hotel and Casino will offer visitors and locals a chance for a real taste of Hollywood. The Casino floor will be entirely renovated as well, giving it a more open and inviting feel all with a distinctly Hollywood theme. The Joint Venture has appointed Mike Mecca to be its President and CEO. Mr. Mecca, formerly the General Manager of the Green Valley Ranch Casino and Spa, joined the group in May. "We are delighted to have such a skilled operator on our team," said Doug Teitelbaum, Principal of Bay Harbour Management LC. "Mike is exactly what we were looking for in a Chief Executive.." Teitelbaum also confirmed that the Joint Venture will retain all existing Aladdin employees. The Hollywood theme will be reflected in the design of new rooms and suites for the hotel. Drawing from Planet Hollywood's extensive memorabilia collection, the largest in the world, the specialty suites will be a completely unique element of the new design. The top floor of the hotel will be the celebrity suites floor, reflecting the lives, and careers of some of our most beloved movie stars. The next floor down is devoted to the movies; specialty suites on this floor will be themed with memorabilia from top grossing films. Plans also call for major headline acts to rotate through the Theatre for Performing Arts. The Theatre will also be home to weekly Hollywood-style movie premieres. Starwood, through its Sheraton brand, will manage the hotel operations only and will not have responsibility for casino operations. Starwood will appoint key management to nm the hotel and will bring its famous global reservation system and award-winning Staiwood Preferred Guest program to the property. The parties also intend for Starwood, through its Starwood Vacation Ownership division, to develop a Westin Vacation Resort of up to 600 units on the property. The purchase will not include the adjoining Desert Passage Mall, which is owned by Aladdin Bazaar, LLC. "We are pleased to be able to return to this important travel market as partner in this venture," said ~atry S. Stemlicht, Chairman and CEO of Starwood Hotels & Resorts. "Las Vegas is a key market for both our group business and our millions of Starwood Preferred Guest frequent traveler members. The asset is extremely well located and though our investment is modest, the opportunity is not. The joint venture is acquiring a major asset at less than 50% of its original cost?' Under the deal, the Aladdin Resort & Casino will continue to operate as the Aladdin for a period of time. Owing that time, the property will make a gradual transition into Planet Hollywood Hotel and Casino, with major renovations to the existing property. Plans call for a true Hollywood grand opening celebration. |
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