Planet Hollywood linked to Aladdin

Tuesday, Nov. 26, 2002 | 11:18 a.m.

Planet Hollywood, the Orlando, Fla.-based restaurant chain founded by Hollywood celebrities in the 1990s, has been linked to a potential deal involving the acquisition of the bankrupt Aladdin hotel-casino on the Las Vegas Strip.

A Wall Street source said a partner would work with Planet Hollywood on the deal and that the restaurant chain would contribute its name and movie memorabilia collection, but no cash.

The source declined to name the partner in the deal.

Representatives of Planet Hollywood and the Aladdin had no comment on the matter. Planet Hollywood is expected to emerge from Chapter 11 bankruptcy protection next month, the second time the company has operated in bankruptcy in four years.

In 1996 Planet Hollywood expressed interest in developing a movie-themed resort on the site of the Desert Inn and a year later, announced that it would move the concept to a site near the Aladdin. In late 1998 the Aladdin pulled out of that deal, fearing that Planet Hollywood would be unable to provide the $41 million investment in a 1,000-room hotel it had promised.

The Wall Street source also said that a previous bid for the Aladdin involving Colony Capital Corp., Pinnacle Entertainment Inc. and the Marriott hotel chain has collapsed. Colony was to provide the financing, Pinnacle the casino expertise and Marriott was to manage the hotel under that plan.