Aladdin, Clear Channel join forces

Adam Goldman

Tuesday, Feb. 8, 2005 | 11 a.m.

In a deal that could pave the way for two new major shows to come to Las Vegas, Clear Channel Entertainment is teaming up with the Aladdin to manage the hotel-casino's theater and a planned showroom.

The agreement gives Clear Channel Entertainment, one of the world's leading producers of live entertainment, a sizable venue in which to lure top-notch performers, headliners and possibly a Broadway show. The company has a deal to bring "Phantom of the Opera" to another Strip resort in 2006.

The partnership should also help revive the once bankrupt Aladdin that was bought last year by a group of investors led by Robert Earl, Planet Hollywood's chief executive.

"This is a validation of our project from one of the big boys putting in their money," Earl told the Associated Press on Monday. "Expect some more announcements from me in the future."

Earl declined to say what shows might land at the Aladdin but said they would have national recognition. They could, he added, involve a Broadway show and a major headliner.

"It will be some combination like that," he said.

To accommodate nightly performances, the casino's 7,000-seat theater will be modernized and a showroom will be built that could hold up to 1,500 people.

The entertainment component of the casino is part of Earl's plan to give the 2,567-room Aladdin a larger presence among the hotel-casinos that compete along Las Vegas Boulevard. Most every major Strip property either boasts a big-name show or is adding one.

"We intend to be a serious player on the Strip," he said.

The Aladdin is located across from the Bellagio and next to Paris Las Vegas.

Along with his partners, Bay Harbour Management of New York and Starwood Hotels & Resorts, Earl purchased the property out of bankruptcy for about $637 million.

Earl intends to rename it Planet Hollywood Hotel & Casino once upgrades and renovations are completed in the second half of 2006.

For Clear Channel Entertainment, the Aladdin deal gives the company an expanded presence in a city that has become a major entertainment destination.

"Certainly Las Vegas is the second most important live entertainment market in North America and creeping up on New York," said Scott Zeiger, chief executive of the company's theatrical division

Clear Channel Entertainment already is producing a 90-minute, $35 million version of the Tony Award-winning musical "Phantom of the Opera" that's set to open at The Venetian hotel-casino in about a year.

Under the terms of the Aladdin agreement, Clear Channel Entertainment will be responsible for funding, developing, programming and operating the showroom and theater.

Zeiger said the total cost of the venture could reach into the tens of the millions once the shows are signed. He estimated construction costs at $30 million.

Zeiger said any opportunity to get a bigger slice of the coveted Las Vegas market was rare, and his company couldn't pass up the offer.

"The stars lined up beautifully. We almost couldn't say no."