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Published Friday, Jan. 15, 2010 | 12:12 p.m.
Updated Friday, Jan. 15, 2010 | 12:58 p.m.
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Harrah's Entertainment will take over the management of the Planet Hollywood resort on the Las Vegas Strip at midnight tomorrow as part of the company's longer-range plan to buy the property, Harrah's announced today.
In an internal memo to employees today, Planet Hollywood owner Robert Earl said things would be "business as usual" during the transition, though Harrah's executives from neighboring Bally's and Paris resorts will assume key roles at the property.
Harrah's will take over management from Sheraton, the hotelier that had managed the resort's non-gambling operations.
The casino giant purchased a chunk of Planet Hollywood's $870 million debt around the time the property defaulted on those loans last year.
Harrah's has accumulated more than $19 billion in debt after a 2008 leveraged buyout, a debt burden exacerbated by the recession.
The company has chipped away at its debt while it seeks to buy casinos that may be unloaded on the cheap in the downturn.
Buying Planet Hollywood makes sense for Harrah's, analysts say, because the resort is the southernmost of six major contiguous casinos the company owns to the north of the property, including Paris, Bally's, Flamingo, Imperial Palace and Harrah's.
The resort is also in good shape, relative to some older Harrah's-owned casinos, after a post-bankruptcy renovation that removed the Aladdin theme and reopened it under the Planet Hollywood brand in 2007, analysts say.
Harrah's filed an application with the state Gaming Control Board in November to acquire the property. Harrah's hopes to accomplish that by negotiating with Planet Hollywood's lenders, who have the right to foreclose on the property now that the property can't make its debt payments.
"Harrah's has been in discussions with Planet Hollywood and its lender group regarding a restructuring of the ownership of the resort," Harrah's CEO Gary Loveman said in a statement today.
Harrah's has so far kept its own lenders at bay by buying back the company's debt at a discount and paying down the loans. It also has exchanged outstanding loans for ones with higher rates and longer maturity dates.
As part of the takeover, Marilyn Winn, Las Vegas regional president overseeing Paris and Bally's, will add Planet Hollywood to her list of responsibilities. Steve Opdyke, vice president of hotel operations for Paris and Bally's, will oversee Planet Hollywood hotel operations. Shawn Ritchie, vice president of food and beverage, will oversee the resort's buffet, room service, beverage and banquets and David Hoenemeyer, general manager of Paris and Bally's, also will be involved in food and beverage operations at the neighboring resort.
Comment removed by moderator. Same comment posted on multiple stories.
Buying debt, installing management -- when is this takeover expected to be finalized?
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You bet your bottom dollar it will not be business as usual at this property. Give it a year or two it will be dirty and worn out like the other properties that they aquire. Employee moral will be in the dumps and customer service will be bad because of that.
The economy will bounce back. Government spending created many jobs in the Great Depression, Hoover Dam for example. Some paint that as socialism, others as a wise public investment -- saw a cool site; Balkingpoints ; incredible satellite view of earth
another day, another step downward for las vegas.
less competition = worse product.
that's part of what got vegas into this mess. now we're losing one of the few non-megacorp owned resorts and kind of a cool, different one as well.
As someone who enjoyed visiting and staying at the Planet, I am 100% upset about this. I cannot STAND Harrahs. Now where do I go? How's the Trop looking these days? Why isn't the city or state doing something about 3 or 4 companies owning every casino out there? This is insaine!
"Why isn't the city or state doing something about 3 or 4 companies owning every casino out there?"
Perhaps the term you're seeking is "Cartel"?
A syndication of casinos publicly touted under the ruse of "economies of scale"?
Better than yet another vacant Vegas building isn't it?
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The Department of Justice had to intervene in Las Vegas in the 1950s . . . Maybe it'll have to return. Monopolistic practices are a violation of federal statute and considered conspiracies in the restraint of trade.
Monopolies are illegal, Duopolies are legal or we wouldn't have the stranglehold on Republicans/Democrats on American Politics.
Well this sucks.
You can put lipstick on a pig, but it will always be a pig. This is the BIG PIG-PARADE :(
FAIL
Pay your debts first!! Wish I knew how to keep buying things when I owed everyone in the world! Isnt this called a monopoly??
"Business as usual" means it will continue to lose money. I hope the workers will be able to stay on.
this place has ( had ) a great buffet. that was their marketing piece. that's what they made really great to compete against harrah's.
now harrah's owns it, and they don't need to have a good buffet so just wait...it will be burgers and fries soon.
All you have to do is look at what Harrah's did to the Rio.....they absolutely destroyed it. I like Planet Hollywood, it is a fun, hip place. The only issues were the terrible design, lack of Strip entrance, and difficult parking.
Harrah's will fill it with their slot players and it will lose it's coolness. Sad.
S711
If Steve Wynn married Marilyn Winn, wouldn't that be a Win-Win Marriage?
"Marilyn Winn, Las Vegas regional president overseeing Paris and Bally's"
I have an idea. Since they are catering to the Hollywood Crowd,
why not just outfit the ENTIRE CASINO WITH $100 SLOTS?
Good idea, eh? I bet a $100 token no one has thought about that angle!!
Boomer, Scanedity, PA
This is an outrage! Illegal Monopoly! Whay has the government not intervened in this ? Howard Hughes was stopped in the 60's, Why is Harrahs allowed to get away with this?
it's not a monopoly, folks.
it's bad, and it's not good, but it's not a monopoly.
you can play blackjack at wynn if you want.
These cries of Monopoly are ridiculous......I guess people don't understand the meaning of the word. Doesn't surprise me around here though.
S711
Another reason not fly to Mecca, stay home and game with the tribe.
I advise the employees at Planet Hollywood to start looking for a new job. This company will bleed it dry. All for the CEO and his cronies and nothing for the working families of Nevada. Within a year the place will be a cesspool because nothing but greedy self-serving corporate management runs Harrahs. It is by far the worst gaming corporation ever. Mismanagement, law-breakers, every last one of them.
Hey I would rather go to a Harrah's property than one of the MGM Mirage properties. And the Service at the Planet Hollywood is not the best in the world, and has not been for a long time. Now if they were more into providing a decent hotel instead of timeshare then they would make the money. But no they want in as part of the time share thing.
The answer is to do a major renovation and make a Strip entrance and make access to the parking garage easier. Until they address those 2 issues, this property won't do well. However, Harrah's will make a ton of money on it because they bought it on the cheap.
S711
For the past 5 years I have visited LV 3x a year from Canada and have to say that Harrah's really has lost its charm... I've had some pretty bad service there and I feel overall the Harrah's franchise seems somewheat cheap. Maybe I'm too much in love with the glam persona of the Vegas that I've seen in the movies but selling crap inside and out (food/clothing/trinkets etc), letting IP become a dive (why did they change IP's campy but FUN Luau location from the poolside to the dingy buffet???), pushing the Party Pit idea...who are they trying to market to? Is the plan to make all the properties the same? It seems that Harrah's just lets everything get run-down and staff hate working for them. Maybe I would, too. I'll be at Luxor (pretty much the only place I'll stay now) and I'm looking forward to checking out the new City Centre. I love you Las Vegas, but please put a leash on Harrah's.
Harrahs Sucks!! Hands down. Avoid their properties like the plague. They are the definition of mediocrity and any tourist coming to Vegas can do a lot better by avoiding all of their properties all together.
Let's face it, everyone has their opinion and favorite properties. The rest are bad or something about them is terrible. So what exactly does a visitor look for? My choices are:
Decent Comps based on level of play
Discounts on restaurants/side ameneties
Free entrance to tournaments (slot, poker, etc.)
Staff that makes you feel special
Responsiveness of staff to your needs
Little things
Excitement in the Air (Yes you can tell)
Location central to most things that we want to see
We enjoy The Orleans, Tropicana was our favorite for a long time but Comps are not as good now. Our choice now is Harrah's.
This does not mean that Harrah's is better at any of those things we look for, in fact, they are not, but their comp policy so far is better than Trop, once you make the next level, you are guaranteed free rooms for at least 4 days at any of the properties at any time. We have stayed at Paris (hated it - like a morgue), Imperial Palace (better than they used to be), Harrah's (fine), Bally's (not very good), Flamingo (not bad), Caesar's is next (don't know yet). We like to try different places each time to evaluate.
The point of this is that everyone has their own take on what is important to them. Take the time to rank your priorities and then assign a point value to them. Visit different properties and rate them yourself. When you are done, despite the fact that Harrah's properties are not great, they will beat most of the competition.
We are not thrilled with MGM, NY, Pyramid, TI, Mirage, or anything else down Wynn way. Bellagio is awesome but can't get the comps there.
Let me just throw this out there about Harrah's. I made a complaint about something that occurred at a meet and greet. I was phoned personally by the manager of entertainment. I am not a high roller - I am middle class. That one gesture is part of the "litte things" that mean a lot.
Your counter views and opinions are welcome.
Returning to Vegas for the 1st time in 3 years. Staying at M-Bay and Ceasears because we wanted to stay somewhere new (usually stay at Orleans or flamingo, Luxor, MGM). Hope Harrah's doesn't destroy the palace before march but I like their no resort tax or whatever it is. I went through Harrah's training and found the instructors demanding but reasonable, I just couldn't type and talk about specials at the same time so decided it wasn't for me. I can't wait to return to your city and donate some money to your slots. I don't play table games but asking a dealer to share his tips with a pit boss or shift leader doesn't sound right to me. Hang in there vegas we're slowly comming back but if my health care premiums triple it may delay a return trip for some time.
I'll trade you Marvin Gardens and Tennessee Ave for Park Place.
The only time I visit Planet Hollywood is when I am at Bellagio and need some "fresh air". I might go across the street and maybe do some shopping if I hit a run of good cards in the Poker Room. For that purpose, the Planet Hollywood Shopping Mall is quite ok. But the casino itself is a joke.
From Switzerland
Boris, please quantify your comments about why PH is a joke. After you go from Casino to Casino, they all look about the same, so what is it that makes them worse than others? Since you visit Vegas often and spend a lot of time, what is your favorite and why? What do you look for?
isupportvegas, thanks for your inquiry. Let me give you some precious info to complete and update your database. You will find out that what I am saying is not "just another 9-5-bla-blah, and there's some reasonning behind the curtain.
Well, first of all, why is PH a joke:
a) Last time when I was there, there was a section called "High Limit" just to the very left of some entrance I used when coming from the Strip. Of course, besides bored dealers and managers there was not one single game going on. I can only see one reason for that: High Limit Players (people with class and pockets full of cash) do not like to play in a "High Limit" section that is absolutely open and visible for everybody walking through the casino, after just entering a casino. You may put a gift shop there, or perhaps another restaurant, but definetely not the heart of the gaming, the High Limit Pit!!!
b) There is too much noise inside of the mega building. You can't hear just one kind of music, but there are different kinds of music that are overlapping. This is very annoying and disturbing.
c) The Poker Room, as it was a few years ago, well, that was a poker room. What I saw last time was nothing but a section of the main pit, surrounded by some ropes and if I did not recognize some hold'em tables, I wouldn't even know that this was the new "Poker Room".
d) The Parking garage is way too far away from the casino. You're probably better off parking across the street at Bellagio when planning to go gambling at PH, but oh, since you parked at Bellagio, you might just as well stay there and gamble there. Same games, same odds, right?
e) There were scandalous reports about that night club on the upper floor, called "the Privee", and let's go back in time, at the beginning, when the New Aladdin opened, there was this classy high limit casino called "The London Club", which was to my delight and I spent days and nights in there gambling. Since this casino inside of the casino disappeared, PH is nothing but a big hall with gaming tables, noise coming from all kinds of loudspeakers and slot, wherever you look. The players club booth reminds me of some airline ticketing counter.
This place is too big and too noisy. But the buffet was quite good, although overpacked, as well.
I know people got used to my negative comments, but I know that there are way better places worth visiting in Vegas. And it doesn't take a guy from Switzerland to get notice of these casinos.
I like the red rock, the Santa Fe, the Sunset Station, East Side Cannery, The El Cortez, South Point, Suncoast, Rampart Casino. These are the casinos that get my money. Casinos on the Strip don't. They're too greedy and too noisy.
Thank you for your kind attention.
From Switzerland
In regards to Harrahs, my wife and i have been very loyal customers. We have stayed at all of their properties in Vegas, Bally's in AC, Council Bluffs Iowa, Kansas City, News Orleans, and we frequently travel to Shreveport. The one advantage with harrahs is that we get free rooms and comps all over the country. Rooms are easy to come by and we never have a problem with comps. I have, of course noticed that the quality of service has declined. We were in Shreveport last weekend and we ate at the buffet. There were twelve tables that needed to be cleaned and there were not enough people to get them done. I do understand the complaints regarding the management at Harrahs, and we have seen the results.
Woodman
A good friend of mine is considered as a "very good customer" at MGM Mirage. He's playing the high limit slots and at the 100 dollar minimum B-J tables. A simple email to his host is needed to get his suite booked. Even on X-mas or other big holiday weekends, he would always get a comped/free room plus the restaurant comps needed to feed him while he's staying there.
I take it you're also quite a good customer at Harrah's and give them action in return for this special treatment. The casinos do not give away these freebies just like that. They want something for something.
AS for me, I am just a small player. Meaning, I play a little b-j, some craps, (line bets only, which do not qualify for comps unless I play 10 hours in a row), and I play live poker, which is also not a big money maker for the casinos. However, they give me a few comps , the dollar per hour from my live poker usually is ok to pay a part of my buffet, but I don't stand to lose my ranch in Vegas. I get a little something for a little something I give to the casino.
to be continued...
part two:
Back to my buddy, the big player: He noticed something interesting that holds up and changed his way of thinking. He told me once that he stayed at the Mansion suites at MGM Grand, super high deluxe, with all possible luxury you can imagine. They even had a "butler" to their discretion, 24 hours-a-day. They ate the best restaurants, 200 dollar bottles of champagne for lunch, caviar, etc etc. The problem is, that they tipped 15-20 per cent of these tabs, and that was much more money than you pay if you frequent the regular restaurants, including the tips.
Ok, it must be fun living the live as a high-roller (high-flier). But the risk is extreme. Besides all the free comps you stand to lose a lot of money. Ok, you could win a lot, too, but losing is easier than winning, right?
Believe it or not, but my buddy came to the conclusion that he rather pays for the room he needs in full and is free to play wherever, whenever and for how much or how little ever, than to be forced to play 4-6 hours on a 100 Dollar b-j table with 2 or 3 hands minimum, just to give the minimum action needed that justifies his comps. Today, he's visiting other casinos in the world, such as Macau, Marrokko, Monte Carlo. He's no longer a "big player", but plays big at times. He taught me that and I also follow this strategy: I am after the "legal and free promotions", such as the good hotel deals and the 2-for-1 coupons, which are also ok, but I am not trying to get a free room or a free restaurant invitation for playing 6 hours on a 25 dollar table. This could cost you 1000s of dollars when things go badly. What good is a comped room then? I think I couldn't sleep well after losing 3000 dollars in 1 session, anyways.
I don't think that all these players clubs on the Strip have any value anymore. The comps are extremely tight for the normal player, so standing in line to get your "DISCOUNT CARD" is not an option to me. The Strip Casinos may be interesting to the people who don't really care about how much money they will spend/lose. And then it's nice giving a free suite and all the other amenities. Regular players , sitting in front of 5 cents slots or even quarter videopoker players should not expect anything, as they probably won't get much. And I don't even blame the casinos. it makes no sense to comp a 25 cents player. Times have changed, the casinos work differently today than they operated 40 years ago. And the customers do re-act to that accordingly. Well, I did.
From Switzerland
The property might be in good shape now but it won't be for long. Harrahs execs will make a fortune letting it go to hell like some of their other properties. Then they will want to change (decrease again) odds on their games in order to pay for cleaning the place up. A monopoly to be avoided if you still want to visit Vegas.
Boris,
Thanks for taking the time to offer your observations of PH. This should show everyone that your experience, your tastes, your preferences all help you form your opinion about a property. When anyone says - that place is terrible, there needs to be quantification. For those that are not high rollers, that like sleazy clubs, and do not think the same as Boris will find PH to be a world class destination of choice. That is why it is high time we all stop saying how terrible Harrah's is without demonstrating what experience caused you to feel this way. Then stop and ask yourself, is it better somewhere else?
isupportvegas
you know, I have a very special taste of Vegas when visiting. I know that my bankroll I bring to gamble is quite large but definetely not large enough to sustain a heavy downhill swing on Las Vegas Boulevard's high limit pits. Therefore I stay away from these joints but enjoy Las Vegas and the other little cities around the way I like. For instance, there was this experience I had out there in Henderson which was unique and definetely worth mentioning:
I was looking for the Terrible's Casino on Boulder highway, all the way out there in Henderson. It was quite difficult because I knew the club is rather small. So finally I found it and when I entered the little "casino" I was quite suprised that in total there were less than 10 people in there, including the bowling alley!! I signed-up for the club and received my welcome gift, a nice red Terrible's hat. And then I found a progressive videopoker bank whith quite good parameters despite the fact that it was a nickle carrusel. I did not hit any of the jackpots but had a lot of fun and the drinks were free, to my surprise. Just like in any other major casino. Of course, and perhaps Sinatra is reading this one, too, I ALSO TIPPED THE WAITER, which I usually do, of course. After 2 hours or so I was still winning, but finally getting tired of playing. I cashed out and was hand-paid. It was a cool evening, especially because they played great music and the crew was extremely friendly. Absolutely unlike to these big casinos on the Strip where visitors are nothing but numbers.
Yes, I've visited many of these small casinos and even if I lose a little there, it's ok. The restaurants are great too, usually, much cheaper and great deals, hard to beat anywhere else. It's just the kind of Las Vegas a "normal tourist" would never get to see unless he starts scouting.
I have seen Station Casinos got bigger and bigger. I was there when Boulder Station opened up. I was a the Reserve and liked it much better in those days than what I see turned the company into this new Fiesta Casino. Too big now, and too noisy. I loved the Fiesta lights and always enjoy the buffet, as this is still the same. I have no bad feelings when avoiding the Strip as there are so many other casinos in the neighborhood. Even the El Dorado and the other casinos in Henderson mean more to me than Ceasars Palace and such. red rock, suncoas, the aliante, the Cannery North and East, all cool places and worth visiting. Although I believe that the Aliante will have it hard in the next 5 years if there's no growth in that neighborhood.
That's about it. To the readers from Las Vegas, they probably get a grasp what I am talking about and about my preferences. And to the regular tourists from all over the world, I suggest that you rent a car and get around in the valley. Vegas, this is not just the Strip. And you will get much more fun for your dollars.
From Switzerland