Tuesday, Feb. 1, 2011 | 12:54 p.m.
Map of Hard Rock Hotel & Casino
4455 Paradise Road, Las Vegas
A group of lenders has filed a notice of foreclosure against the financially struggling Hard Rock Hotel, which would give the lenders the right to take control of the hotel-casino in a public auction scheduled for Feb. 7.
The lending group, NRFC HRH Holdings LLC, controls a piece of the $1.36 billion loan used to acquire, renovate and expand the Hard Rock. A joint venture including Morgans Hotel Group and investment banking firm DLJ Merchant Banking Partners bought the Hard Rock in 2007 with the goal of revamping the property and boosting profit by catering to well-heeled guests.
The Hard Rock completed its $750 million renovation and hotel expansion last year.
Hard Rock Café developer Peter Morton opened the Hard Rock in 1995 and developed a new tourism niche in Las Vegas by catering to younger visitors interested in partying and nightlife. Casinos across Las Vegas have since developed elaborate nightlife venues in direct competition with the Hard Rock, which has fallen on hard times in the downturn.
The notice said prospective buyers have the opportunity to bid at a public auction for the lenders' interest in the property. The auction is scheduled for 1 p.m. Las Vegas time Monday in front of the Supreme Court of the State of New York at 60 Centre Street in Manhattan.
Global Gaming & Hospitality LLC, with offices in Las Vegas and New York, is assisting lenders in the foreclosure proceedings. The company declined to comment on the sale.
It's unclear from the disclosure whether the lender intends to acquire the property and take over management of the Hard Rock or intends to sell its interest to the highest bidder.
A Hard Rock spokeswoman could not be reached for comment.