Harrah's Eyes Planet Hollywood

LAS VEGAS-Harrah’s Entertainment Inc. is indeed looking to gain control of the Planet Hollywood resort. A couple of months after reportedly purchasing approximately 16% of $870 million in defaulted debt tied to the Las Vegas Strip resort, CEO Gary Loveman last week acknowledged the effort in an internal email, a Harrah’s spokesperson has told the Las Vegas Sun .

Loveman’s interest in the resort is due in part to its location at the south end of six contiguous Harrah’s-owned properties on the east side of the Las Vegas Strip. “The Planet Hollywood resort is currently in default to its lenders,” Loveman reportedly states in the email. “As a result of our purchase of their debt, we are working on a plan that also would allow Harrah’s to own and manage the property.”

Harrah’s, the largest casino operator in the world, says it has been looking to capitalize on opportunities created by the recession. Planet Hollywood is a 2,500-room resort located at the corner of Las Vegas Boulevard and Harmon Ave., across from the new CityCenter development. PH reported a $17.5-million third quarter loss earlier this month and disclosed that lenders are now in control of its finances.