Groundbreaking slated for Planet Hollywood Towers

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Groundbreaking slated for Planet Hollywood Towers

By ROD SMITH
GAMING WIRE

High-rise construction finally hits Harmon Avenue east of the Strip this morning with groundbreaking for Planet Hollywood Towers by Westgate, a $750 million condominium and time-share project.

The 50-story Planet Hollywood Towers is being developed by a partnership of Planet Hollywood Resort and Casino, owner of the Aladdin Resort and Casino, and Westgate Resorts, the world's largest privately held time-share company.

Planet Hollywood Co-Chairman Robert Earl said with the new project, Westgate Resorts is going where no time-share developer has gone before.

"It'll be fully integrated (with Planet Hollywood Resort and Casino). There are no others like that in the industry," he said. "For the time-share buyer, that creates excellent value. Other time-share (projects) are stand-alone and not linked to a resort or casino."

Planet Hollywood Towers will be on the corner of Harmon Avenue and Audrey Lane and connected to the Planet Hollywood resort complex on the Strip, which has 12 restaurants, luxury resort amenities and a full-service shopping mall with more than 140 stores.

The time-share and condominium-hotel project will include more than 1,250 units ranging in size from one to four bedrooms, increasing the resort's hotel-room inventory by 2,800 rooms to 5,500.

The top four stories will include 28 luxury condominiums ranging in size from 4,000 square feet to 10,000 square feet with prices starting at $4 million.

Brian Gordon, a partner in the Las Vegas-based financial consultant Applied Analysis, said the two new towers in the project will increase the critical mass for the long-troubled Aladdin and increase its potential for success.

"Density drives values and the towers will maximize the underlying land values," he said. "That goes along with the redevelopment and rebranding of the property and the design elements that are planned to make the property thrive in the long run."

Deutsche Bank analyst Andrew Zarnett said adding rooms to the property inventory will drive added revenues into the casino, food and beverage, and retail operations of the Aladdin.

"The bottom line is (Earl) will have a greater number of rooms with people who'll add cash flow without added costs and drive cash flow," Zarnett said. "And he'll gets to do it all with other people's money rather than his own."

Westgate Resorts President David Siegel, whose company is also developing a 208-unit time-share project on Flamingo Road, said that after years of searching he is convinced he has found the top location for a major time-share project in Las Vegas and an ideal partner for the development.

"We had to kick a lot of tires along the way," he said.

The tower is being designed by Gerald Koi, an architect with the firm Morris Architects.

His goal for The Planet Hollywood Towers is to create a design that blends with the Planet Hollywood brand, Siegel said.

DiLeonardo International, recognized for its achievements and innovations in the hospitality industry, is creating the interior designs.

Bovis Lend Lease Americas, one of the country's largest construction managers, is overseeing the construction.

Siegel said Planet Hollywood Towers should open in late 2007.

The Aladdin, which is being rebranded Planet Hollywood Resort and Casino, is a joint venture partnership involving Bay Harbour Management and Starwood Hotels and Resorts Worldwide, and Earl, founder of Planet Hollywood International.

The property will continue to operate as the Aladdin Resort and Casino during an extensive renovation process, which is scheduled for completion in the second half of 2006.

On completion of renovations the property will be rebranded and renamed the Planet Hollywood Resort and Casino, a Sheraton hotel.

Westgate Resorts is an Orlando-based subsidiary of Central Florida Investments, which operates and manages vacation ownership properties in Central Florida and other parts of the United States.