Los ANGELES -- Marriott International Inc. joined forces with Financial Capital Investment Co. to strengthen FCI's bid to acquire the Aladdin Hotel & Casino in Las Vegas, according to published reports.
The Aladdin, which is in Chapter 11 bankruptcy proceedings, is the object of rival bidding that could see the $1.4 billion edifice turned into a Planet Hollywood Hotel or, under the reported FNC-Marriott proposal, into a Far East-theme resort called Asia.
OpBiz LLC, formed by Planet Hollywood chairman Robert Earl, Starwood Hotels and Resorts Worldwide and Bay Harbour Management, had won preliminary court approval for its planned $635 million buyout package, including a $90 million capital investment and assumption of $510 million of Aladdin's debts.
Financial Capital managing director Richard Alter was quoted by the Wall Street Journal as saying Marriott would invest $25 million as part of a 50-50 joint venture with FCI, which proposed to spend $100 million in a makeover to the Asia concept and assume $476 million of Aladdin's debt.
Alter was quoted as saying that Marriott's Renaissance division would operate the hotel but not the casino, which would mark Marriott's debut on the Las Vegas Strip.
Alter could not be reached for comment, and executives at Marriott did not return calls by presstime.
All bids for the Aladdin reportedly must be submitted in court by June 17 for a scheduled June 20 hearing.
Robert Sorenson, president of the management arm of Trizec Properties that operates the Desert Passage megamall surrounding the Aladdin resort, denied reports that the FCI Marriott group had negotiated to purchase the retail-and-restaurant center. "We've had preliminary conversations," Sorenson said, adding that he had similar talks with OpBiz representatives.
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