Earlier this year Harrah’s started purchasing debt of Planet Hollywood who has since defaulted on their debt obligations. Right before Thanksgiving Harrah’s sent an email to its employees stating their interest in Planet Hollywood.
“The Planet Hollywood resort sits adjacent to the Paris Las Vegas Hotel & Casino, currently the southernmost of six contiguous Harrah’s-owned properties on the east side of the Las Vegas Strip,” Loveman’s e-mail said.
“The Planet Hollywood resort is currently in default to its lenders. 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. This is an attractive proposition because of Planet Hollywood’s proximity to our other resorts on the Strip, its high-quality product offering and its strong brand name.”
“This move is the latest example of our strategy to make purchases or acquisitions capitalizing on opportunities created by current economic conditions. I look forward to sharing more details with you about this project in the future,”
Competition always leads to good service for customers. If the customer doesn’t like what he/she receives from on company they can choose to go elsewhere. That’s the main reason I do not look forward to Harrah’s taking over Planet Hollywood.
This move would likely mean Planet Hollywood will eventually slow down with some of their innovative marketing ideas and just be another Harrah’s casino with the same mediocre service and offers.
I’m not worried about the gambling at Planet Hollywood going downhill since they already have plenty of 6:5 blackjack and mediocre video poker. I’m more concerned with the overall vibe and feel of the casino as well as the valuable and interesting marketing ideas at Planet Hollywood.
Maybe Harrah’s won’t get in the way of something small and cool, but that’s not the way the machine works and that’s too bad.