Marriott makes bid on Aladdin

Jun 3, 2003 7:00 AM

A Los Angeles group that includes Marriott International has submitted a proposal to buy the bankrupt Aladdin.

A Planet Hollywood bid was accepted as Aladdin’s "stalking horse," though the bankruptcy court must approve the final bid, presumably when it meets on June 20.

Under a proposal submitted by Financial Captial Investment in Los Angeles, Marriott would operate the hotel, but not the casino.

The group has offered to assume $476 million in debt, and pump $100 million into renovating the property.

The proposal also calls for scrapping the hotel’s Arabian Nights theme for an Asian theme.

The Far East theme, which would be aimed at middle-market Americans, would not be carried over to the hotel, which would operate under Marriott’s Renaissance banner.

Planet Hollywood’s stalking horse bid includes $90 million to renovate the property over three years, and to assume $510 million in refinanced debt.

Starwood has agreed to add an additional $20 million to the package.