Planet Hollywood

It looks like Planet Hollywood (who recently making headlines for a Poker Room Theft Scandal) is in even deeper financial trouble than we all thought.

As reported by the Las Vegas Sun, Planted Hollywood is reporting another quarterly loss, and has disclosed that its lenders are no in complete control of its finances.

Planet Hollywood’s parent company, BH/RE LLC reported losses of $17.5 million for the quarter ending Sept. 30th. This is significantly worse than they did during the same quarter of the previous year (losing “just” $10.7 million).

Revenue fell quite a bit- 20.6% to be exact- as the hotel received fewer gamblers, and even had to slash room rates to keep competitive in the discount-fueled recession economy. Times are truly tough for Sin City, and Planet Hollywood is feeling the pain.

In even worse news, the Hotel again reported that is has defaulted on debt obligations of $870 million, after failing to produce enough cash to make interest and reserve payments due on their mortgage serviced by KeyBank Real Estate Capital back on September 9th.

Planet Hollywood was forced to enter into a so-called “protective advance agreement” with the lenders, outlining conditions under which they would offer cash advances to the hotel so it could continue to operate.

And since CityCenter is about to open just across the street, things don’t look any brighter for the struggling Hotel in the near future. In a show of the pessimistic outlook of the Hotel, Planet Hollywood recently issued the following statement:

“We believe that third quarter 2009 operating results were negatively impacted by the current market conditions and that we will continue to experience lower than historical hotel occupancy, room rates and casino volumes throughout 2009. As a result, we have increasingly focused on efficiency initiatives to control expenses and improve performance. We are continually reviewing the costs and marketing opportunities to ensure maximum operating performance in the face of the current economic conditions,” the resort said.

We’re not that optimistic about their chances of weather this storm.