Starwood’s share in Planet Hollywood to fall
Starwood Hotels & Resorts Worldwide’s ownership share in Planet Hollywood Resort is expected to decrease to 11 percent from 15 percent after additional equity contributions by the majority owners are completed in the next couple of days.
The announcement was made this morning in a filing with the Securities and Exchange Commission.
Starwood declined to contribute $1.8 million in cash under an agreement where the resort’s equity owners were asked to periodically provide additional money to fund the working capital needs of the Strip property.
The joint-venture partnership of restaurateur Robert Earl and private equity firm Bay Harbour Management recently contributed $12.7 million and will fund the remaining $1.8 million not paid by Starwood to raise their equity holding to 89 percent.