The famed Hard Rock Hotel has also been feeling the crunch of the struggling economy, even more so now that a group of lenders has filed their notice of foreclosure on the property. It is possible that this group could take control of the hotel and casino and put it up for public auction on Feb. 7 if they are successful.
The group, NRFC HRH Holdings LLC, is in control of a large portion of the $1.36 billion loan that was used to acquire, expand and renovate the Hard Rock. They have worked with Morgans Hotel Group and DLJ Merchant Banking Partners since 2007 to rejuvenate the property in the hope of boosting sales and profit. The primary goal was to make the hotel more appealing to a class of clientele that could afford higher priced vacations.
The renovation and hotel expansion was completed last year. It cost everyone involved $750 million.
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