Planet Hollywood plans to join the constellation of bright lights in New York's Times Square with a $150-million movie-themed hotel-restaurant complex.
The move is part of Planet Hollywood's rapid expansion in the United States and overseas. The chain added roughly 16 outlets in 1997--its biggest growth ever in a single year, a company spokesman said.
Expansion costs and lower-than-expected sales at Planet Hollywood and its subsidiary, Official All-Star Cafe, resulted in lower fourth-quarter income--$1.3 million compared with $22.3 million for the same period of 1996.
Planet Hollywood will move from its current 57th Street location to the site it purchased for $50 million in the Times Square revitalization area. The new hotel is scheduled to open by mid-2000.
The company has two other lodging projects in the works: an All-Star Hotel in New York and a music-themed hotel-casino in Las Vegas.
Orlando-Fla.-based Planet Hollywood has a 20% financial stake in the venture. It will run the restaurant and retail operations and continue to take in licensing fees.
Madison Equities and Times Square Partners--owned by Intell Management & Investment Co.--control the remaining 80%.
Frank Williams & Associates Architects designed the 339,000-square-foot facility, which includes 548 hotel rooms, a movie theater, and interview and studio suites. The general contractor for the project will be announced in the next two weeks.