The company has agreed to sell the Palm Beach, on Berkeley Street in Mayfair, to Stanley Casinos for £36.25 million ($58 million) in cash. Then in a separate deal LCI agreed a £25 million ($40 million) sale and leaseback on its 50 St James's casino. Under the terms of the deal LCI will retain the gaming licence. Joint new owners venture capitalist St James Capital and Celebrity Gaming, owned by founder of Planet Hollywood Robert Earl, plan to refurbish the property and add a nightclub in the basement, an extra restaurant and cocktail bars.
LCI is struggling under a debt mountain after its disastrous experience developing the Aladdin casino hotel in Las Vegas. The hotel was forced into bankruptcy by LCI which lost £130 million ($208.2 million) on the venture. There has since been speculation that Planet Hollywood and hotel group Starwood may buy the hotel for around £312.1 million ($500 million).
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