Morgans Hotel Group reported in a regulatory filing that the 1,500-room Hard Rock Hotel & Casino Las Vegas is facing mounting debt obligations that are putting the property at risk for foreclosure.
Morgans, which operates the hotel and has a 12.8 percent ownership stake in it, said that challenges in the Las Vegas hotel market had led to a situation where “Hard Rock’s operating cash flow have not been sufficient to cover the aggregate debt service this year.”
The property completed a $750 million expansion earlier this year that included 865 new rooms and suites.
