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Summary
- Seminole Tribe of Florida buys Mirage Las Vegas operations
- Deal reported to be around $1.075 billion
- Hard Rock International to add trademark guitar-shaped hotel
Florida-based Hard Rock International (HRI) which is owned by the Seminole Tribe of Florida struck a deal worth $1.075 billion as it purchased the operations of the Mirage Hotel & Casino in Las Vegas.
The announcement of the deal by MGM Resorts International and Hard Rock confirmed speculations that the latter was planning to expand into the Las Vegas market.
Previously, MGM had announced that the operations for Mirage were on sale.
Mirage Will Be First Tribal Casino on LV Strip
MGM will retain the Mirage’s name and brand as part of the deal. The hotel is licensed to Hard Rock for 3 years free of any royalty while it finalizes its rebranding strategy. Hard Rock’s plans include constructing its trademark guitar-shaped hotel. Besides being an attraction for its enormous 90-foot Strip-side volcano, the Mirage will also become the first tribal casino in Vegas. The Seminole Tribe is expected to close this deal during the second half of 2022 subject to regulatory approvals.
Jim Allen, the chairman of HRI welcomed the Mirage’s 3,500 strong team into their fold. Allen announced that upon its completion, Hard Rock Las Vegas would operate as an integrated resort that would open its doors to global tourists, corporate professionals, and casino players. In May 2020, HRI with its purchase of the Hard Rock Hotel & Casino, set its sights on establishing a venture in the Las Vegas Strip.
MGM CEO Bill Hornbuckle also welcomed the deal, deeming it a massive achievement for the company. Post the arrangement, MGM is looking at $815 million worth of cash proceeds after deducting tax and fees from selling the Mirage operations.
Paul Salem, the chairman of the board of directors at MGM affirmed that due to the pact, the company is looking at a strong balance sheet and property portfolio along with significant funds to achieve their strategic aims. The current deal is 17 times more than the Mirage’s adjusted property earnings worth $154 million in 2019.
Hard Rock Hotel Will Add to Vegas Scene
According to casino consultant Brendan Bussmann, HRI’s famed guitar-shaped hotel will render a magic touch to the Las Vegas casino market. He also commented that the Seminole-owned franchise is a lifestyle brand that continues to charm generations with its rock-and-roll vibe.
