Hard Rock buys Mirage casino on Las Vegas Strip for $ 1.1 billion


Hard Rock International has agreed to acquire Mirage Casino operations on the Las Vegas Strip from MGM Resorts International MGM -2.58%

for nearly $ 1.1 billion with plans to build a giant guitar-shaped hotel on Glitzy Boulevard.

The deal with Hard Rock, owned by the Seminole tribe of Florida, is the latest of several financial deals on the Strip, which was hit hard during the pandemic shutdown but has seen a rebound in tourism. The sale of the Mirage business is expected to be finalized in the second half of 2022, pending regulatory approvals.

A render of Hard Rock’s plans for a guitar-shaped hotel on the Las Vegas Strip.


Photo:

Hard Rock International

The Mirage, known for its tropical theme and erupting volcano on the Strip, opened in 1989. MGM Resorts,

MGM -2.58%

who bought the casino-hotel in 2000, had announced plans to sell in November as it focuses on growth areas, such as sports betting and the pursuit of a new casino in Japan.

“This transaction is an important step for MGM Resorts,

and for Las Vegas, ”said Bill Hornbuckle, Managing Director of MGM Resorts. “As a member of the team that opened The Mirage in 1989, I know how special it is and what a great opportunity it represents for the Hard Rock team. “

Mirage real estate is owned by MGM Growth Properties LLC, a publicly traded real estate investment trust that MGM Resorts established in 2016. MGM Growth Properties, which owns real estate in several resorts on the Strip, is in the process of closing a deal to be acquired by Vici Properties Inc.

for approximately $ 17.2 billion, of which 5.7 billion is debt. This agreement was to be finalized in the first half of 2022.

Hard Rock said it plans to enter into a long-term rental agreement for Mirage real estate with Vici Properties.

MGM Resorts said it expects the net proceeds from the sale, after taxes and fees, to be around $ 815 million. It will retain the Mirage brand and license it to Hard Rock royalty-free for up to three years, while Hard Rock finalizes the rebranding of the property, the company said.

Even though it sells its Mirage business, MGM Resorts continues to invest some of its energies in the Strip. The company agreed earlier this year to buy the Cosmopolitan operations for around $ 1.6 billion from Blackstone. Inc.

Other MGM Resorts Strip casinos include the Bellagio, MGM Grand, Luxor, and New York-New York.

Write to Katherine Sayre at [email protected]

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Appeared in the print edition of December 14, 2021 under the title “Hard Rock to Buy Vegas Mirage Casino”.


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