Mirage to be transformed into a ‘brand new resort’ on the Las Vegas Strip

The Mirage will become a “brand new resort” once Hard Rock International completes the renovation of its soon to be acquired property in the heart of the Las Vegas Strip, the president of the company said on Tuesday.

Hard Rock announced Monday that it is buying the operations of The Mirage from MGM Resorts International for $ 1.075 billion, a deal that will put the Florida-based games company on the Strip for the first time. And he intends to make his mark, as the company plans to build a new guitar-shaped hotel tower as part of the resort’s full rebranding as the Hard Rock.

But that means other attractions, including the man-made Mirage volcano along Las Vegas Boulevard and the Secret Garden and Dolphin Habitat, could disappear with The Mirage branding as part of the transition.

“It’s our intention that it feels totally like a whole new resort,” Hard Rock president Jim Allen said in an interview on Tuesday.

“I am 100% committed to creating something new,” he added. “Buying something and putting the Hard Rock brand on it has never been an option. “

The timing of these changes is less clear, however. Allen said officials at Hard Rock have no comment on the timing of the rebranding, renovations or construction of the Guitar Hotel and are focused on closing the deal, which is expected to take place during of the second half of 2022.

MGM Resorts will retain the The Mirage name and brand and grant it to Hard Rock for a period of up to three years while the company finalizes its plans to rename the property.

Synergistic opportunities

Allen said Hard Rock, who is owned by the Seminole tribe of Florida, has been considering buying property on the Strip for the past decade, adding that Las Vegas “is an incredible international destination.”

He said he sees a lot of synergy with the company’s other casino properties, particularly in their Florida home. The company owns and licenses the Hard Rock name at nearly 250 locations, in Hard Rock casinos, stores, cafes and hotels, in 67 countries.

“I think one of the main reasons for us we have such a dominant position in Florida, one of the most lucrative states in the country. We certainly know that there is a huge amount of income from Florida who regularly visits Las Vegas, ”Allen said. “From our perspective, we’ll have a product that we can offer under our own brand and ownership, and we’re certainly looking forward to that. “

CBRE analyst John Decret, in a note to investors on Tuesday, welcomed the move.

“This transaction highlights the desirability of Las Vegas casinos and supports our bullish outlook for the Las Vegas Strip. … It was a win, win, chicken dinner deal for all parties involved, ”he said.

“A great day for the Indian country”

Along with the Hard Rock, the Seminole Tribe will become the first tribal company to enter the Strip Gaming market.

Allen noted that about half of gross gaming revenue in the United States comes from tribal lands.

“I think this is a huge step,” said Allen, who is also CEO of Seminole Gaming. “Tribes have been developing in this category for many years. Certainly, I think it is a great day for the Indian country.

DeCree said the tribe’s involvement will also bring additional benefits as new operators.

“The beautiful thing about Native American capital is that it’s generational and Hard Rock will be able to do it right without worrying about the barriers to short-term ROI, which is good for all of Las Vegas,” he said. declared DeCree.

Contact Colton Lochhead at [email protected] To follow @ColtonLochhead on Twitter.

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