The deal represents a major expansion for the Hard Rock brand, which is owned by Florida’s Seminole tribe. There was a Hard Rock casino located off the Strip for a number of years that is now owned by Virgin Hotels. The company has been looking for a casino on the Strip, the center of Las Vegas nightlife, for a while.
The Mirage will become the first tribal casino on the Strip. The San Manuel Band of Mission Indians is set to close on its acquisition of the off-Strip Palms from Red Rock Resorts by the end of the month. The Mohegan Sun runs the casino operations of the off-Strip Virgin Hotels Las Vegas, but doesn’t have an ownership stake.
The Mirage, built by casino mogul Steve Wynn, opened in 1989. It’s known for the faux volcano out front that erupts nightly, as well as its dolphin and tiger attraction.
MGM is in the process of acquiring the higher-end Cosmopolitan Las Vegas, and Chief Executive Officer Bill Hornbuckle has said he wants to reduce the company’s exposure to Las Vegas. MGM is the largest operator of casinos in America’s gambling capital.
Hard Rock will pay rent to MGM Growth Properties, a real estate investment trust that owns the Mirage land. MGM Growth is in the process of merging with Vici Properties.
The new owners plan to build a guitar-shaped hotel on the site, with Vici investing as much as USD1.5 billion in the redevelopment.
Source: Bloomberg
