MGM Resorts International today announced it has closed on the sale of the operations of The Mirage Hotel & Casino to Hard Rock International for $1.08 billion in cash. The 3,044-room casino resort will continue to operate as the Mirage Hotel & Casino until the renovation and rebranding of the property to the Hard Rock Hotel & Casino Las Vegas is complete.
"Mirage employees have delivered unparalleled service and experiences over the past three decades, and we are forever thankful for their work to make The Mirage such an iconic, world-class destination," said Bill Hornbuckle, CEO & President, MGM Resorts International.
"I'm excited for the opportunities that lay ahead for the property, its people and the entire Las Vegas Strip with this prime location now under Hard Rock's leadership. We're thrilled to welcome Hard Rock to the neighborhood and wish them all the very best."
“We’d like to officially welcome the 3,500 team members at the Mirage to the 45,000 global Hard Rock family and express our gratitude to the Nevada Gaming Control Board and the Nevada Gaming Commission for approving the gaming license for us to operate The Mirage Hotel & Casino,” Hard Rock chairman Jim Allen said. “We are excited to create an integrated resort on the Strip that will make this legendary entertainment community proud.”
For the twelve months ended 31 December 2019, The Mirage reported Adjusted Property EBITDAR of US$154 million. At the closing of the transaction, MGM Resorts' master lease that currently includes The Mirage property will be amended to reduce the annual rent by US$90 million. The company expects net cash proceeds after taxes and estimated fees to be approximately US$815 million.
VICI, as the real estate owner of The Mirage will enter into a new lease agreement with Hard Rock.
Under the terms of the agreement, MGM Resorts will retain The Mirage name and brand, licensing it to Hard Rock royalty-free for a maximum period of three years while it finalizes its plans to rebrand the property.
Source: GMB
