An iconic guitar-shaped hotel will be arriving on the Strip in Las Vegas under a new agreement between Hard Rock and MGM Resorts.
Hard Rock International to Acquire the Operations of The Mirage
The legendary hospitality and entertainment company, Hard Rock International (HRI), announced on Monday that it agreed to acquire the operations of The Mirage Hotel and Casino located in Las Vegas from MGM Resorts International. With this acquisition, HRI plans to build an all-new guitar-shaped hotel at the heart of the gambling capital of the world.
The price tag for The Mirage’s operations acquisition is the staggering $1.075 billion in cash. Additionally, HRI would need to enter into a long-term lease agreement for the real estate property of The Mirage with VICI Properties Inc. This is because the deal includes the operations and not the underlying property at The Mirage. HRI revealed that the acquisition is “subject to customary working capital adjustments.”
Before 2020, HRI wasn’t involved with the Hard Rock Hotel and Casino in Las Vegas. However, in May 2020, HRI purchased both the naming and licensing rights for Hard Rock Hotel and Casino Las Vegas. Back then, the company vowed to bring the brand to the Strip when it sees the right opportunity. To help with the deal, HRI picked Barclays as an exclusive financial advisor. Moreover, the company chose Jones Day as a legal advisor along with Fox Rothschild LLP. HRI also hired the services of McDonald Carano LLP as a special gaming counsel.
The Acquisition Marks an Exciting Moment for HRI
HRI’s chairman, Jim Allen, shared his excitement in a statement. He outlined that the company is “honored to welcome The Mirage’s 3,500 team members to the Hard Rock family.” According to him, the 80-acre location at the Strip will become a fully integrated resort that will welcome tourists, as well as casino and other guests once Hard Rock Las Vegas is completed.
The news about the acquisition of The Mirage does not come unexpectedly. In fact, during a Q3 earnings call last month, MGM’s CEO, Bill Hornbuckle, revealed that the company was planning on selling The Mirage’s operations. Back then, the company explained that selling the operations of the hotel and casino will help MGM maintain other existing Las Vegas properties. At the same time, selling The Mirage’s operations would help “diverse the nature” of the company’s offerings in the city.
As one of the most recognized brands globally, HRI operates venues in 67 countries around the world. This makes some 249 venues such as Hard Rock Shops, Hotels, Casinos, Cafes and more. The company is yet to reveal more details regarding the new guitar-shaped hotel that will be arriving in Las Vegas.