There’s going to be some big changes happening on the Las Vegas Strip in 2023. Hard Rock International has finalized an agreement to acquire the operations of The Mirage Hotel and Casino in Las Vegas from MGM Resorts International, subject to regulatory approvals and other customary closing conditions. As part of the acquisition, Hard Rock plans to build a guitar-shaped hotel on the Las Vegas Strip.
“We are honored to welcome The Mirage’s 3,500 team members to the Hard Rock family,” said Jim Allen, chairman of Hard Rock International. “When complete, Hard Rock Las Vegas will be a fully integrated resort welcoming meetings, groups, tourists and casino guests from around the world to its nearly 80 acre center-Strip location.”
Prior to 2020, Hard Rock International had no previous involvement with the Hard Rock Hotel & Casino in Las Vegas. HRI purchased the licensing and naming rights for Hard Rock Hotel & Casino Las Vegas in May 2020 with plans to bring the brand to the Las Vegas Strip in the future.
“This transaction is a significant milestone for MGM Resorts, and for Las Vegas,” said Bill Hornbuckle, CEO & president, MGM Resorts International. “As part of the team that opened The Mirage in 1989, I know firsthand how special it is, and what a great opportunity it presents to the Hard Rock team. I want to thank all of our Mirage employees who have consistently delivered world class gaming and entertainment experiences to our guests for more than three decades.”
“This announcement marks the culmination of a series of transformational transactions for MGM Resorts during the last several years,” said Paul Salem, chairman of the board of directors, MGM Resorts International. “The monetization of our entire real property portfolio, together with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the Company with a fortress balance sheet, premier portfolio, and significant financial resources to pursue our strategic objectives.”
For the twelve months ended Dec. 31, 2019, The Mirage reported adjusted property earnings before interest, taxes, depreciation, amortization and restructuring or rent costs of $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 $90 million. MGM expects net cash proceeds after taxes and estimated fees to be approximately $815 million.