MGM Resorts Agrees To Sell The Mirage Operations To Hard Rock International

MGM Resorts declared on Monday its plan to sell The Mirage operations to Hard Rock International (Hard Rock). The transaction, however, is still awaiting regulatory approvals which are expected in the latter half of the coming year.

Hard Rock has shelled out $1.075 billion in cash to acquire the operations of a casino on the Vegas Strip. The purchase price is subject to standard adjustments related to working capital. Additionally, Hard Rock will take over MGM Resorts’ lease with the existing landowner, VICI Properties, Inc.

The most important aspect of the deal involves the Hard Rock. They intend to transform the skyline of the Vegas Strip with a hotel tower shaped like a guitar.

Not a surprising deal

During MGM Resorts’ third-quarter earnings call, CEO Bill Hornbuckle hinted at a forthcoming sale. However, this is not at all an incredible deal.

I previously stated that we are content with our current exposure in Las Vegas. Therefore, we are in the preliminary stages of putting up our Mirage operations for sale.

It’s not surprising that Hard Rock is purchasing The Mirage’s operations. The company has been aiming to run a Las Vegas casino since it acquired the naming rights in 2020.

Jim Allen, the Chairman of Hard Rock, announced in October during the Global Gaming Expo that the company was in search of a property on the Vegas Strip. However, he clarified during the gaming conference that the Hard Rock was not considering buying Planet Hollywood, a property it was rumored to be interested in.

Hornbuckle comments on The Mirage sale, saying:

“This transaction marks an important achievement for MGM Resorts and Las Vegas. Being part of the team that launched The Mirage in 1989, I have personal experience of its unique value, and I understand the fantastic opportunity it offers to the Hard Rock team.”

Get ready for a new Vegas strip skyline

The Hard Rock will divulge further details about the deal once it is finalized. Nevertheless, the company has already disclosed one significant detail regarding the property.

Like MGM Resorts, the Hard Rock will also sign a long-term lease agreement with the landowner, VICI Properties Inc.

Hard Rock makes a statement about the purchase, saying:

Hard Rock intends to construct an iconic Guitar-shaped Hotel on the renowned Las Vegas Strip, following their acquisition.

If the depiction is true to the statement, the new hotel tower shaped like a guitar will be erected in front of The Mirage. The iconic volcano that currently holds this spot will probably be removed.

This epic video from Pitbull and Blake Shelton showcases the first guitar-shaped Hard Rock Hotel tower.

MGM Resorts will retain ownership of The Mirage’s name and brand. The name isn’t going to change immediately. For three years, Hard Rock has held a license for “The Mirage” name. In time, The Mirage will transition into something similar to the Hard Rock Hotel & Casino.

Currently, The Volcano at The Mirage operates nightly at 7 pm, 8 pm, 9 pm, 10 pm, and 11 pm. Make sure to enjoy it while you have the opportunity.

MGM moving focus south

MGM Resorts bought the operations of The Cosmopolitan before divesting from the operations at The Mirage. Essentially, the casino positioned south of The Mirage will take its place in MGM Resorts’ portfolio.

It is logical for MGM Resorts to concentrate on the southern half of the Vegas Strip.

The company runs Park MGM, New York-New York, and MGM Grand in the vicinity of T-Mobile Arena. Aria and The Cosmopolitan are also within a reasonable walking distance.

Mandalay Bay and Luxor, operated by MGM Resorts, serve as the activity centers before and after Raiders games and concerts at the nearby Allegiant Stadium. MGM Resorts also runs casinos in close proximity to the stadium.

Excalibur is situated between the two venues. At the recent Morgan Stanley Virtual Global Consumer & Retail Conference, MGM’s Chief Financial Officer, Jonathan Halkyard, revealed that the company is contemplating the development of seven acres of land at Excalibur.