Hard Rock International has completed the acquisition of the Mirage Hotel & Resort in Las Vegas, Nevada from MGM Resorts International for $1.08bn (£890.0m/€1.02bn).
The deal was agreed in December of last year and closed following approval from the Nevada Gaming Commission, with Hard Rock assuming control of the venue at 6am local Las Vegas time yesterday (December 19).
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.
Hard Rock Las Vegas renovations
Earlier this month, Hard Rock denied media reports that it plans to close and carry out major upgrade work at the Mirage upon its acquisition of the facility.
However, Hard Rock has now confirmed that this process will take an “extended period”, with further details of the new-look facility to be announced towards the end of next year. Plans include the addition of Guitar-shaped hotel tower – an iconic feature that is present at a number of its other land-based sites.
In addition, Hard Rock said all existing room reservations and group bookings at the Mirage will be honored with no action required by guests or group organizers.
“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.”
MGM chief executive and president Bill Hornbuckle added: “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.
“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.”
In relation to the deal, real estate investment trust Vici Properties will acquire the property of the Mirage itself. It will then enter into a new lease agreement with Hard Rock.
Initial total annual rent under the lease with Hard Rock is $90.0m with the lease having a term of 25 years and three 10-year tenant renewal options. Rent will escalate annually by 2.0%.
As part of this transaction, Vici may fund Hard Rock’s planned redevelopment of the Mirage through the Vici Partner Property Growth Fund.
In addition, Vici said that annual base rent payments under its master lease with MGM have been reduced by $90.0m to $770.0m to account for MGM’s divestiture of the operations of the Mirage.
John Payne, president and chief operating officer of Vici, said, “We are excited to host Hard Rock as they establish their presence on the Las Vegas Strip and believe their addition to the operator roster in Las Vegas further enhances the attractiveness of the market for consumers.
“This transaction has also allowed MGM Resorts to continue pursuing its long-term strategic objectives, demonstrating VICI’s ability to successfully collaborate with partners.”