In a deal worth nearly $1.1 billion dollars in cash, MGM Resorts International has agreed to sell the Las Vegas Strip’s first megaresort, The Mirage, to Hard Rock International (HRI).
Hard Rock will acquire the operations of The Mirage, subject to regulatory approvals and other closing conditions, according to a news release issued on Monday (Dec. 13).
Hard Rock said it plans to build an iconic guitar-shaped hotel on the glitzy Las Vegas Strip.
"We are honoured 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 centre-Strip location."
HRI will pay $1.075 billion in cash for the operating assets of The Mirage and it will enter into a long-term lease agreement with VICI Properties Inc. for the real estate property.
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 and vowed to bring the iconic brand to the Las Vegas Strip when the right opportunity presented itself.
Barclays served as exclusive financial advisor to Hard Rock International in connection with the transaction, and Jones Day served as legal advisor to Hard Rock International together with Fox Rothschild LLP and McDonald Carano LLP as special gaming counsel.
This isn't the first time Hard Rock has landed in Las Vegas.
A Hard Rock Hotel had previously been operating just east of the Strip, but was sold in 2018 to Richard Branson's Virgin Hotels and partners, including investment firm Juniper Capital Partners.
After undergoing renovations, the property reopened as Virgin Hotels Las Vegas earlier this year.