The Seminole Tribe of Florida is set to make a significant impact on the Las Vegas Strip with the acquisition of The Mirage Hotel and Casino. Hard Rock International, owned by the Seminole Tribe, announced a $1.08 billion deal to purchase the operating assets of The Mirage from MGM Resorts International. This monumental purchase will pave the way for a new era for the iconic Las Vegas property.
Hard Rock’s Vision for The Mirage in Las Vegas
Pending regulatory approvals and anticipated to close in the second half of 2022, the deal will allow Hard Rock to eventually construct a guitar-shaped hotel on the Las Vegas Strip. This new structure will mirror the brand’s flagship location in Hollywood, Florida, further solidifying Hard Rock’s presence in the entertainment capital of the world. Hard Rock Chairman Jim Allen stated that the fully integrated resort will cater to meetings, groups, tourists, and casino guests from around the globe, capitalizing on its central Strip location spanning almost 80 acres.
Details of the Hard Rock Casino Las Vegas Deal
The acquisition involves a long-term lease agreement with VICI Properties Inc., who are acquiring the real estate in a separate $17.2 billion deal with MGM Growth Properties LLC. Hard Rock will pay VICI Properties an annual base rent of $90 million over a 25-year term, with three 10-year renewal options. VICI’s Partner Property Growth Fund has also committed up to $1.5 billion towards the redevelopment of The Mirage, although specific terms are still under negotiation.
A New Chapter for The Mirage and Hard Rock Casino Las Vegas
For MGM Resorts International, the sale represents a significant milestone. MGM originally acquired The Mirage in 2000 for $4.4 billion and expects to net $815 million from this transaction. CEO and President Bill Hornbuckle expressed confidence in The Mirage’s continued success under new ownership. The sale price represents 17 times the property’s 2019 adjusted earnings before interest, taxes, depreciation, and amortization of $154 million. MGM will retain and license The Mirage name and brand to Hard Rock royalty-free for up to three years while rebranding and redevelopment plans are finalized.
This purchase marks another significant move for Hard Rock International, following the 2020 acquisition of the Hard Rock brand rights in Las Vegas from Juniper Capital. It’s a significant return to the city after the original Hard Rock Las Vegas, which the Seminole Tribe had no involvement with, closed in 2020.
The Seminole Tribe’s Growing Presence in Las Vegas
This acquisition positions the Seminole Tribe as the third Native American tribe to operate a commercial casino in Las Vegas. The Mohegan Tribe operates a casino within the Virgin Hotel (formerly the Hard Rock Las Vegas), and the San Manuel Band of Mission Indians is acquiring the Palms Casino Resort.
