MGM Resorts to sell Mirage Hotel & Casino Ops to Hard Rock Intl for $ 1.08 billion

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By Maria Armental

MGM Resorts International has announced that it will sell the Mirage Hotel & Casino operations to Hard Rock International for $ 1.08 billion.

Under the terms of the agreement, MGM Resorts will retain the name and brand The Mirage and grant it to Hard Rock, royalty-free, for a period of up to three years.

Hard Rock has announced plans to build an iconic hotel in the shape of a guitar.

Hard Rock and Vici Properties Inc., which will own the property once its acquisition of MGM Growth Properties LLC closes, have entered into a long-term lease and are discussing a $ 1.5 billion redevelopment plan for the property, Vici said.

MGM Resorts general manager Bill Hornbuckle, who was part of the team that opened the Mirage in 1989, said the deal was a milestone for MGM Resorts and for Las Vegas.

“The monetization of our entire real estate portfolio, along with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the company with a fortress balance sheet, a leading portfolio and significant financial resources for pursue our strategic goals, “MGM president Paul Salem said in a statement.

Las Vegas-based MGM Resorts has sold some assets, including real estate assets, to focus on new business areas such as sports betting, entertainment and casino development in Japan.

The company posted a profit of $ 1.12 billion for the first nine months of the year, as revenue jumped 80% to $ 6.62 billion as the casino’s revenue more than doubled from compared to the comparable nine-month period a year earlier.

MGM Resorts acquired the 77-acre property, located in the heart of the Las Vegas Strip and known for its 90-foot side volcano, in 2000.

MGM Resorts’ Las Vegas Strip portfolio also includes the Bellagio, MGM Grand Las Vegas, and Mandalay Bay.

Write to Maria Armental at maria.armental@wsj.com

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