MGM Resorts International has completed its long-awaited sale of the operations of The Mirage Hotel & Casino in Las Vegas to Hard Rock International for $1.075 billion in cash.
“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,” said Bill Hornbuckle, CEO & President, MGM Resorts International. “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.”
“The closing of this transaction represents another important step in the pursuit of our long-term strategic objectives,” said Jonathan Halkyard, CFO & Treasurer, MGM Resorts International. “We plan to use the proceeds from this transaction to further advance our capital allocation strategy which includes maintaining a strong balance sheet, pursuing targeted growth opportunities and returning cash to our shareholders.”
MGM Resorts’ master lease that currently includes The Mirage property will be amended to reduce the annual rent by $90 million. The company said it expects net cash proceeds after taxes and estimated fees to be approximately $815 million.
Under the terms of the agreement, MGM Resorts will retain The Mirage name and brand, licensing it to Hard Rock royalty-free for a maximum period of three years while it finalizes its plans to rebrand the property.
The MGM Resorts portfolio encompasses 33 hotel and gaming destinations globally, including some of the most recognizable resort brands in the industry. The Company’s 50/50 venture, BetMGM, LLC, offers U.S. sports betting and online gaming through market-leading brands, including BetMGM and partypoker.MGM Ressorts is currently pursuing targeted expansion in Asia through the integrated resort opportunity in Japan. Through its “Focused on What.’
.Rendering Courtesy of MGM Resorts International