MGM Resorts to Sell Mirage Hotel & Casino Ops to Hard Rock Intl for $1.08B
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MGM Resorts International said it will sell the operations of The Mirage Hotel & Casino to Hard Rock International for $1.08 billion.
Under terms of the deal, MGM Resorts will retain The Mirage name and brand and license it to Hard Rock, royalty free, for up to three years.
Hard Rock said it plans to build an iconic guitar-shaped hotel.
Hard Rock and Vici Properties Inc., which will be the property owner once its acquisition of MGM Growth Properties LLC closes, have reached a long-term lease, and are discussing a $1.5 billion redevelopment plan for the property, Vici said.
MGM Resorts Chief Executive Bill Hornbuckle, who was part of the team that opened The Mirage in 1989, said the deal marked a milestone for MGM Resorts and for Las Vegas.
"The monetization of our entire real property portfolio, together with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the Company with a fortress balance sheet, premier portfolio, and significant financial resources to pursue our strategic objectives," MGM Chairman Paul Salem said in a statement.
Las Vegas-based MGM Resorts has sold some assets, including real-estate holdings, to focus on new business areas such as sports betting, entertainment and a casino development in Japan.
The company swung to a profit of $1.12 billion for the first nine months of the year, as revenue surged 80% to $6.62 billion, with casino revenue more than doubling from the comparable nine-month period a year earlier.
MGM Resorts acquired the 77-acre property, located at the heart of the Las Vegas Strip and known for its 90-foot Strip-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
