MGM Resorts International has closed on its sale of the operations at The Mirage Hotel & Casino to Hard Rock International for $1.075 billion in cash.
MGM Resorts announced its intentions to sell operations at The Mirage in November 2021, and Hard Rock revealed it was the buyer a month later.
Hard Rock will operate the property under The Mirage name through a three-year license from MGM Resorts until its renovation and rebranding to the Hard Rock Hotel & Casino Las Vegas, according to news releases from both companies. As part of the propertywide renovation, the resort casino will gain a guitar-shaped hotel tower adjacent to Las Vegas Boulevard.
The company expects to release details about the rebranding and new design of the resort at the end of 2023.
Operations will continue as normal with no disruption to guests or group organizers, and its entertainment and dining options will continue as before, Hard Rock said in its release. There are no plans to close the property or lay off any employees.
The sale of the operations at The Mirage represents another important step in the pursuit of MGM Resorts’ long-term strategic objectives, said Jonathan Halkyard, chief financial officer and treasurer at MGM Resorts, in MGM Resort’s release.
"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,” he said.
For the 12 months ending Dec. 31, 2019, The Mirage reported adjusted property earnings before interest, taxes, depreciation and amortization of $154 million. At the closing of the deal, MGM Resorts’ master lease agreement with gaming real estate investment trust Vici Properties will see its annual rent reduced by $90 million.
Vici owns the real estate for the Mirage through its acquisition of hotel and gaming REIT MGM Growth Properties, a spinoff from MGM Resorts, for $17.2 billion. It is entering into a new lease agreement with Hard Rock.