For more than 30 years, an iconic faux volcano has been blowing its top at the MGM Mirage in Las Vegas. Soon, the hourly eruptions will come to an end.
Hard Rock International, which recently bought the Mirage in a billion-dollar deal, will tear down the volcano as part of a comprehensive renovation of the Strip casino. The Florida-based operator, run by the powerful Seminole Tribe, will pay MGM Resorts $1.08 billion for the property, giving it a showplace on the Las Vegas Strip.
The company plans to build a guitar-shaped hotel tower in front of the property, as well as other renovations, such as a live music venue, reported Bloomberg News. Its partner, a real estate investment trust, has earmarked up to $1.5 billion for the remodeling. The fate of some older attractions, such as a Beatles-themed Cirque du Soleil show, have yet to be determined.
“It’s a massive redo,” said Hard Rock CEO Jim Allen.
Hard Rock will lease the Mirage name royalty-free for three years. MGM expects to net $815 million after taxes and fees when the sale closes in the second half of next year, according to a statement.
The deal represents a major expansion for the Hard Rock brand, which is owned by Florida’s Seminole tribe. There was a Hard Rock casino located off the Strip for a number of years that is now owned by Virgin Hotels. The company has for some time been looking for a casino on the Strip, the center of Las Vegas nightlife.
The Mirage, built by casino mogul Steve Wynn, opened in 1989. It’s known for the volcano out front that erupts nightly, as well as its dolphin and tiger attraction. MGM is in the process of acquiring the higher-end Cosmopolitan Las Vegas, and CEO Bill Hornbuckle has said he wants to reduce the company’s exposure to Las Vegas. MGM is the largest operator of casinos in America’s gambling capital.
Hard Rock will pay rent to MGM Growth Properties, a real estate investment trust that owns the Mirage land. MGM Growth is in the process of merging with Vici Properties.
