In a recent CNBC interview, Hard Rock International Chairman Jim Allen said it’s unlikely business will be “ramping back up” in the near future as Covid-19 keeps casinos, hotels and restaurants closed. “There’s going to be a real challenge, especially here in the United States, as far as ramping the business back up. We’re planning on that taking a year,” Allen stated.
He noted the Hard Rock Atlantic City primarily attracts regional clientele. However, with its location in the New York area, the epicenter of the U.S. outbreak, Allen said, “We’re very concerned about that business as we try to navigate through the summer, which is traditionally the time of year when they have their most profitable months.”
Florida casinos also attract regional business, but they’re the most profitable locations in the Hard Rock family. “While we see a ramp up, when we see the beaches in Jacksonville as crowded as they were, that seems like that’s kind of exciting. But I think that’s just the initial get-out-of-the-house push” and doesn’t mean sustained business will happen quickly, he added.
Outside the U.S., Allen said, “We reopened the Shenzhen Hotel in a global city in China. Beautiful property. Occupancy is right now at 12 percent,” an example of the challenges the company faces in other parts of the world. “If you look at the Hard Rock Cafe in Times Square in New York City, a restaurant that does $50 million in actual sales, that’s all tourism. … London is tourism.” But tourism has been practically wiped out by the pandemic, Allen said.
