The Mirage, the iconic integrated resort Steve Wynn introduced to Las Vegas in 1989, will change hands by the end of December to tribal ownership, which will transform the property.
The sale of The Mirage’s operations to the Seminole Tribe of Florida and its Hard Rock International subsidiary starts the regulatory approval process Wednesday when the Nevada Gaming Control Board addresses the application. The Nevada Gaming Commission will hold its own hearing on Dec. 22.
MGM Resorts International is selling the operations of the casino for $1.075 billion in cash. Under the deal, Hard Rock will enter a long-term-lease agreement with VICI Properties that starts at a base rent of $90 million a year.
The tribe anticipates investing more than $1 billion to upgrade what will eventually be rebranded as the Hard Rock Las Vegas with a guitar-shaped hotel. No issues are expected that would hold up the transaction.
“The Seminole Tribe could not have found a better property on Las Vegas Boulevard to purchase and rebrand as a Hard Rock Casino-Hotel,” said Andrew Klebanow, principal at C3 Gaming. “The Mirage remains one of the best designed and best built casino properties in North America. It can easily accommodate a full renovation and rebranding.”
Brendan Bussmann, managing partner of B Global, said it will be good to bring the Hard Rock brand back to Las Vegas after the Hard Rock Casino closed in 2020 and was converted to Virgin Hotels Las Vegas under its current ownership.
“While it’s owned by the Seminole Tribe, there’s probably not a more commercial entity run by tribes than Hard Rock,” Bussmann said. “It shows how tribes have successfully competed against commercial entities.”
The Seminoles are the first tribe to operate on the Strip and join the San Manuel Band of Mission Indians in Las Vegas; the tribe purchased the Palms a year ago and opened in April. In 2021, the Mohegan Sun started operating the casino at Virgin Hotels.
“Seminole’s Hard Rock’s entry into the Las Vegas market brings with it a sizable database,” Klebanow said. “With over a dozen casinos across North America, Hard Rock has amassed a large database of customers that rival those of the world’s largest casino corporations. Those customers will eventually receive attractive vacation offers for the Las Vegas property and will make a significant impact on Las Vegas visitation and gaming spend.”
Josh Swissman, founder of The Strategy Organization, said the deal is a culmination of three great components for Las Vegas.
“The Mirage is the property that changed the face of the Strip and made it look as it is today,” Swissman said. “You combine that with the Hard Rock brand that is pretty storied in the gaming space in Vegas, albeit not on the Strip. Then you add the Seminole tribe, one of the biggest out there in gaming revenue. It’s all positive. I think when a new operator comes onto the Las Vegas Strip, they bring new ways of doing business with promotions, marketing, and new offerings for customers. It keeps the competition on their toes.”
Quite a few changes are coming.
Klebanow said the Seminole Tribe had previously announced that the Mirage volcano will be removed to make way for their iconic guitar hotel tower. The volcano has long served as a tool to draw pedestrians into the casino from the sidewalk, but it’s no longer the best use of Strip frontage.
“A 750-room tower and expanded casino, dining, and shopping arcade, all generating incremental revenue, are a far better use of that real estate and a better way to attract passersby,” Klebanow said.
While a timeline for full conversion and rebranding has not been announced, Klebanow said it will probably take a year to renovate the hotel’s 3,000 rooms and main casino. The Guitar Tower will probably require 30 months to complete, once the shovel goes into the ground, and “rest assured, it will be an iconic structure, visible along the entire Strip corridor.”
In terms of interior enhancements, Klebanow said all of the restaurants will be remodeled and rebranded with the Seminole Hard Rock’s brands, including Council Oak Steakhouse, Kuro, and the Hard Rock Café.
“Room renovations and a remodel of public spaces will follow the Hard Rock playbook,” Klebanow said. “Expect to see a lot of rock ’n’ roll memorabilia and hotel rooms that will be more contemporary and rich in technology.”
Bussmann said the renovation will likely mean some of the property remains open and some will be closed off to the public. It’s difficult to operate a property while it’s open, but the tribe wants to maintain cash flow. “We’ll know when they explain that to the board on Wednesday.”
Thanks to the “genius of Steve Wynn,” The Mirage set the tone in Las Vegas for turning the “hotels with casinos into fully integrated resorts,” Bussmann said. Today, however, a refresh of the 33-year-old property is needed, especially in terms of the image, pulse, and vibe of Hard Rock, he added.
“I think a different demographic will go to a Hard Rock versus a Mirage,” Bussmann said. “They’re people more into the music and entertainment that drive a party crowd. You have a ton of assets there with the meeting space and events that will continue to bring in the leisure and business customer.”
