MGM Resorts International announced Monday that it will sell the Mirage hotel and casino in Las Vegas to Hard Rock International for about $1.08 billion in cash.
The transaction will see the gaming juggernaut relinquish ownership of the famed Las Vegas hotel after more than two decades.
"This purchase represents a watershed moment for MGM Resorts and Las Vegas," stated Bill Hornbuckle, president and chief executive officer, MGM Resorts International.
According to a Monday news release, Hard Rock International is set to acquire the Mirage's operations, subject to regulatory approvals and other usual closing conditions. Hard Rock International has announced plans to construct a guitar-shaped hotel on the Las Vegas Strip.
MGM Resorts acquired The Mirage in 2000 after it debuted in 1989. The hotel is well-known for its entertainment activities and a 90-foot-tall volcano on the Strip.
The transaction is planned to finalize in the second half of 2022 and is estimated to generate net cash proceeds of about $815 million after taxes and fees for MGM Resorts.
The firm will keep the Mirage name and brand, licensing them royalty-free to Hard Rock for up to three years while it finalizes its rebranding plans.
MGM Resorts was forced to close its entertainment locations in 2020 during the pandemic's early phases, before reopening them under tight safety precautions.
"The monetization of our entire real estate portfolio, combined with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the company with a fortress balance sheet, a premier portfolio, and significant financial resources to pursue our strategic objectives," said Paul Salem, chairman of the board of directors of MGM Resorts.
This is not the first time the Hard Rock brand has established a presence in the Sin City.
Previously, a Hard Rock Hotel operated east of the Strip, but Brookfield Asset Management sold it in 2018 to billionaire Richard Branson's Virgin Hotels and partners.
The facility relaunched as Virgin Hotels Las Vegas earlier this year following extensive renovations.
Hard Rock International has hinted at expanding its portfolio to the Strip, having acquired from Juniper Capital Partners the rights to the Hard Rock name and related trademarks in Las Vegas last year.
MGM Resorts acquired The Mirage in 2000 after it debuted in 1989. MGM Resorts retained BofA Securities and PJT Partners as financial advisors and Weil, Gotshal & Manges LLP as legal counsel to finalize the Mirage deal.
