MGM Resorts has sold the Mirage hotel and casino to Hard Rock International for $1.075 billion in cash.
The deal will see the gambling giant give up the iconic Las Vegas property after 21 years of ownership. “This transaction is a significant milestone for MGM Resorts and for Las Vegas,” Bill Hornbuckle, CEO and president, MGM Resorts International, said in a statement.
The iconic Mirage property is best known for its 90-foot Strip-side volcano. Under the terms of the agreement, MGM Resorts will retain the Mirage name and brand and will license it to Hard Rock royalty-free for up to three years as it finalizes plans to rebrand the property.
The casino giant expects net cash proceeds from the sales agreement after taxes and estimated fees to be around $815 million. The transaction is expected to close in the second half of 2022, subject to regulatory approvals and other closing conditions.
MGM Resorts had to shutter its entertainment properties amid the early stages of the pandemic in 2020, before reopening properties under strict safety protocols.
“The monetization of our entire real property portfolio, together with the addition of CityCenter and our agreement to acquire The Cosmopolitan of Las Vegas, will position the company with a fortress balance sheet, premier portfolio and significant financial resources to pursue our strategic objectives,” Paul Salem, chairman of the board of directors of MGM Resorts, said in a statement.
The Mirage opened in 1989 and was acquired by MGM Resorts in 2000. BofA Securities and PJT Partners served as financial advisors and Weil Gotshal & Manges served as legal counsel to MGM Resorts to complete the Mirage sale.
