MGM Resorts selling The Mirage

An agreement has been reached between MGM Resorts and Hard Rock International for MGM’s Las Vegas Mirage hotel and casino operations to change hands.

Hard Rock has agreed to pay $1.075bn in cash for the famous casino on the Las Vegas Strip, which is 17 times the multiple of its 2019 EBITDA.

Bill Hornbuckle, MGM CEO, said: “As part of the team that opened The Mirage in 1989 I know first-hand how special it is.”

Paul Salem, his chairman, added: “The monetisation of our entire real property portfolio, together with the addition of City Center and our agreement to acquire The Cosmopolitan of Las Vegas, will position the company with a fortress balance sheet.”

The calendar year 2019 saw The Mirage hit EBITDA of $154m. The property will actually be owned by VICI post-transaction who will negotiate a new lease agreement with Hard Rock.

The Mirage was acquired by MGM in 2000 and is best known for its kerbside volcano that erupts periodically throughout the day.

MGM will retain The Mirage name and brand, licensing it to Hard Rock for a maximum of three years before the property is rebranded. The deal is expected to close in the middle of 2022.