Hard Rock Vegas Sold!!

Hard Rock Vegas Sold for $770 Million In Cash

According to sources connected with the deal, Morton will take home about $730 million from this transaction.
"It was just time to take the chips off the table," Morton told The Associated Press. "I'm looking to do some different things in my life. That was it. I've been involved with the Hard Rock for 35 years. As you know, the market is at a peak right now and I got a great offer. I just sort of felt there came a point in my life where I wanted to do more with my life and re-evaluate things. I want to do some different things."

The deal includes the right for Morgans to utilize the "Hard Rock Hotel" and "Hard Rock Casino" trademarks in connection with casinos and hotel/casinos in specified locations, as well as certain other intellectual property such as merchandising and retail rights. Rumors of a sale by Morton began earlier this year when plans to build condos and other amenities on the site were suddenly nixed.

"The Hard Rock is already an extraordinary landmark and we are pleased to be able to acquire a property that has so much expansion potential,” said W. Edward Scheetz, President and Chief Executive Officer of Morgans. “We believe we can further enhance it by applying [Morgans’s] management infrastructure, marketing approach and reservations system. This hotel, along with our established and renowned Delano and Mondrian brands, will allow us to dominate the Las Vegas market at multiple price points by offering the style, innovation, and service with which our brands are synonymous."

The Hard Rock Hotel & Casino is comprised of the 11-story Hard Rock Hotel tower with 647 guest rooms; a 30,000 square foot casino; a beach club with a swimming pool selected by the Travel Channel as one of "The Top 10 Pools" in the world; the Body English nightclub; five restaurants, including the world famous Nobu; three cocktail lounges; several retail stores; and an 8,000 square foot spa, salon and fitness center. Its concert hall "The Joint" regular features top acts such as the Rolling Stones, Coldplay, Alicia Keys, David Bowie, Snoop Dogg and Nine Inch Nails. The property was built for $80 million and expanded in 1999.

This is not the only deal Morgans has on the table in the Las Vegas market. It’s also developing two properties in a joint-venture partnership with Boyd Gaming in their newest project Echelon. Morgans will add two if its most renowned brands -- Delano and Mondrian -- to the complex, giving Morgans about 1,600 Las Vegas hotel rooms by 2010.

Buying an established brand named casino in the Las Vegas market is widely seen as a smart move since the purchase price is far below the typical amount spent to build modern day temples of gaming. Many projects stretch into the billions of dollars, including current projects like the $1.6 billion Palazzo, the $2.0 billion Cosmopolitan and the $7 billion MGM Mirage City Center resort.
Before Morgans can operate the casino, they must get a gaming license. Sources have said it is possible they may extend their relationship with Boyd to attain this license.

© Copyright 2006 Online Casino Crawler This material may not be published, broadcast, rewritten, or redistributed.