Las Vegas Hard Rock Cafe Hotel and Casino set to double in size

14.03.2007, Lesen Sie hier den Bericht über «Las Vegas Hard Rock Cafe Hotel and Casino set to double in size»

Las Vegas: Boutique hotel developer Morgans Hotel Group Co and DLJ Merchant Banking Partners said they would begin a $750 million expansion of the iconic Hard Rock Hotel & Casino in Las Vegas, more than doubling the number of rooms and adding casino, retail and meeting space.

The overhaul will add 550 hotel rooms and 400 suites in two separate towers, as well as a new spa and health club, pool area, several restaurants and bars, and a new nightclub. "We absolutely are going to retain the boutique feel of it, but we're doing that in the context of adding rooms," said Morgans chief executive Ed Scheetz.

The development will use eight acres of an adjacent 23-acre (9.3 hectares) land parcel that Morgans acquired from the property's founder, Peter Morton, in a $770 million deal announced last May. Plans for the rest of the space are still in the works, Scheetz said.

Necessary upgrade Morgans' purchase of the Hard Rock included the rights to Hard Rock intellectual property in Australia, Brazil, Israel, Venezuela and many areas of the United States west of the Mississippi River. It is separate from the Seminole Tribe of Florida's $965 million purchase of Hard Rock cafes, hotels, casinos and music memorabilia from The Rank Group, which acquired most of the chain from brand co-founder Morton in 1971. Scheetz said the upgrade was necessary to keep pace with its young clientele as they age and demand better services. "By adding some of these amenities and these rooms we're able to serve people that love to stay there but today don't necessarily find the room product all that appealing or find all the amenities up to the level they can get elsewhere," he said.

DLJ is funding $150 million of the equity for the upgrade, while another $600 will be financed with debt. Morgans said it has the option to add equity to the expansion. Renovations to the existing structures will begin immediately. CIBC World Markets analyst David Katz said the expansion announcement was "generally neutral" for Morgans shares, which rose 31 cents, or 1.7 per cent, to $18.95 on Monday.

New development will have 1,500 rooms When it is complete in mid-2009, the Hard Rock, about a mile east of the Las Vegas Strip, will have about 1,500 rooms and more new elements than exist currently. It is also increasing the size of its concert venue, the Joint. The expansion, to begin late this year, comes amid several multibillion-dollar casino developments on the Strip set for completion from later this year to 2010.

Über Hard Rock Hotel and Casino (ab 2020 Virgin Hotels Las Vegas):

The Hard Rock Hotel and Casino Las Vegas was located in Paradise, Nevada, and opened in 1995. It offered 646 hotel rooms and a 2,800 m² casino area. The property was known for its vibrant pool area, exclusive nightclub Vanity, and its appeal to a younger audience. In February 2020, the Hard Rock Hotel closed to undergo renovations and rebranding. The facility was acquired by Virgin Hotels, with plans to reopen in the fall of 2020 as Virgin Hotels Las Vegas.

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