Vegas Hard Rock casino sells for $770m

2007-02-06 13:00:50

The Morgan Hotel Group MHG) has bought the Hard Rock casino in Las Vegas with financial partners DLJ Merchant Banking.

Approximately a third of the funds have come from MHG, and DLJMB is finding the remaining two thirds and up to an additional $150 million for expansion costs.

Mortgage financing provided the additional costs under a credit agreement signed as part of the joint business deal.

Retail, food, beverage and hotel sectors, along with entertainment will be managed by MHG, but the casino itself will be managed by Golden Gaming.

The companies plan to encourage "a new level of sophistication" at the "premier boutique property" in Vegas, enticing wealthy clientele who might be tempted to gamble.

Ed Scheetz, the president and CEO of MHG said: "We believe that the addition of the Hard Rock to our unique portfolio of properties will create value for all our shareholders and be a strong contributor to MHG's long-term growth and profitability."

The Morgan Hotel Group currently operates ten luxury hotels across the United States and in London.


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