Brand value
Brand value
Seminole Tribe of Florida buys extensive Hard Rock business
The Seminole Tribe of Florida and British hotel and casino company Rank Group PLC announced in mid-December the tribe's purchase of the Hard Rock business for $965 million.
"This is a proud moment for the Seminole Tribe of Florida and for all Indian tribes," Seminole tribe Chairman Mitchell Cypress said in a statement. "It is also an opportunity for the Seminole tribe to diversify its business operations and help a very successful company to achieve even greater growth."
The deal includes four Hard Rock hotels, two Hard Rock casino-hotels, 124 Hard Rock cafes in 40 countries worldwide, two Hard Rock Live! concert venues, stakes in three unbranded hotels and one of the world's largest collections of rock 'n' roll memorabilia-about 70,000 pieces.
This would be added to the Seminole tribe's existing holdings of two Hard Rock hotel-casinos-and five other casinos-in Florida. More than 90 percent of the tribal budget comes from gambling revenue.
The sale, which is subject to shareholder approval and scheduled to close in March, does not include all of the Hard Rock brands. Rank retained the Hard Rock Casino in London, England and intends to change the property to the Rank Gaming brand. Additionally, Morgans Hotel Group Co. retains the Hard Rock Hotel in Las Vegas, which it purchased in May for $770 million. The deal also excludes Morgans' Hard Rock intellectual property rights in Australia, Israel, Venezuela, Brazil and many areas of the United States west of the Mississippi River.
Rank said the sale will allow it to focus on growing its gambling side of business. Chief Executive Ian Burke said the company would return $690 million of the sale proceeds to shareholders in a special dividend of $1.28 per share.
Rank said that last year Hard Rock posted revenue of $493 million, with profit before taxes and interest of $68.6 million
-Darby Harris
Seminole Tribe of Florida buys extensive Hard Rock business
The Seminole Tribe of Florida and British hotel and casino company Rank Group PLC announced in mid-December the tribe's purchase of the Hard Rock business for $965 million.
"This is a proud moment for the Seminole Tribe of Florida and for all Indian tribes," Seminole tribe Chairman Mitchell Cypress said in a statement. "It is also an opportunity for the Seminole tribe to diversify its business operations and help a very successful company to achieve even greater growth."
The deal includes four Hard Rock hotels, two Hard Rock casino-hotels, 124 Hard Rock cafes in 40 countries worldwide, two Hard Rock Live! concert venues, stakes in three unbranded hotels and one of the world's largest collections of rock 'n' roll memorabilia-about 70,000 pieces.
This would be added to the Seminole tribe's existing holdings of two Hard Rock hotel-casinos-and five other casinos-in Florida. More than 90 percent of the tribal budget comes from gambling revenue.
The sale, which is subject to shareholder approval and scheduled to close in March, does not include all of the Hard Rock brands. Rank retained the Hard Rock Casino in London, England and intends to change the property to the Rank Gaming brand. Additionally, Morgans Hotel Group Co. retains the Hard Rock Hotel in Las Vegas, which it purchased in May for $770 million. The deal also excludes Morgans' Hard Rock intellectual property rights in Australia, Israel, Venezuela, Brazil and many areas of the United States west of the Mississippi River.
Rank said the sale will allow it to focus on growing its gambling side of business. Chief Executive Ian Burke said the company would return $690 million of the sale proceeds to shareholders in a special dividend of $1.28 per share.
Rank said that last year Hard Rock posted revenue of $493 million, with profit before taxes and interest of $68.6 million
-Darby Harris
