The volcanic attraction in front of The Mirage Hotel & Casino erupts on July 16, 2024, in Las Vegas, Nevada. Hard Rock International (HRI) will close the resort on July 17, 2024, to begin a construction project to convert the property into the Hard Rock Hotel & Casino and Guitar Hotel Las Vegas by 2027.
Ethan Miller | Getty Images
It’s the end of an era. The Mirage is closing its doors after 35 years to make way for Hard Rock’s new Guitar Hotel.
The latest turnover in Las Vegas marks a new chapter for the destination city, where sports and entertainment are bigger than gambling for tourists.
Hard Rock International President Jim Allen told CNBC that he is humbled and feels fortunate to be rebuilding the legendary all-inclusive resort.
“When Steve and Elaine Wynn opened the Mirage in December 1989, it changed not only Las Vegas, but changed the way people view gaming. It became a real destination,” Allen said.
The Mirage was Wynns first megaresort, the largest hotel in the world at the time. This week, Steve Wynn wrote a tribute to the pioneering property, as reported on Las Vegas Review-Journal.
“In the previous 16 years, no brand new hotels had been built in Las Vegas,” Wynn wrote. “However, in the decade following Mirage’s arrival in 1989, we rushed to double the city’s capacity and became the fastest-growing city in America. To call Mirage a catalyst would be an understatement.”
The theme resorts that followed hearken back to another place and time. Excalibur, Luxor and New York-New York now cater heavily to budget travelers and families.
Paris Las Vegas offers views of a replica of the Eiffel Tower. The Venetian attracts tourists with replica canals and gondolas. Caesars Palace with its replica of Michelangelo’s David set the first standards for theme resorts when it opened in 1966.
A sign at The Mirage Hotel & Casino displays a message thanking workers and the local community on July 16, 2024, in Las Vegas, Nevada. Hard Rock International (HRI) will close the resort on July 17, 2024, to begin a construction project to convert the property into the Hard Rock Hotel & Casino and Guitar Hotel Las Vegas by 2027.
Ethan Miller | Getty Images
But the future lies in luxury touchpoints, access to high-end restaurants, brag-worthy entertainment and high-priced sports packages.
And Hard Rock International has a lot of experience in providing it, in Florida. Atlantic City, New Jersey; New York; – and in 70 countries around the world.
The gaming and entertainment company, owned by the Seminole Tribe of Florida, purchased the Mirage from MGM Resorts in December 2022.
VICI propertiesa gaming real estate investment trust and the largest property owner on the Las Vegas Strip, owns The Mirage buildings and land and says it will work with Hard Rock to bring the new resort to life.
Rendering of the proposed future guitar-shaped hotel tower at the Hard Rock Hotel & Casino Las Vegas.
Credit: Renderings courtesy of Hard Rock International
Hard Rock will model its Las Vegas renovation on the highly successful Guitar Hotel at Seminole Hard Rock Hollywood in South Florida. Throughout the Sunshine State, the Hard Rock enjoys a near monopoly on gambling.
But in Las Vegas, the competition is fierce. Staying relevant on the Strip requires frequent room renovations, facility upgrades and new amenities to attract not only bachelorette parties and girls’ weekends, but also the midweek convention crowd.
On Monday, Susquehanna gaming analyst Joe Stauff wrote: “It looks like this to us MGM is stepping up its investment in Las Vegas to maximize the benefits of positioning its portfolio surrounding all sports venues.”
On the same note, Stauff criticized Caesars for being stingy with its investments in Strip properties and downgrading Caesars stock from neutral to negative.
Caesars is scheduled to release second-quarter earnings on July 30. MGM Resorts International reports a day later.
When the Mirage goes out of business on Wednesday, 3,000 workers will lose their jobs.
Allen told CNBC that he hopes to rehire many of them when the new resort opens. The company plans to reopen in the spring of 2027.
“I think people are going to be blown away with some of the artists we’re already talking about for long-term residencies,” Allen said.
Rendering of proposed future guitar-shaped hotel tower at Hard Rock Hotel & Casino Las Vegas.
Credit: Renderings courtesy of Hard Rock International
While the Hard Rock’s entry on the Las Vegas Strip may provide stiff new competition when it reopens, its closure in the meantime could give its neighbors a boost.
CBRE analyst John DeCree estimates that closing the Mirage will disrupt traffic by nearly a million room nights annually.
The Strip lost another 400,000 room nights a year when the Tropicana closed in April and is slated to be demolished to make way for a new full-service resort and a baseball stadium that would host Major League Baseball’s A’s.
Overall, 4.9% of available rooms are temporarily disappearing as room rates and visits continue to set records.
