Company buys back IP rights
Hard Rock International has bought back the intellectual property (IP) rights for the Hard Rock brand in Las Vegas. The deal was announced by the company on Wednesday in a press release, with chairman Jim Allen saying this will provide an “opportunity of enhancing our presence in Las Vegas.”
the ability to develop, own, and operate a resort or casino in the area
The global operator will now have the ability to develop, own, and operate a resort or casino in the area that is Hard Rock-branded, which was not previously the case. As part of the deal, Hard Rock International will also obtain full rights to all merchandise, signage, and memorabilia, as well as the IP for entertainment and restaurants.
The agreement was reached with the Juniper Capital equity firm, which had purchased the Hard Rock Hotel and Casino from Brookfield Asset Management in 2018. The original acquisition price was never disclosed.
Analysts react to the news
Market analysts reacted to the news in a positive light, believing that the Hard Rock brand is a perfect fit in the Las Vegas market.
well-positioned to potentially take advantage of some well-priced Vegas Strip assets in the near future
Long-time Vegas marketing executive Josh Swissman spoke about the power of this iconic brand. The Strategy Organization partner said the company’s sharp management team will be well-positioned to potentially take advantage of some well-priced Vegas Strip assets in the near future – an ideal way to attract a younger demographic.
Hard Rock’s profile
Hard Rock International is under the ownership of the Seminole Tribe of Florida and has 262 locations in 76 different countries. This includes numerous casinos in the United States.
Chairman Jim Allen had spoken about the possibility of purchasing a Las Vegas Strip property in October 2019. The company had lost its hold on the Hard Rock Las Vegas in 2011 as a result of financial difficulties stemming from the global recession.
The former Hard Rock Hotel in Vegas closed in February as it was undergoing extensive renovations. The plan is for the property to reopen towards the end of 2020 under the Virgin Hotels brand.