Morgans Hotel Group (MHG) has entered into a non-binding letter of intent with casino operator Golden Gaming regarding the management contract of the Hard Rock Hotel & Casino in Las Vegas.
MHG announced it was to acquire the property from Hard Rock founder Peter Morton in May for US$770m (£418m, 603m euro) and is hoping that Golden Gaming will provide general management services for all gaming activities within the casino for up to two years.
The letter of intent also stated that Golden Gaming will “have the opportunity to make an equity investment of up to US$100m (£54m, 78m euro) in the Hard Rock Hotel & Casino”.
W. Edward Scheetz, president and CEO of MHG, said: “We are pleased that we have reached an agreement with Golden Garming to serve as the licensed casino operator for the Hard Rock.
“Lining up a casino operator was a top priority for us and now we have put into motion a key element of the Hard Rock transition.”
Golden Gaming was formed by Blake Sartini, former chief operating officer of Station Casinos, in 2001 and employs more than 1,300 people in Nevada and Colorado. Details: www.morganhotelsgroup.com
