Seminole tribe of Florida buys the Hard Rock Casino Chain
The Seminole Tribe already operates Hard Rock-brand hotels and casinos in Tampa
and Hollywood, Florida.
The Seminole tribe of Florida agreed to buy the Hard Rock Cafe restaurant-and-casino chain
from a British gambling-and-leisure company for $965 million in Dececember of 2006.
Rank Group said it's selling the 35-year-old business, which it has had on the block since
July, to concentrate on U.K. gambling. Through its 124 cafes, six hotels, and two casinos,
the rock memorabilia-themed chain posted $70 million in operating profit on $500 million
in revenue last year. Same-store sales at Hard Rock climbed 6% this year, with food and
beverage sales up 7% and merchandise sales up 5%, Rank Group said.
The deal won't include the Hard Rock hotel and casino in Las Vegas, which was sold to
boutique lodging operator Morgans Hotel Group Co., of New York, for $770 million in cash.
The Seminole Tribe already operates Hard Rock-brand hotels and casinos in Tampa
and Hollywood, Fla.,
and in the past two years has become the dominant gambling force in Florida, according to
a report in The Wall Street Journal.
The Seminoles have had contentious relations with Florida officials over the tribe's
attempts to install full Las Vegas-style casino gambling at their casinos. The tribe also
has been involved in litigation and has been a target of the Internal Revenue Service,
which has stepped up its examination of tax-free bonds used by the Seminoles and tribes in
California to build casinos, The Journal reported.
The tribe issued $415 million of tax-free bonds to build the Tampa and Hollywood casinos,
which the IRS deemed illegal, according to the report. In October 2005, the tribe said it
would issue $730 million in bonds to pay off the original tax-free bonds and consolidate
debt, the Journal reported.
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