Hard Rock Cafe sold to Native Americans

[voivod]

LONDON, England (Reuters) -- Britain's Rank Group said on Thursday it had agreed to sell its Hard Rock cafe and casino business to the Seminole Tribe of Florida for $965 million.

Rank said the disposal would turn it into a pure gaming group, focusing on UK casino liberalisation from next year.

Following the sale it intends to return £350 million ($688 million) to shareholders by way of a special dividend, equivalent to 65 pence a share.

"Our strong portfolio of gaming assets will enable us to take advantage of the long-term growth in the gaming market," said Chief Executive Ian Burke.

Seminole Gaming Chief Executive Jim Allen told Reuters the group intended to expand the hotel and cafe business through key gateway cities around the world, and would expand Hard Rock casinos internationally, but not in Britain.

"We realise the power and longevity of this brand," he said.

Rank has shed British household names like Butlins holiday camps, Odeon cinemas and Pinewood film studios in a drive to get rid of its image as an old-fashioned conglomerate.

Hard Rock's portfolio includes 124 Hard Rock Cafes, 4 Hard Rock hotels, 2 Hard Rock casino-hotels, 2 Hard Rock Live! concert venues and equity stakes in three unbranded hotels.

"There was a significant amount of interest," Burke told a conference call.

Seminole Gaming's Allen said gaming was the main revenue earner for the tribe, which also produces citrus, cattle and tobacco.

Rank shares fell 3 percent to 258 pence by 0903 GMT, valuing the group at around 1.4 billion pounds.

One London analyst, who declined to be named, said the price of the deal was slightly disappointing and there were concerns from Rank's trading statement that the UK casino market faced oversupply.

Rank said group revenues had grown slightly in the 48 weeks to Nov. 26, but Scotland's smoking ban in March had cut bingo revenues there by 15 percent.

"We do expect a similar impact in England and Wales," Burke said of a smoking ban planned there from the middle of next year.

Rank also said it had appointed Peter Johnson, chairman of Inchcape, as its new chairman to succeed Alun Cathcart who retires from the board at the end of February.

[twonabomber]

wow. maybe the food will get worse...if that's possible.

[Wickett]

considering at least two of the HR hotel and Casinos are owned by Indians, this was probably inevitible. From a business standpoint, it will be interesting to see how they try to incorporate the brand. The hotels and Casinos kept this brand going after the other "theme" eats died out.

[chefcraig]

Good. The Seminole indians cut an appallingly bad deal here in Hollywood Florida, virtually guaranteeing themselves ZERO true and outright profit for some 20-35 years, at that time they'd get the joint. Just in time to completely redo it, as the surrounding area is a disaster traffic, sewage and water-wise.

Those responsible for this little agreement are (fortunately) no longer at the base of power.

I wish them well in the endeavor, and I mean that in all seriousness. Good for them.

[smithjc]

Wow that deal sounds pretty rank.

(sorry, I couldn't resist) Shutting up now.

[Menlow]

Good. The Seminole indians cut an appallingly bad deal here in Hollywood Florida, virtually guaranteeing themselves ZERO true and outright profit for some 20-35 years, at that time they'd get the joint. Just in time to completely redo it, as the surrounding area is a disaster traffic, sewage and water-wise.

Those responsible for this little agreement are (fortunately) no longer at the base of power.

I wish them well in the endeavor, and I mean that in all seriousness. Good for them.

You wouldn't catch me at the Hollywoond Hard Rock at any time over the weekend. Not unless I want to wait two hours to park in Pembroke Pines. I can only imagine how much worse it'll be when they eventually get real slots.

[Wickett]

You wouldn't catch me at the Hollywoond Hard Rock at any time over the weekend. Not unless I want to wait two hours to park in Pembroke Pines. I can only imagine how much worse it'll be when they eventually get real slots.

only one of the reasons why I used to walk