Following a purchase agreement
between the Rank Group and Florida Seminole Indians for Rank's Hard Rock
International Hotel and Casino chain, the Seminole tribe has announced their
intentions to expand the chain even more with 25 to 50 new Hard Rock hotels in
the U.S. over the next ten years. Putting up $965 Million for the deal with Rank
Group, the Seminole Tribe certainly has maxed out their investment, which some
financial analysts think may be too much for the tribe to repay, considering the
costs derived from the construction of their casinos.
The Seminole Hard Rock Casino in
Hollywood, Florida, along with the Orlando Hotel and Tampa Hard Rock Casino and
Hotel account for a major portion of Hard Rock International's revenue (the
hotels alone accounted for approximately 30% of the company's $68.3 million in
profit for the year 2005). With a 36% increase in revenue from Florida Indian
casinos in 2005 resulting in a $1.3 billion/year industry, the Seminole Tribe is
certainly in a good position to repay all of their outstanding debts, which
Standard & Poor's confirmed by validating the tribe's financial flexibility.
Seminole tribe spokesman, Gary
Bitner, said the tribe will definitely be helping the Hard Rock chain to thrive
and continue growing. Keeping all 124 Hard Rock cafes in business in over forty
different countries, the Seminole's will be putting most of their investment
energy into expanding the hotel/hospitality side of the chain and meeting their
goal of 25 to 50 new hotels in the next ten years. Bitner says the tribe will
also be taking into consideration a more modern look for Hard Rock, appealing to
the younger generation not so easily enamored by the fifties rock music style
which Hard Rock was founded upon.