ADVERTISEMENT

Seminole tribe in Hard Rock deal

Competition

British entertainment company Rank Group has agreed to sell its Hard Rock Cafe chain to an American Indian tribe for €725.3 million (£490 million).

There are Hard Rock outlets are in 45 countries. The business is being bought by the Seminole tribe of Florida, which already runs Hard Rock-branded hotels and casinos in Tampa and Hollywood. The Hard Rock business made a pre-tax profit of £35 million in 2005 and has 132 outlets worldwide. Rank will now focus on online and phone betting, casinos and bingo clubs. It has sold off a number of leisure businesses in recent years, including Butlin's, Warner Holidays, Odeon Cinemas, Pinewood Studios and pub chain Tom Cobleigh.

Rank said it would pass £350 million of the sale proceeds to shareholders via a special dividend. "Today's announcement sets a clear strategic course for Rank as a focused gaming business," said chief executive Ian Burke. "We have established clear plans to capitalise on the changes taking place in UK gaming." The 12,000-strong Seminole tribe has lands in Oklahoma and Florida, and its main business interests are in tobacco, tourism and gambling

The Florida Seminoles had relied on cattle, citrus fruits and federal loans for economic survival until the late 1970s, when they opened their first bingo hall and tax-free tobacco store. The tribe now runs two massive Hard Rock hotels and casinos on two of its reservations in Florida and has gaming businesses on three other sites. It is the only American Indian tribe never to have signed a peace treaty with the United States. (BBC News)

ADVERTISEMENT

Czech economic confidence weakens in November Analysis

Czech economic confidence weakens in November

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

New Jewish cultural hub opens in Budapest City

New Jewish cultural hub opens in Budapest

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.