This is Bloomberg Business Week with Carol Masser and Jason Kelly on Bloomberg Radio. All right, so hospitality, gaming and we love to talk about all of it, and no one better to talk about it. And really at the center of all that Jim Allen. He's the chairman of hard Rock International, also the CEO of Seminole Gaming, based down in Fort Lauderdale, Florida, here in our Bloomberg Interactive Broker's studio today. Jim, great to have you with us.
Thanks for having us. All right, well, I want to start just before we even get into it, asking you about New Orleans. Obviously that has been top of mind for a lot of people in your business, certainly top of mind for you, specifically what's the latest and what happens next? You know, first thing and most importantly, our prayers go out to the families of the victims and those that were injured, and also the supporting businesses around the site itself. So that is really where our focus
is right now. A major tragedy and we look forward to working with the mayor of the city officials to try to move forward, right and will you ultimately rebuild in New Orleans. We certainly love New Orleans. UM Our Cafe has been there for over twenty years, an amazing site, but certainly we have to work with the local partners and and obviously be respectful to the situation we're in now, right exactly, UM, do you I have you guys that have gotten to the bottom of it in terms of
what happened. No, you know, the site is really still um you know, and it's in a search mode if you will, So no one is really going down that particular path at this time. And as a respect to the victims. All right, so let's talk about the expansion that's happening heavily underway. This is an iconic brand in a lot of ways. You and I were talking about a little bit before we came on air. Uh, the
guitar Hotel. Tell me about that. Well, we are opening the world's for s guitar shaped hotel UM this Thursday, octob really excited about it. Is an iconic structure. Nothing else in the world has ever been designed similar to it, and we look forward to an amazing opening. Well, tell us a little bit about that, and and tell us about kind of what kind of space you're hoping to
create and who you're hoping to attract. It's a one point five billion dollar expansion and hard Rock being one of the most globally recognized brands, this really becomes the flagship when we look at what we do both in the restaurant business, the retail certainly the gaming business online gaming. But this is truly an integrated resort and a true destination, and that really takes us to a whole another level.
All Right, So I gotta talk a little Vegas. Um. You know, you and I were talking again before we came on air. I mentioned that I had stayed at at that property, which is not your property, and that's important because where the hard Rock Hotel and casino once we're that branding is coming off Brandon, I believe is rebranding that that would seem to provide an opening for you. What are your Vegas plans? Yeah, when we actually purchased hard Rock back in two thousand seven, Peter Morton still
owned in Las Vegas. So, um, we look at this as a as a great opportunity for our brand. We certainly recognize the amazing success that the brand has had off strip, but if something comes up in the future, we certainly would look forward to seeing what opportunities may be created in that particular environment. And you would think on strip at this point is that where you'd be looking. I don't think we're looking at this point, but I would say that, you know, as we look at opportunities. Um,
certainly on strip is one of the possibilities. We're hearing Planet Hollywood and Valleys, maybe it for sale any interest? Well, Um, Planet Hollywood's very interesting and obviously the Bally's Corner is certainly one of the more legendary corners on the Las Vegas Strip. But it would be premature for us to say that we want to do something at this time, but certainly down the road, Um, if the transaction with RGIN is completed then and certainly that is one of
the possibilities. There's also the Cosmopolitan. I'm just gonna say that rumor has been out there for quite some time, but no, we're not interested in purchasing the Cosmopolitan. We can go official on that one. Do they do you have more capacity to borrow after all the expansion you've done so far. You know, one of the great things we've been able to do is focus on the balance sheet.
In the history of our industry. We're the only organization that has ever enjoyed an investment grade rating from Moody's Standard and Poor and Fitch simultaneously. We're levered a little around one point five coverages, you know, approaching twenty times. So that is the strength of the organization. So yes, if the right opportunity comes along, we're certainly very competitive in Japan right now. So clearly you know that equity
check will be substantial if we're selected. But you know, if the right opportunity comes along, our balance sheet is obviously incredibly strong with the investment grade ratings, all right, So Jim, as we look across the country, it feels like we're think a moment when especially when it comes to sports betting. You know, a lot of enthusiasm around that, just candidly, a lot of enthusiasm around uh gambling in general.
Where do you go next? Or their states? I mean Illinois, Indiana, I mean are those places where you may be doing more well? You know, we've been selected both in Illinois in Rockford and in Indiana. So there are two projects that we just recently announced that our casino projects, you know, with hospitality and other amenities. Certainly the online gaming business were already in that obviously active in the Atlantic City market,
and the same with sports betting. We definitely believe that both of those sectors on a going forward basis over the next three to five ten years are going to be very important for the growth of the business on a long term basis. Can you talk a bit more about Atlantic City? I was there or was it about a year year and a half are just before hard Rock opened, uh, and was doing one of our shows
down there, I mean Atlantic City. Uh, it's not it's hard not to be impressed by the investment going back in, but we've seen these cycles before and it just seems like a hard nut to crack. Well, I would say
two things. We are incredibly excited about the success that we've had, you know, basically open a little over a year now for I believe it's six months running strong number two in the marketplace, right behind MGMs property to Burgata, so to literally surpass Caesars in Tropicana and Harris and all those other brands gold Nuggets that have been there
for decades. We're very proud of those results. I will tell you we are disappointed that some of the things that we were believe what happened from both the State of New Jersey and and the city of Atlantic City are moving a little slower than what we had hoped for. So we continue to try to work with Governor Murphy to stress the importance, you know, of the size of this market. It's still the second largest gaming market in the United States at two point six billion dollars and
frankly grew double digit last year. But the infrastructure Atlantic City continues to need additional assistance. All right, Jim, only got about third seconds left. You've been in the hospitality business for a long time. You've seen cycles come and go. Where are we when it comes to the consumer right now, the health of the especially the tourist consumer. I would
say caution is probably something that would be advisable. Um, we've basically been on a nine ten year run in the hotel sector here, you know, with multiple hitting fourteen sixteen times. You mentioned the Cosmo, you know, going for guidance of three billion dollars um. So I think caution is very um prudent at this particular point. Um. We certainly think the industry obviously still has some tremendous upset. All right, great to spend some time with you. Thank
you so much for coming by. Jim Allen is a chairman of hard Rock International, the CEO of Seminal Gaming as well, based down in Fort Lauderdale, Florida.