The Hard Rock Guitar Hotel is set to replace The Mirage in Las Vegas.

• After 35 years in operation, The Mirage is shutting down to allow Hard Rock's new Guitar hotel to take its place.
• High-end dining, boast-worthy entertainment, and high-priced sports packages are becoming more popular at resorts.
• The closure of Hard Rock on the Las Vegas Strip could benefit its neighbors when it reopens, providing new competition.

The Mirage is shutting down after 35 years to allow Hard Rock's new Guitar hotel to take its place.

The growing popularity of sports and entertainment in Las Vegas signifies a shift away from gambling as the primary attraction for tourists.

Jim Allen, Hard Rock International Chairman, expressed his gratitude and humility while sharing with CNBC that he is honored to be revitalizing the renowned integrated resort.

"The opening of the Mirage in December 1989 by Steve and Elaine Wynn transformed not only Las Vegas but also the perception of gaming. It became a renowned destination," Allen stated.

The Wynns' first megaresort, the largest hotel in the world at the time, was the Mirage. This week, Steve Wynn wrote a tribute to the ground-breaking property, as reported in the Las Vegas Review-Journal.

"In the past 16 years, no new hotel had been constructed in Las Vegas. However, after the 1989 arrival of Mirage, we experienced a rapid expansion of the city's capacity and became the fastest-growing city in America. The Mirage served as a catalyst, prompting a virtual doubling of the town's capacity."

The themed resorts that followed are inspired by another era and location. Excalibur, Luxor, and New York-New York primarily target budget-conscious visitors and families.

The Eiffel Tower replica in Paris Las Vegas offers stunning views. The Venetian draws in tourists with its replica canals and gondolas. Caesars Palace, which opened in 1966, set the early standard for themed resorts with its replica of Michelangelo's David.

Luxury touch points, high-end dining, boast-worthy entertainment, and high-priced sports packages are the future.

Hard Rock International has extensive experience offering it in Florida, Atlantic City, New York, and 70 countries worldwide.

In December 2022, The Mirage was purchased by a gambling and entertainment company owned by the Seminole Tribe of Florida from MGM Resorts.

The largest property owner on the Las Vegas Strip, a gaming real estate investment trust, owns The Mirage buildings and land and has announced a partnership with Hard Rock to bring a new resort to life.

In South Florida, Hard Rock's Guitar Hotel at Seminole Hard Rock Hollywood has been a huge success, and the company plans to replicate this model for its Las Vegas renovation. Hard Rock dominates the gambling industry in Florida.

In order to remain competitive on the Las Vegas Strip, frequent renovations, upgrades, and new amenities are necessary to attract not only bachelor parties and girls' weekends, but also midweek conventions.

On Monday, Susquehanna gaming analyst Joe Stauff wrote that it appears that the company is increasing its investment in Las Vegas to enhance the benefits of its portfolio positioning surrounding all the sports venues.

Stauff criticized Caesars for being stingy with its investments in Strip properties and downgraded its stock from neutral to negative.

On July 30, Caesars will release its second-quarter earnings, while MGM Resorts International will report the following day.

When the Mirage ceases operations Wednesday, 3,000 employees will lose their jobs.

Allen expressed hope to CNBC that he would rehire many of them when the new resort opens in spring 2027.

Allen stated that the world would be taken aback by some of the artists being considered for long-term residency.

The closure of Hard Rock on the Las Vegas Strip could benefit its neighbors when it reopens, providing new competition.

Nearly a million room nights will be removed from circulation annually due to the closure of the Mirage, according to CBRE analyst John DeCree's estimate.

In April, the closure of the Tropicana resulted in a loss of 400,000 room nights annually for The Strip, which is set to be demolished to make way for a new integrated resort and baseball stadium to host the A's of Major League Baseball.

At a time when room rates and visitation are breaking records, 4.9% of the available rooms temporarily vanish.