HOLLYWOOD, FLA. – On February 2, 2020, the NFL will stage Super Bowl LIV at Hard Rock Stadium, less than nine miles from the Seminole Hard Rock Hotel & Casino Hollywood. A year later, Super Bowl LV will kick off at Raymond James Stadium, less than 11 miles from Seminole Hard Rock Hotel & Casino Tampa.
Synergy.
On Thursday, the Seminole’s Hollywood property will open its $1.5 billion expansion, with the focal point a guitar-shaped hotel tower rising high above the South Florida skyline near the Florida Turnpike. The launch follows the unveiling earlier this month of a $700 million addition to the Seminole hotel in Tampa.
Synergy again.
“The timing of these hotels is perfect because of the upcoming influence of two Super Bowls to be held in Florida back-to-back,” said Dr. Peter Ricci, director, Florida Atlantic University Hospitality and Tourism Management Program.
You would be hard pressed to find another tribal casino resort is such proximity to a single Super Bowl, let alone two from the same company in adjoining years. The Super Bowls promise large crowds for a couple of weeks.
“So the towers at both locations are going to have to draw a lot of convention business to really work. I have no doubt, however, that the Seminoles carefully examined the metrics before deciding to go ahead with these projects,” said Robert M. Jarvis, professor of law at Nova Southeastern University.
Indeed, the Seminole investment speaks to confidence in the company’s decisions for its two biggest Florida resorts. “One would have thought their next project would have been the long-rumored hotel at their Coconut Creek property, which really needs a hotel. But the numbers must have shown that the towers made financial sense,” Jarvis said.
According to Ricci, both the Tampa and Hollywood hotels have run annual occupancy rates close to 100 percent.
“Outside of rooms held out for repair or renovation, the hotels could normally sell all rooms available most days of every week of every year,” Ricci said. “As such, the demand is indeed there for these new hotel towers. Further, the Seminole properties far outpace the local marketplace which is already outpacing the nation when it comes to occupancy, average daily rate, and revenue per available room.”
Then again, there’s the basic issue both Hard Rock properties face.
“They are nowhere near the beach or the theme parks, which are still the main reason people come to Florida,” Jarvis said
Despite the challenges, the Seminole Tribe has risen to be the one of the strongest offering casino gaming activities in the country.
“The Seminoles recognized the limit to tribal gaming revenue, so took an aggressive approach to diversification of its portfolio,” Jarvis said
The tribe’s nearly $1 billion acquisition of Hard Rock International was the biggest game-changer. The Seminoles purchased the Hard Rock business, including its massive collection of rock ‘n’ roll memorabilia in 2006 through a deal with British casino and hotel company Rank Group PLC. At the time, Hard Rock was primarily a global restaurant operator with a handful of hotels. The acquisition included 124 Hard Rock Cafes, four Hard Rock hotels, two Hard Rock casino hotels, two Hard Rock Live! concert venues, and stakes in three unbranded hotels.
In the last 13 years, the Seminoles have positioned the tribe for growth in hotels, restaurants, casinos, and related business endeavors. Last year’s purchase of the former Trump Taj Mahal in Atlantic City, which was rebranded as Hard Rock Hotel & Casino Atlantic City, and a management contract with Northern California’s Enterprise Rancheria tribe on the soon-to-open Hard Rock Hotel & Casino Sacramento at Fire Mountain are examples of expanding the Hard Rock brand.
“Not only did the Seminoles pioneer tribal gaming, but they also have been very savvy in re-investing the profits they have made. What has particularly distinguished them is their forward thinking,” Jarvis said.
Moreover, the Seminoles recognized the importance of being politically engaged, and learned how to work the system, he said. Last year, the tribe teamed up with the Disney Corp. to get Amendment 3 passed. This change in the Florida Constitution preserves the Seminoles’ near monopoly on Florida gaming by blocking non-tribal casinos from entering the market without voter approval. As a result, the amendment beat back efforts by race and dog tracks to win approval from local jurisdictions to permit slot machines.
Had the amendment failed, and tracks in Central and North Florida would likely add slot machines, causing the Seminoles to likely withhold its payments to the state until approval of a new compact. The agreement might be slow in forthcoming if racetracks in places like Melbourne also offered slots.
Expansion of Hard Rock Tampa
The opening of the expansion at Seminole Hard Rock Hotel & Casino Tampa featured the traditional signature guitar smash, but also a high wire walk between the two Tampa towers by the king of high wire walks, Nik Wallenda. Light Balance, a second runner-up in Season 12 of America’s Got Talent, also did it high-tech neon performance, along with a concert from country music superstar Keith Urban.
“Seminole Hard Rock Hotel & Casino Tampa is already one of the largest and most profitable casinos in the United States,” said Hard Rock International Chairman Jim Allen, who also serves as CEO of Seminole Gaming. “The expansion will increase entertainment and dining options and help us attract guests from throughout the country and around the world.”
Tampa is the real money maker for the tribe, Jarvis said. Florida’s tribal casinos do not make revenues public. However, it has been reported that Tampa is responsible for 42 percent of the tribe’s gaming revenues, Jarvis said.
The extension added a 14-story tower, offering 562 hotel rooms and suites; three pools; and a 26,000-square-foot Rock Spa & Salon equipped with 13 treatment rooms, including a Rhythm & Motion room, Hammam ritual room, two VIP suites, a hair and nail salon, barbershop and co-ed aqua lounge.
The 223,900-square-foot casino added 1,000 slot machines and 41 table games, for a total of nearly 5,000 slots, 179 tables and a state-of-the-art poker room with 46 tables.
A private gaming parlor for VIP guests, with an exclusive check-in and private elevators to suites, is part of the new hotel tower.
The Tampa property also augmented its 11 food and beverage offerings with: Constant Grind, a casual sit down or grab and go hot spot for coffee, gelato, pastries, and more; Pool Bar & Grill, an upbeat, full service restaurant presenting views from the center of the hotel’s three pools; and Cipresso, an Italian restaurant offering refined service, crafted cocktails, wine pairings and an innovative menu.
“The significance of the hotel in Tampa cannot be understated,” said Patrick Harrison, chief marketing officer for Visit Tampa Bay. “The region is going through a period of remarkable growth, with several new properties coming online in the next 12 months, including a J.W. Marriott.”
Tourism stats show the region grew overnight visitors 2.1 percent in 2018. Visitor spending grew 6.9 percent over 2017 and 59 percent since 2009. More than 23.6 million visited last year and hotels revenues rose 5 percent, Harrison said. The average daily rate for hotel rooms increased for the fifth straight year, reaching $121.
Expansion of Hard Rock Hollywood
The guitar-shaped hotel tower is what set the expansion in Hollywood apart from Tampa and the many other resorts in South Florida. It is unique, observers said.
“The guitar shape will give the Hollywood skyline the iconic landmark that it always has lacked,” Jarvis said. “Thus, I expect future marketing pieces from the city to feature it prominently, which will give the tribe lots of free advertising.”
Designed to resemble back-to-back guitars, complete with guitar faces and brightly lit strings, the tower reaches 450 feet into the sky, outfitted with floor-to-ceiling glass panes.
“The guitar tower will attract casino players and other visitors from throughout the country and around the world,” Allen said. “It will put South Florida on the map as a world-class gaming destination, and it will have a huge economic impact on Florida.
But the guitar is more than just a 36-story sculpture. It has 638 hotel rooms that combined with a new seven-story 168-room Oasis Tower, will bring the total room inventory to 1,274. The add-ons include a 13.5-acre pool complex, with swim-up suites overlooking a lagoon and private pool area. The complex also includes three distinct waterfront areas, a beach-style experience, waterfalls overwater villas, each equipped with personal plunge pools.
When complete, Hard Rock Hollywood with include 28,000 square feet of retail space, a 40,000 square foot spa, the 7,000 capacity Hard Rock Live, 19 restaurants and bars, more than 3,000 slot machines and 200 table games. The casino includes a 45-table poker room with other features.
The hotel now features 120,000 square feet of meeting space, including a 38,000 square-foot exhibition hall that can host trade shows, association conventions, large corporate groups and social fundraisers.
Allen said the new space will allow the property to host a wider variety of events and performances, including live TV, boxing matches and awards shows. On October 25, Hard Rock Live will kick off with a performance by Maroon 5. Andrea Bocelli is already booked for November 7 with Sting on November 9 and Alicia Keys November 16.
William Sokolic is a Florida-based freelance journalist.
