This report does not constitute a rating action. Seminole Hard Rock?s revenues decreased about 18% in 2024 after the Mirage closed in July for its redevelopment into Hard Rock Las Vegas (HRLV). Excluding the impact of the Mirage, revenues contracted approximately 1% as the company?s portfolio of owned and franchised cafes have struggled to recover to pre-pandemic levels due to slow international travel and reduced foot traffic in major U.S. cities. To address these challenges, Hard Rock has closed unprofitable locations, including two owned and eight franchised cafes in 2024 and two more owned cafes in the beginning of 2025. We expect the company will continue to reposition its café portfolio by closing additional unperforming locations, diversifying away from large
