WEBVTT - Businessweek Extra - Hard Rock’s Jim Allen

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<v Speaker 1>Face is Bloomberg Business Week with Carol Masser and Jason

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<v Speaker 1>Kelly from Bloomberg Radio. I'm Jason Kelly and I'm Carol Masser.

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<v Speaker 1>Welcome to the Bloomberg Business Week Extra. It's our weekly

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<v Speaker 1>podcast bringing you an in depth interview you will not

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<v Speaker 1>hear anywhere else. Well and a very timely one, to

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<v Speaker 1>say the least. Jim Allen, he is the chairman and

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<v Speaker 1>CEO of hard Rock International. They've got their name on

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<v Speaker 1>the stadium where the super Bowl is being played right here.

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<v Speaker 1>Also spent a lot of money on a super Bowl

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<v Speaker 1>ad with some two D venues including cafes, hotels, casinos,

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<v Speaker 1>live music and the Rock Shop and within seventy six countries.

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<v Speaker 1>Hard Rock International is also Jason going to be on

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<v Speaker 1>everyone's radar for the Big Game. First, of course, because

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<v Speaker 1>the super Bowl is gonna be played in hard Rock

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<v Speaker 1>Stadium right and there's gonna be a big ad and

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<v Speaker 1>it's gonna be one I predict that we're gonna be

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<v Speaker 1>talking about in part because one of the stars is

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<v Speaker 1>j Lo. She's also performing at the Big Game. Jim

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<v Speaker 1>Allen is here with us, back with us, I should say,

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<v Speaker 1>great to see you. A big week obviously for the

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<v Speaker 1>whole enterprise in a lot of ways. Tell us what

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<v Speaker 1>this means for the company? Oh amazingly excited about obviously

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<v Speaker 1>Super Bowl Week and having a commercial you know, as

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<v Speaker 1>part of the halftime festivities for a Super Bowl the

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<v Speaker 1>hundred year anniversary of the NFL at hard Rock Stadium.

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<v Speaker 1>So tell us though about why, I mean, you guys

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<v Speaker 1>have not done right and add at the Super Bowl,

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<v Speaker 1>So why why is now the right time? You know?

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<v Speaker 1>It all kind of came together with the opening of

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<v Speaker 1>the world's first guitar shaped hotel, the hundred year anniversary

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<v Speaker 1>of the NFL hard Rock Stadium, and it just seemed like,

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<v Speaker 1>if we're going to be involved, you know, let's get

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<v Speaker 1>involved on a big time basis. But Jamal and tell

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<v Speaker 1>us about the Super Bowl audience. What is it about

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<v Speaker 1>that audience that you know, man, this is a place

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<v Speaker 1>you want to run an ad. The most watched event

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<v Speaker 1>in the world, over a hundred million people see this

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<v Speaker 1>particular event that's just on the TV broadcast itself when

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<v Speaker 1>you look at them online, it certainly creates a lot

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<v Speaker 1>more media impressions, you know, for a global basis for

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<v Speaker 1>the hard rock brand, and that's something we're very excited about.

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<v Speaker 1>So tell us what you can about the ad. Obviously

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<v Speaker 1>want to leave some for this everything you can about

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<v Speaker 1>the ad because because of that audience people, as you

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<v Speaker 1>know and I know we know some of them, there

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<v Speaker 1>are people who tune in just for the ads. They

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<v Speaker 1>don't even care about the game. So the stakes are high.

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<v Speaker 1>As they say in your Business. Well, we have our

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<v Speaker 1>verbals from the NFL and Fox UM, so we're still

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<v Speaker 1>literally a few hours away of getting the final approvals.

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<v Speaker 1>But certainly with that said, we didn't want it just

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<v Speaker 1>to be a spot about the brand, so we kind

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<v Speaker 1>of created this storyline. Obviously, hiring a director and producer

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<v Speaker 1>like Michael Bay speaks for itself that we're committed here

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<v Speaker 1>long term. So the spot is almost like a mini

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<v Speaker 1>story that then eventually takes you to our websites, our

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<v Speaker 1>relationship with j Low and frankly creates, you know, the

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<v Speaker 1>introduction to the two million dollar sweepstakes which will be announcing.

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<v Speaker 1>So Michael Bay, so is it going to have like

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<v Speaker 1>an Armageddon Transformers kind of feel which will have a

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<v Speaker 1>Hollywood feel? Promise you that did you guys really spend

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<v Speaker 1>about five point six million to make this commercial. Well,

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<v Speaker 1>give us an idea. Well, I could say we're north

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<v Speaker 1>of ten million all in. Wow, was that a hard

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<v Speaker 1>check to write? Well, rank with the spots themselves, you know,

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<v Speaker 1>were approaching that, and you know Kennily were well north

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<v Speaker 1>of ten million all in. And so Michael Bay tell

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<v Speaker 1>us how he gets the nod? He lives in Miami,

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<v Speaker 1>I think, and so he's got some connections here. Well,

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<v Speaker 1>I think we wanted to create something that was special, right,

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<v Speaker 1>and not just because of all the amazing movies that

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<v Speaker 1>he's directed, but also did a lot of music videos,

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<v Speaker 1>so he certainly understands the brand. Certainly, being in Miami

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<v Speaker 1>made it a little bit easier as far as proximity,

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<v Speaker 1>you know, to the guitar shaped hotel. But frankly, we

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<v Speaker 1>did look at some other candidates and he by far

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<v Speaker 1>was the one we were hoping for and when he

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<v Speaker 1>said yes, we were certainly very excited. Yeah, it's really

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<v Speaker 1>cool to have him and I can't imagine how how

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<v Speaker 1>much fun it was to work with him. What is

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<v Speaker 1>this a bet on Jim? Is it a bet on

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<v Speaker 1>the hotel business? Is it on online gaming, which you

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<v Speaker 1>guys have been moving certainly aggressively into what what is

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<v Speaker 1>it about for you? What do you hope to get

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<v Speaker 1>out of it? Well, I think the hard Rock brand, um,

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<v Speaker 1>we know that, you know, coming up on our fifty

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<v Speaker 1>year anniversary, is one of the most recognized brands in

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<v Speaker 1>the world. But we want to continue to position as

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<v Speaker 1>a brand of entertainment. And obviously the Super Bowl is

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<v Speaker 1>much more than a football game. It's about entertainment when

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<v Speaker 1>you think about people coming together in houses and all

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<v Speaker 1>the different things they do. So being part of this

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<v Speaker 1>was something that was very important for me to position

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<v Speaker 1>hard Rock is not just a brand of hospitality but

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<v Speaker 1>a brand of entertainment. But what do you hope that

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<v Speaker 1>in terms of people say, oh, hard Rock, I didn't

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<v Speaker 1>know that they I forgot that they're doing this, or

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<v Speaker 1>they're doing this. Well, we are certainly hopeful that will

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<v Speaker 1>drive some foot traffic to all the locations on a

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<v Speaker 1>global basis. But you know, I don't think it's about

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<v Speaker 1>quote unquote internet gambling. I think it's more about the

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<v Speaker 1>brand itself, which obviously has many different sectors that we're

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<v Speaker 1>looking for additional foot traffic to come to our facilities,

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<v Speaker 1>both in person and then certainly online through through the

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<v Speaker 1>online retail or internet gaming, etcetera. All right, so, speaking

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<v Speaker 1>of foot traffic and eyeballs, a lot of people are

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<v Speaker 1>going to be walking in and watching a game that's

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<v Speaker 1>held in the stadium that you named. You paid I

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<v Speaker 1>believe to un fifty million dollars for the for the

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<v Speaker 1>naming rights, no small chunk of change. What was the

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<v Speaker 1>obviously this is going back a little bit, but what

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<v Speaker 1>was the thinking behind putting your name on that particular stadium?

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<v Speaker 1>You know, we had been approached about this many times,

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<v Speaker 1>and um, we looked at it and we said, no,

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<v Speaker 1>it's probably not for us because we were concerned in

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<v Speaker 1>different cities you're talking about, well, frankly in many cities,

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<v Speaker 1>but but specifically in South Florida. Um. And once we

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<v Speaker 1>understood that Mr Ross, Steve Ross, who's the owner of

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<v Speaker 1>the Miami Dolphins and the actual physical structure itself, was

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<v Speaker 1>committed to really create something that was more than just

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<v Speaker 1>a football stadium. That piqued my interest. And you know,

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<v Speaker 1>Steve would say that it was rather interesting, you know,

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<v Speaker 1>back and forth between him and myself, but we were

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<v Speaker 1>really excited when we saw he wanted to do things

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<v Speaker 1>other than just football. So whether it's the Rolling Stones

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<v Speaker 1>excuse me. You know, with their last show there beyond

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<v Speaker 1>a jay Z you two, Formula one, you know, the

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<v Speaker 1>Miami Open moving you know obviously from Biscayne Now to

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<v Speaker 1>hard Rock Stadium. It's really an entertainment destination. And once

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<v Speaker 1>we were convinced that was going to be part of

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<v Speaker 1>the script, not just the football, very very excited. So

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<v Speaker 1>tell us a little bit about that back and forth

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<v Speaker 1>if you can. We know Stephen Ross, well, he's gonna

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<v Speaker 1>be joining us actually later this week in a big

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<v Speaker 1>conference we're doing down there. He's a tough businessman. You're

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<v Speaker 1>a tough businessman. So what were you really sort of

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<v Speaker 1>haggling over at the end of the day. I don't

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<v Speaker 1>know if it was haggling, but I think it was

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<v Speaker 1>more about making sure that we understood what the entertainment

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<v Speaker 1>commitment was going to be obviously, then tying that back

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<v Speaker 1>to the actual dollars associated with the sponsorship. And then

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<v Speaker 1>most importantly, we did not want to do this on

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<v Speaker 1>a short term basis. We were in and we were

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<v Speaker 1>all in um or. We didn't want to end up

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<v Speaker 1>in a situation where we've got a five year sponsorship

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<v Speaker 1>and then hypothetically the name changes a guy, So you know,

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<v Speaker 1>people are gonna know hard Rock Stadium for the next

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<v Speaker 1>you know, well, actually we're already three years into the

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<v Speaker 1>deal for the next seventeen years, and that was very

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<v Speaker 1>important to us. So what does it mean for the

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<v Speaker 1>future stadium. I do feel like there's more challenges for

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<v Speaker 1>people time, new fans, younger fans. They want a different

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<v Speaker 1>type of experience. So what does it mean for you

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<v Speaker 1>guys in terms of what you'll be doing with that

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<v Speaker 1>stadium going forward? Twenty years commitment, that's a long time,

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<v Speaker 1>So what's the future. But you know, I think like

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<v Speaker 1>in any physical building, you know, there's always a conversation

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<v Speaker 1>about reinvesting in Capex and if we look at Steve's

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<v Speaker 1>incredible success you know, look at the Hudson Yards here.

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<v Speaker 1>I mean, obviously he and his companies have a long

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<v Speaker 1>track record at continuing to reinvest to create a world

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<v Speaker 1>class product. So frankly that was something that was very

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<v Speaker 1>important to me um which we believe that the same

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<v Speaker 1>will continue at hard Rock Stadium as we move forward.

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<v Speaker 1>Even if you look at what's happened since we actually

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<v Speaker 1>signed the deal, we certainly knew that Super Bowls were

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<v Speaker 1>a strong possibility. Nothing is guaranteed, because obviously the NFL

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<v Speaker 1>has to approve that, but it was very clear in

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<v Speaker 1>the contract, which the NFL was aware of, that if

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<v Speaker 1>a Super Bowl occurs, then certain financial and economic things

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<v Speaker 1>may or may not happen. With the relationship between Mr

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<v Speaker 1>Ross and ourselves. We believe the same will happen as

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<v Speaker 1>we continue to grow the partnership on a long term

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<v Speaker 1>and basis. And do you have any sense of how

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<v Speaker 1>many super Bowls? I mean, obviously they don't go too

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<v Speaker 1>far out, but I mean you could get multiple in uh,

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<v Speaker 1>in that period of time. Well, first of all, there's

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<v Speaker 1>been more Super Bowls in South Florida than anywhere else

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<v Speaker 1>in the United States. Um, it's just such the it's

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<v Speaker 1>such an ideal place for the super Bowl because obviously

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<v Speaker 1>Miami is an international gateway city, tremendous amount of hotel rooms.

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<v Speaker 1>You don't have to bring in cruise ships to try

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<v Speaker 1>to put people for a place to stay. Um, the

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<v Speaker 1>Guitar Hotel, all the amenities that we offer at at

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<v Speaker 1>hard Rock. We just think it's a natural. So we're

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<v Speaker 1>very hopeful that many more will come in the future.

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<v Speaker 1>So what about some of the other properties, And I'm

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<v Speaker 1>thinking about Atlantic City. I've spent some time down they

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<v Speaker 1>are talking to UM, your team and other folks. UM,

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<v Speaker 1>you were pretty critical about what's going on in Atlantic

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<v Speaker 1>City recently in terms of the city itself, the safety. UM,

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<v Speaker 1>first of all, tell us how the property is doing.

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<v Speaker 1>Property is doing very well. You know, first year of

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<v Speaker 1>first full year of operation actually rose to number two

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<v Speaker 1>in the marketplace in gross gaming revenue. So that's something

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<v Speaker 1>that we were very proud of. When you look at

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<v Speaker 1>the amazing brands like Harrison Caesar's Tropicanical Nugget that have

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<v Speaker 1>been there. You know, she has been there for over

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<v Speaker 1>fourty years, so UM, huge database. You know, to go

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<v Speaker 1>up and compete against that in the first year to

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<v Speaker 1>get the number two, it's very important. Jim. Is it

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<v Speaker 1>a different type of individual who's coming to hard rock

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<v Speaker 1>down Atlantic City versus in the past. No doubt. We

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<v Speaker 1>certainly focused on entertainment, you know Live three. I mean

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<v Speaker 1>that was really about creating and not just music, right,

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<v Speaker 1>so whether it's comedy with Harry Mendel, whether it's with

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<v Speaker 1>the knea Lander family, with all the Broadway shows we're doing,

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<v Speaker 1>and frankly really exceeded our expectations. I think it's a

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<v Speaker 1>real compliment to the hard Rock brand, the knee Lander family.

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<v Speaker 1>But frankly, Atlantic City because the numbers we did with

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<v Speaker 1>Jersey Boys, we're really really strong. So now we're going

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<v Speaker 1>to do four Broadway series this upcoming season. As far

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<v Speaker 1>as the town itself, it's not that we feel it's

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<v Speaker 1>quote unquote unsafe. We just feel as though that trenton

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<v Speaker 1>the c r d A, you know, unfortunately, that mayor

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<v Speaker 1>was arrested again. You know, we've seen this so many times.

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<v Speaker 1>Now is the time to come together to say, look,

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<v Speaker 1>we've had a company like hard Rock invest over five

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<v Speaker 1>hundred million dollars. Let's live up to what we said

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<v Speaker 1>we're going to do to take the next step together.

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<v Speaker 1>But you did tell a p you said, frankly, the

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<v Speaker 1>towns and worst shaped today than it was when we

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<v Speaker 1>bought the building. When you're in a resort environment where

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<v Speaker 1>safety and security is so important, if the city can't

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<v Speaker 1>get something fixed as simple as the street lighting, that

0:10:19.360 --> 0:10:23.480
<v Speaker 1>maybe a change is needed. I mean frustrating. Yeah, So

0:10:23.720 --> 0:10:27.520
<v Speaker 1>that and and specifically street lights. You would think that

0:10:27.559 --> 0:10:30.120
<v Speaker 1>the local municipality would be handled that. And if they

0:10:30.120 --> 0:10:33.040
<v Speaker 1>don't understand that, if you don't keep up with street lights,

0:10:33.320 --> 0:10:36.360
<v Speaker 1>then safety can become an issue. But to be fair,

0:10:36.480 --> 0:10:39.079
<v Speaker 1>we haven't seen crime issues at hard Rock at all,

0:10:39.200 --> 0:10:41.000
<v Speaker 1>to be fair to the city. But frankly, if you

0:10:41.000 --> 0:10:43.200
<v Speaker 1>don't fix the street lights, you're going to have crime,

0:10:43.760 --> 0:10:46.439
<v Speaker 1>and that's the issue. And so we've talked about Miami,

0:10:46.480 --> 0:10:48.360
<v Speaker 1>talked a little bit about Atlantic City. Tell us where

0:10:48.360 --> 0:10:51.960
<v Speaker 1>else you're sort of looking to, either to expand an

0:10:51.960 --> 0:10:56.280
<v Speaker 1>existing footprint or areas of the country or even the

0:10:56.280 --> 0:10:59.280
<v Speaker 1>world that might be more interesting to you going forward. Well,

0:10:59.320 --> 0:11:01.280
<v Speaker 1>you know, Rate literally a few blocks away here in

0:11:01.280 --> 0:11:04.000
<v Speaker 1>New York City, just was there yesterday morning at the site.

0:11:04.160 --> 0:11:06.360
<v Speaker 1>We're up to about four number floor and our new,

0:11:06.400 --> 0:11:09.360
<v Speaker 1>brand new hard Rock hotel over on forty Street. So

0:11:09.440 --> 0:11:12.680
<v Speaker 1>we're very excited about that. UM. On a global basis,

0:11:12.720 --> 0:11:17.679
<v Speaker 1>we're opening Dublin, Madrid, Barcelona, UM. You know, as we

0:11:17.720 --> 0:11:20.880
<v Speaker 1>look expanding the hotel division, that's something that's very important

0:11:20.880 --> 0:11:24.360
<v Speaker 1>to us. So Budapest another city where we're opening. Certainly

0:11:24.400 --> 0:11:28.280
<v Speaker 1>we have gaming integrated resort deals in UM separate from

0:11:28.280 --> 0:11:31.680
<v Speaker 1>the hotel in Barcelona, but also at port Aventura in

0:11:31.800 --> 0:11:35.760
<v Speaker 1>Barcelona technically Catalonia. And then UM obviously Mexico City is

0:11:36.080 --> 0:11:39.079
<v Speaker 1>a project that we're extremely excited about. What about Vegas,

0:11:39.160 --> 0:11:40.760
<v Speaker 1>Let's dott you talk to us. In October we made

0:11:40.800 --> 0:11:43.320
<v Speaker 1>some headlines. We got a great little story, UM are

0:11:43.679 --> 0:11:46.240
<v Speaker 1>what's happening in Vegas? You know, we'll have to ask

0:11:46.240 --> 0:11:48.520
<v Speaker 1>our friends at Virgin UM. We saw a story last

0:11:48.559 --> 0:11:51.520
<v Speaker 1>week and now they're back on UM. We're very hopeful.

0:11:51.559 --> 0:11:54.240
<v Speaker 1>We wish everybody the best of luck. UM. Certainly, the

0:11:54.280 --> 0:11:56.360
<v Speaker 1>hard rock in Las Vegas is not a property we

0:11:56.440 --> 0:11:59.679
<v Speaker 1>control our own, UM, so it's supposed to close, we believe,

0:11:59.760 --> 0:12:02.880
<v Speaker 1>next weekend and be reconverted into a Virgin you know.

0:12:02.960 --> 0:12:05.040
<v Speaker 1>And if that happens, we certainly wish everybody the best

0:12:05.040 --> 0:12:07.360
<v Speaker 1>of laws. And that opens up the possibility for you

0:12:07.440 --> 0:12:11.600
<v Speaker 1>down the road. We made a a transaction we completed

0:12:11.600 --> 0:12:14.520
<v Speaker 1>with Brookfield back in September of two thousand and sixteen

0:12:14.920 --> 0:12:16.960
<v Speaker 1>that if the brand comes off of it, then the

0:12:17.000 --> 0:12:19.480
<v Speaker 1>brand rights because we already bought the rest of the

0:12:19.480 --> 0:12:22.640
<v Speaker 1>brand rights back at that period, but specifically Las Vegas

0:12:22.640 --> 0:12:24.440
<v Speaker 1>then comes back to us. How quickly would you like

0:12:24.480 --> 0:12:26.160
<v Speaker 1>to make the footprint in Vegas of all of that

0:12:26.200 --> 0:12:30.120
<v Speaker 1>plays out. You know, I'm very very neutral and conservative

0:12:30.160 --> 0:12:33.800
<v Speaker 1>on Las Vegas right now. We certainly understand long term,

0:12:33.920 --> 0:12:36.480
<v Speaker 1>Las Vegas is always going to be the gambling capital

0:12:36.480 --> 0:12:38.559
<v Speaker 1>of the United States. But when you look at room

0:12:38.640 --> 0:12:40.880
<v Speaker 1>rates and you look at the product, you know, it's

0:12:40.920 --> 0:12:43.520
<v Speaker 1>just kind of in a neutral position right now. So

0:12:43.600 --> 0:12:46.400
<v Speaker 1>I think it's important to be building um at the

0:12:46.520 --> 0:12:49.320
<v Speaker 1>right time in Las Vegas. Clearly we've seen you know,

0:12:49.360 --> 0:12:53.560
<v Speaker 1>ten plus years of economic growth. Um. I'm not an economist,

0:12:53.600 --> 0:12:56.160
<v Speaker 1>but certainly something is going to happen sometime in the

0:12:56.160 --> 0:12:58.439
<v Speaker 1>next year or two. So I think timing in Las

0:12:58.559 --> 0:13:01.360
<v Speaker 1>Vegas is very important. We would love to be opening

0:13:01.520 --> 0:13:04.920
<v Speaker 1>if if our brand was available to be utilized, say

0:13:04.960 --> 0:13:08.320
<v Speaker 1>more on a strip coming out of an economic situation,

0:13:08.400 --> 0:13:11.680
<v Speaker 1>rather than going into one. Alright, so back to football

0:13:11.720 --> 0:13:13.560
<v Speaker 1>for a second. Speaking of which, Las Vegas they're going

0:13:13.600 --> 0:13:15.880
<v Speaker 1>to get a football team, so maybe that makes Las

0:13:15.960 --> 0:13:19.520
<v Speaker 1>Vegas a little more interesting. Um, you know, tell us

0:13:19.559 --> 0:13:23.120
<v Speaker 1>about what this moment means for sort of your leadership

0:13:23.600 --> 0:13:25.400
<v Speaker 1>of the company. I mean, this is a big week

0:13:25.600 --> 0:13:28.720
<v Speaker 1>as we've been talking about Super Bowl coming to your stadium.

0:13:28.880 --> 0:13:31.520
<v Speaker 1>Your name's on it, big super Bowl. Add like, what

0:13:31.720 --> 0:13:34.080
<v Speaker 1>where do you sort of put yourself in sort of

0:13:34.120 --> 0:13:37.040
<v Speaker 1>what you want to get done with this brand right now. Well,

0:13:37.080 --> 0:13:38.920
<v Speaker 1>I think that when we look at the two point

0:13:38.920 --> 0:13:41.840
<v Speaker 1>two billion dollars that we just you know finished in

0:13:41.920 --> 0:13:46.200
<v Speaker 1>capital investment, completing construction wise in Tampa, in Hollywood, and

0:13:46.240 --> 0:13:48.720
<v Speaker 1>to have those open on time and very humbly, you know,

0:13:48.760 --> 0:13:52.280
<v Speaker 1>frankly exceeding um projections in a major way. I mean,

0:13:52.280 --> 0:13:56.319
<v Speaker 1>they're doing very very well. We opened Sacramento, we opened Cabo.

0:13:56.440 --> 0:13:59.079
<v Speaker 1>It was a very very busy quarter for us. The

0:13:59.160 --> 0:14:02.440
<v Speaker 1>last quarter of last year we closed on the Cincinnati transaction,

0:14:02.480 --> 0:14:05.000
<v Speaker 1>which now we'll be converting that into a hard rock

0:14:05.040 --> 0:14:09.280
<v Speaker 1>you know, Destination announced, Rockford announced Indiana, So you know,

0:14:09.360 --> 0:14:11.400
<v Speaker 1>we've been very, very busy. So I think all that

0:14:11.480 --> 0:14:14.560
<v Speaker 1>coming together is very very favorable for the brand. But

0:14:14.600 --> 0:14:16.640
<v Speaker 1>at the same time, it's very important to me that

0:14:16.679 --> 0:14:19.400
<v Speaker 1>we do not expand too rapidly. You know. I keep

0:14:19.440 --> 0:14:21.720
<v Speaker 1>telling the team, you know, we've got to be cognizant

0:14:22.080 --> 0:14:24.040
<v Speaker 1>that all the little things matter. And I think really

0:14:24.080 --> 0:14:27.400
<v Speaker 1>that's our focus for you know, finish up what we have.

0:14:27.800 --> 0:14:31.080
<v Speaker 1>We're always going to sign between fifteen and twenty international

0:14:31.160 --> 0:14:34.560
<v Speaker 1>cafes and you know, between ten and twelve hotels, but

0:14:34.640 --> 0:14:36.920
<v Speaker 1>really focusing on, you know, getting the service and all

0:14:36.960 --> 0:14:39.400
<v Speaker 1>those things to the highest level possible. What what's your

0:14:39.400 --> 0:14:41.600
<v Speaker 1>outlook because it's interesting to hear you talk because obviously

0:14:41.680 --> 0:14:44.280
<v Speaker 1>you're you're finishing up, you know, building a bunch of hotels,

0:14:44.280 --> 0:14:46.400
<v Speaker 1>and those are commitments that you made a while ago

0:14:46.560 --> 0:14:50.080
<v Speaker 1>or so on. So but I'm just curious about the outlook.

0:14:50.400 --> 0:14:52.280
<v Speaker 1>You know. It sounds like a little bit of cautiousness

0:14:52.320 --> 0:14:56.840
<v Speaker 1>in there, is there? Listen. I understand that the election

0:14:57.000 --> 0:15:00.080
<v Speaker 1>you know, in November could have tremendous impact on what

0:15:00.160 --> 0:15:02.480
<v Speaker 1>may or may not occur with the economy. Right, but

0:15:02.680 --> 0:15:05.160
<v Speaker 1>even if things stay the same, you know, and I

0:15:05.280 --> 0:15:07.560
<v Speaker 1>might referring to the presidency, but the Senate in the House,

0:15:07.600 --> 0:15:10.320
<v Speaker 1>and who knows what may or may not happen here. Um,

0:15:10.320 --> 0:15:12.840
<v Speaker 1>I think one has to be cautious that if you

0:15:12.880 --> 0:15:16.280
<v Speaker 1>look historically, you know, over ten years of economic growth,

0:15:16.920 --> 0:15:20.400
<v Speaker 1>now lapping numbers were quote unquote, the new tax advantage

0:15:20.640 --> 0:15:23.680
<v Speaker 1>you know for corporations, you know, is already in play.

0:15:23.840 --> 0:15:26.600
<v Speaker 1>There certainly has been obviously some regulatory you know, things

0:15:26.600 --> 0:15:29.360
<v Speaker 1>from a business perspective that people think are positive. I

0:15:29.440 --> 0:15:32.040
<v Speaker 1>recognize remember Hard Rocks a brand about love all serve

0:15:32.080 --> 0:15:34.840
<v Speaker 1>all and save the planet. There's another side of that,

0:15:34.920 --> 0:15:37.440
<v Speaker 1>and we're very, very respectful to that. But I just

0:15:37.480 --> 0:15:40.520
<v Speaker 1>think one has to be cautious. This can't go on forever,

0:15:41.040 --> 0:15:44.480
<v Speaker 1>right and so do you then how does that sort

0:15:44.480 --> 0:15:47.120
<v Speaker 1>of play through to the business decisions you make, maybe

0:15:47.120 --> 0:15:50.680
<v Speaker 1>for the balance of you know, fundamentally, if we go back.

0:15:50.840 --> 0:15:52.720
<v Speaker 1>You know, when I first met the Seminole tribe, when

0:15:52.760 --> 0:15:55.720
<v Speaker 1>we started this business back in late two thousand, only

0:15:55.760 --> 0:15:58.600
<v Speaker 1>two thousand and one, it was always about focusing on

0:15:58.640 --> 0:16:01.400
<v Speaker 1>the balance sheet. So you know, we're still levered. If

0:16:01.440 --> 0:16:04.200
<v Speaker 1>they're just expanding two point two billion dollars in Florida

0:16:04.440 --> 0:16:06.960
<v Speaker 1>and only one point six one point seven. You know,

0:16:07.120 --> 0:16:09.800
<v Speaker 1>we imposed on ourselves in Wall Street did not to

0:16:09.920 --> 0:16:12.320
<v Speaker 1>de lever, so we'll be back down to one or

0:16:12.440 --> 0:16:14.720
<v Speaker 1>under within the next five five and a half years.

0:16:15.120 --> 0:16:18.320
<v Speaker 1>So we'll always focus on a very strong investment grade

0:16:18.360 --> 0:16:21.760
<v Speaker 1>balance sheet to whether these storms. We don't understand how

0:16:21.800 --> 0:16:24.840
<v Speaker 1>some companies get out there and make these commitments for

0:16:24.920 --> 0:16:28.680
<v Speaker 1>short term EPs and then obviously when times get rough

0:16:28.800 --> 0:16:32.160
<v Speaker 1>and you know, room rates move ten fift twenty hours,

0:16:32.280 --> 0:16:33.880
<v Speaker 1>how do you generate the cash to pay all this

0:16:34.000 --> 0:16:37.920
<v Speaker 1>amazing interest that people obviously get themselves into one thing

0:16:37.920 --> 0:16:40.160
<v Speaker 1>that Tason I'd like to ask her, Betty, and last question,

0:16:40.360 --> 0:16:43.400
<v Speaker 1>what's your biggest existential threat right now facing you in

0:16:43.480 --> 0:16:46.720
<v Speaker 1>terms of your company your business? I think that you know,

0:16:46.920 --> 0:16:50.120
<v Speaker 1>the world economy is something that we always have to

0:16:50.120 --> 0:16:53.040
<v Speaker 1>be focused on. And literally in three weeks, you know,

0:16:53.080 --> 0:16:55.360
<v Speaker 1>if you looked at futures this morning down four hundred plus,

0:16:55.400 --> 0:16:57.160
<v Speaker 1>you know obviously the markets down hundred and eighties, some

0:16:57.200 --> 0:17:00.960
<v Speaker 1>points are so right now, literally in days, the world

0:17:01.000 --> 0:17:03.960
<v Speaker 1>economy can change that may or may not be within

0:17:04.280 --> 0:17:07.199
<v Speaker 1>you know, us businesses control. And since we're in seventy

0:17:07.280 --> 0:17:09.480
<v Speaker 1>six countries, I think it's very important for us to

0:17:09.520 --> 0:17:12.080
<v Speaker 1>always be focused on the world economy. Right And do

0:17:12.119 --> 0:17:15.640
<v Speaker 1>you worry about this particular situation right now coming out

0:17:15.640 --> 0:17:18.400
<v Speaker 1>of China for your business? Well, your right hospitality, right

0:17:18.440 --> 0:17:20.840
<v Speaker 1>this is you know we've closed to cafes already. You

0:17:20.840 --> 0:17:23.040
<v Speaker 1>know what our sins End hotel was most likely going

0:17:23.040 --> 0:17:26.160
<v Speaker 1>to close until we navigate through what may or may

0:17:26.160 --> 0:17:29.200
<v Speaker 1>not occur, always being respectful in this particular case to

0:17:29.240 --> 0:17:31.440
<v Speaker 1>the Chinese government. You know they have over forty million

0:17:31.480 --> 0:17:34.800
<v Speaker 1>people now in some type of quarantine, So certainly no

0:17:34.880 --> 0:17:37.240
<v Speaker 1>matter what your viewpoint is. You have to keep an

0:17:37.280 --> 0:17:38.760
<v Speaker 1>eye on that. But do I think it's going to

0:17:38.840 --> 0:17:41.720
<v Speaker 1>have a major impact on our profitability? No, I do not,

0:17:41.840 --> 0:17:43.520
<v Speaker 1>even though it's the lunar New Year, right, this is

0:17:43.520 --> 0:17:46.240
<v Speaker 1>such an important time in terms of travelers over in Asia,

0:17:46.920 --> 0:17:49.320
<v Speaker 1>well certainly on a global basis when we look at

0:17:49.320 --> 0:17:51.760
<v Speaker 1>the Chinese there, you know, not quite but another couple

0:17:51.760 --> 0:17:54.760
<v Speaker 1>of years be the largest traveling group in the world.

0:17:55.119 --> 0:17:57.160
<v Speaker 1>So I think that's always important. But you know, these

0:17:57.200 --> 0:18:00.399
<v Speaker 1>things seem to kind of come and go. Um. I

0:18:00.440 --> 0:18:02.919
<v Speaker 1>don't think, you know obviously if it continues, but it

0:18:02.960 --> 0:18:05.600
<v Speaker 1>seems like the world health organizations are stepping in and

0:18:05.640 --> 0:18:08.320
<v Speaker 1>people are becoming very cognizant very quickly. And that was

0:18:08.400 --> 0:18:10.800
<v Speaker 1>Jamal and the chairman and CEO of hard Rock International.

0:18:10.800 --> 0:18:12.800
<v Speaker 1>Great to catch up with him ahead of the big

0:18:12.840 --> 0:18:15.600
<v Speaker 1>game because they really are involved in it in so

0:18:15.640 --> 0:18:18.200
<v Speaker 1>many different ways, and also just to get his global perspective.

0:18:18.200 --> 0:18:20.400
<v Speaker 1>This is a company that is in seventy six countries,

0:18:20.720 --> 0:18:23.399
<v Speaker 1>just to see what he says is going on in

0:18:23.480 --> 0:18:26.760
<v Speaker 1>terms of the consumer and the world well exactly, and

0:18:26.880 --> 0:18:29.679
<v Speaker 1>especially at a time when businesses are starting to wrestle

0:18:29.680 --> 0:18:33.240
<v Speaker 1>with the implications of this virus that started in China,

0:18:33.600 --> 0:18:36.240
<v Speaker 1>where that goes from here. They are clearly keeping an

0:18:36.240 --> 0:18:38.720
<v Speaker 1>eye on it. You've been listening to Bloomberg Business Week Extra.

0:18:38.800 --> 0:18:40.960
<v Speaker 1>We sort of tune into Bloomberg Business Week Radio Live

0:18:40.960 --> 0:18:43.040
<v Speaker 1>Monday through Friday at two pm Wall Street Time. I'm

0:18:43.040 --> 0:18:45.919
<v Speaker 1>Bloomberg Radio. I'm Carol Masser, and I'm Jason Kelly. This

0:18:45.960 --> 0:18:46.520
<v Speaker 1>is Bloomberg