Hard Rock Cafe, Sol Melia Join To Develop Hotels Worldwide

ORLANDO, FL— Hard Rock Cafe International today announced it has entered into a 50/50 joint venture agreement with Sol Meliá SA to exclusively develop, manage and franchise Hard Rock Hotel properties worldwide. The deal will provide hotel owners a unique proposition to access the Hard Rock Hotel brand through long-term management and/or franchise agreements. Under the joint venture, Hard Rock Cafe International will oversee the conceptualizing, design and branding of the hotels while Sol Meliá will serve as the management entity and also oversee the sales, marketing and distribution operations. According to the agreement, Hard Rock Cafe International and Sol Meliá will develop, market and manage new 4- and 5-star properties worldwide in both resort and urban locations. Under the terms of the venture, Sol Meliá will contribute three properties within the next four years and Hard Rock Cafe will contribute the management contract for its 381-room Hard Rock Hotel Chicago, which is scheduled to open November 2003. Hard Rock Cafe International has also entered into a separate development and finance agreement with Becker Ventures LLC (Becker)— the majority owner of the Hard Rock Hotel in Chicago— to fund 50% of all Hard Rock Hotel development costs up to $1 million per year. Other existing Hard Rock Hotel properties that currently operate under license include Orlando, Pattaya and Bali. There is also a Hard Rock Hotel and Casino in Las Vegas, which is owned and operated by Hard Rock Cafe co-founder Peter Morton. Three additional locations are in various stages of construction including one in Chicago and one each in Tampa and Hollywood, FL— both of which are linked to casino developments with the Seminole Indian Tribe of Florida. The joint venture will not affect the existing Hard Rock Hotels and the two currently under development in Florida, said the companies.