US group MGM Resorts announced Monday it had sold the operations for the famous Mirage hotel and casino in Las Vegas to Hard Rock International for $1.08 billion.

MGM bought the Mirage, which opened in 1989, in 2000.

Located on the iconic Vegas strip, the main artery of nightlife and gambling in Sin City, the hotel is known for the artificial volcano at its entrance, which "erupts" repeatedly every night.

Under the terms of the agreement, MGM Resorts will retain the rights to the name and brand "The Mirage." Hard Rock International -- the parent company of the restaurant chain Hard Rock Cafe -- is granted a three-year free license to run the hotel while finding a new name.

The deal, which is subject to regulatory approval, is expected to close in the second half of 2022. Once various fees have been deducted, it should bring in $815 million for MGM.

Hard Rock said in a statement that it "plans to build an iconic Guitar-shaped Hotel which will be located on the famous Las Vegas Strip."

The press release featured an artist's projection of a blue guitar with an amputated neck, divided into floors, in front of the Mirage. 

The group has already built a 638-room hotel in the shape of its trademark guitar symbol in Florida.