The Rank Group, which has more than 100 Hard Rock Cafés in 38 countries, has formed a joint venture with Spanish-based hotel operator Sol Melià to develop a chain of Hard Rock hotels and resorts throughout the Americas and Europe.
The four- and five-star hotels will be run under long-term management or franchise agreements and be sited in both resort and urban locations. The deal will provide a first foothold in the USA for Sol Melià, which has more than 350 hotels in 30 countries and already claims to be the 10th-largest hotel company in the world.
Hard Rock Hotels and Resorts (HRHR) will supply the concept, design, branding and contracts for the hotels, while Sol Melià will handle their management.
As in the cafés, the hotels' design will reflect a "rock attitude", and the hotels will feature live music and rock memorabilia.
"This joint venture is another step towards our objective of broadening our earnings base in Hard Rock through brand licensing," said Rank chief executive Mike Smith. "Hotel owners are increasingly seeking to differentiate their products, and the success of the hotel in Orlando has demonstrated that the Hard Rock brand can offer consumers a unique hotel experience."
The 650-bedroom Orlando hotel, which is owned by Universal Studios and Loews Hotels, achieved an average occupancy of 80% and revenue per available room (revpar) of $144 (£85.71) in 2002.
This March and April, occupancy and revpar were higher than 95% and $177 (£105.35) respectively.
A spokeswoman for Rank said that analysts had responded positively to the move because it offered little capital risk and potentially lucrative franchise revenues.
US private equity firm Becker Ventures will provide as much as $1b (£595m) to finance the venture, and will fund 50% of development costs up to $1m (£595,000) per year. Becker is the majority shareholder in the 381-bedroom Hard Rock hotel that will open in Chicago late this year to become the first hotel in the joint venture.
Other Hard Rock hotels are expected to open in New York, Madrid and Barcelona. The joint venture team is negotiating with major bar and restaurant groups such as China Grill, Nobu and Asia de Cuba to handle the cuisine.