Strickland Lost Full Service Hard Rock

Written by: Paul Gagliano

By now, had the Strickland administration acted, a full-service Hard Rock Hotel would be operating in Downtown Memphis. Instead, a major gap locally persists in servicing conventions with full-service hotels. This deal was all the more Memphis-centric in that the founder of the Hard Rock brand, Issac Tigrett, was the son of Memphis financier John Tigrett.

Beale Street Hard Rock Hotel discussions began with the Strickland administration near the end of 2018. But for some reason discussions stalled in late 2019, when Alan Crone departed as Mayor Strickland’s Special Counsel and Jennifer Sink became the Chief Legal Officer within the Strickland administration. 

With the Hard Rock executive management enthused about the possibility of a Hard Rock Hotel on Beale Street in Memphis, momentum was present for an additional downtown full-service hotel. But no more, with the Strickland administration effectively shutting out an international, in-demand brand in the Hard Rock Hotel. 

Had the plans been able to move forward, the Hard Rock was to have its hotel lobby on the second floor of the newly constructed building, coupled with a guitar-shaped swimming pool overlooking Beale Street. On the first floor was to be Hard Rock-owned historical artifact displays with memorabilia from the likes of Prince, the Beatles, the Rolling Stones and others. How cool would that have been? 

Further, based on Hard Rock’s proposal, the hotel was set to boost City and County revenues by $1M annually, with a $100M+ development income from increased public parking revenue, rent to the City and local sales taxes, while insuring 30% Minority and Women-owned Business Enterprise (MWBE) participation in the project’s development. 

Here is a quick timeline of events:

Negotiations hit a snag when the gross revenue percentage could not be agreed upon, at which time, I was told Strickland told Hard Rock executives that Hard Rock needed Memphis more than Memphis needed Hard Rock. Soon after the death of the Beale Hard Rock Hotel deal, the announcement and subsequent closure of the Hard Rock Café occurred. 

Hopefully, with a new administration, a more open for business City of Memphis will result. If not, especially in the current interest rate environment, a gap for full-service hotel will persist to the detriment of Memphis and Shelby County.

Paul Gagliano is a life-long Memphian, a real estate broker and World Championship Hot Wing Festival Chairman, as well as a former baseball Olympian. Gagliano represented the seller in the Hard Rock Hotel discussions