increase revenue, and intended to appeal to a more affluent clientele who would also spend money on the resort's gaming and restaurants. Morgans did not have any immediate or specific plans for the vacant property adjacent to the Hard Rock. Analysts and investors were initially skeptical about Morgans' financial ability to purchase the Hard Rock, as the company was a boutique hotel operator with only eight properties. In November 2006, Morgans announced that it had signed an agreement with Credit Suisse's DLJ Merchant Banking Partners to help finance its purchase of the Hard Rock. Through the deal, the two companies would form a joint venture, Hard Rock Holdings, which would own the resort. DLJ and its affiliates would invest up to $250 million in Hard Rock Holdings. The Hard Rock Hotel was Morgans' first casino venture. Morgans announced that Golden Gaming would temporarily operate the casino, until Morgans received its own gaming license, a process that was expected to take about a year. Golden Gaming was approved as the interim casino operator by Nevada gaming regulators in January 2007. Golden Gaming would receive a management fee to operate the casino and could share part of the gaming revenue after expenses. The balance of any revenue from the casino would be placed in an escrow account which would go to Morgans once it became licensed to operate the casino. In addition, around 520 of the Hard Rock's employees would be loaned to Golden Gaming for the casino operations. The deal was described by gaming regulators as being somewhat uncommon. The $770 million purchase of the Hard Rock was completed on February 2, 2007, after nearly nine months. DLJ invested $100 million to help fund the purchase of the Hard Rock, gaining a two-thirds investment in the resort. Morgans contributed $50 million to $60 million for a one-third stake, and also operated the non-gaming areas of the resort. The resort's environmental efforts were continued under the new ownership. Renovation Details for a $750 million expansion and renovation project were unveiled in March 2007. The project would double the size of the resort with additional hotel rooms, convention space, and a larger concert venue. The hotel expansion would consist of a 15-story tower with 550 rooms and a separate VIP tower with 400 suites. The expansion was scheduled to begin construction in October 2007 for completion in mid-2009, although renovations to the existing