The Government of Catalonia this week granted extension of the deadline for the acquisition of the portion of land where US casino and hospitality operator Hard Rock International plans to build a €2 billion integrated resort.
In 2017, Hard Rock won the right to develop a mega-resort in the Tourist Recreation Center of Vila-seca and Salou (in the Catalan province of Tarragona), right next PortAventura Park.
However, the project has over the years hit a number of snags, mostly related to the acquisition of land for the proposed multi-purpose resort.
Hard Rock finally worked out a deal with the Government of Catalonia in March, under the terms of which state-run company Incasòl would buy the land designated for the resort from its current owner – Spanish investment giant La Caixa – for €120 million. Incasòl would then sell the land to Hard Rock for the same price.
The US casino and hospitality operator had until May 5 to close the land acquisition arrangement. However, the company asked for five-month extension of that deadline as the shutdown of its properties due to the coronavirus pandemic has been eating into its profits.
As mentioned above, the Catalan government has agreed to grant the requested five-month extension. Hard Rock now has until October 5 to complete the transaction.
The Hard Rock Entertainment World Project
Hard Rock Entertainment World will be a mega-resort with multiple attractions, hotels, food and beverage facilities, and a casino. The property will be Hard Rock’s first hotel and casino complex in Europe.
As mentioned earlier, the company plans to spend €2 billion on the scheme. That price tag includes construction costs, land acquisition costs, and the development of all the related infrastructure.
The resort will occupy a 745,000-square-meter site. The casino alone will spread over 7,595 square meters. The mega-complex will also include two hotels that will occupy a total of 63,000 square meters.
Retail space at the resort will spread over 15,000 square meters, while leisure and live entertainment facilities will occupy more than 6,000 square meters. Plans include the development of a concert hall with capacity for 15,000 people.
Hard Rock plans to materialize the project in several phases. Phase One is estimated to cost the company about €700 million.
The gaming and hospitality company expects the scheme to create more than 11,500 construction and permanent, direct and indirect jobs and to generate about €1.3 billion in annual economic impact.
Aside from Spain, Hard Rock has also been looking to build an integrated resort at the site of a defunct airport near the Greek capital, Athens. The company was one of two bidders for the right to build such a property, but the Hellenic Gaming Commission disqualified it from the race early this year and picked the other contender – US-based gaming and hospitality operator Mohegan Gaming & Entertainment.
Hard Rock has appealed the regulator’s decision in Greek court and this week said that it is confident in the success of its legal motion.
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