€2 Billion Hard Rock Catalonia Project Given Green Light

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Wednesday, May 30th, 2018 | Written by Lucy Brown

Last summer, US casino operator Hard Rock International (HRI) and Melco International Development unveiled their plan to build an integrated resort near Barcelona, Spain. Melco subsequently bowed out to concentrate its efforts on building Europe’s largest casino resort in the Republic of Cyprus, leaving Hard Rock as the project’s sole bidder.

While Hard Rock had expected to be issued a license in September of last year, approval was postponed pending a closer examination of various technical requirements associated with the €2 billion ($2.3bn) project. On May 25th, however, the Official Gazette of the Government of Catalonia finally announced that the casino had received approval by authorities, with further details of the project expected to be presented to the public next month.

Hard Rock Entertainment World

The Hard Rock Entertainment World will be situated in the Vila-seca and Salou region in the province of Tarragona in Catalonia, with the area designated by the Catalan government as a Center for Recreation and Tourism (CRT).

After securing the necessary building permits and paying a €10 million deposit, Hard Rock will then be given three years to start the first phase of the project costing €700 million. The Hard Rock Hotel & Casino Tarragona will be located near to Barcelona’s international airport, and once completed will feature two hotels with 1,100 rooms, 75 retail shops, a 15,000 seat theater, and a huge 6k-square-meter pool area.

The venue will also offer 1,200 slot machines and 100 gaming tables at its 10,000-square-meter gambling area, making it one of the biggest casinos in Europe. It is further forecast to create 11,500 jobs, including during its construction phase, with the whole integrated resort expected to result in a €1.3 billion annual boost to the local economy.

Three Times a Charm

Spain has gained a reputation for raising then dashing the hopes of casino companies looking to set up on the Iberian Peninsula. In 2013, for instance, Las Vegas Sands had proposed building a $30 billion mega-resort near Madrid that was to feature 12 hotels, 6 casinos, and conference facilities, as well as retail shops, bars, restaurants, cinemas, and golf courses. Despite the prospect of creating an additional 250,000 jobs in the country, however, a number of objections were raised against the project ultimately leading to its demise, including environmental concerns, and worries that it would lead to an increase in crime and prostitution in the area.

In 2017, US casino firm Cordish Gaming also threatened to sue Madrid after its plan to construct a $2.2 billion casino, hotel and resort complex on land near Spain’s capital city were rejected a second time. Commenting upon the dispute at the time, Engracia Hidalgo, Madrid’s Minister of Economy, Employment and Finance, stated that the project was rejected as it would have placed a significant burden on the budget of Madrid “in terms of investment, operating costs and annual maintenance of the transport infrastructure.”

It would seem that three times is a charm, though, with a ceremony marking the approval of the new Hard Rock integrated resort expected in the coming weeks. Commenting upon the development, HRI CEO Jim Allen said:

“For many years, the world’s biggest gaming companies have been trying for the opportunity to bring an IR to Europe. We are proud that Hard Rock was chosen to bring its world class entertainment brand to the region.”

Hard Rock Expansion

Founded in 1971, the Hard Rock brand was acquired by the the Seminole Tribe of Florida in 2007 for $965 million, representing one of the biggest purchases ever made by an American Indian tribe. A decade later, and the operator currently boasts 170+ music-themed cafés in more than 75 countries around the world, in addition to a number of hotels and casinos.

Furthermore, Hard Rock has aggressively been pursuing an international expansion of late, with the firm granted a license to build Europe’s biggest integrated resort in Cyprus, an island that up until now has had no legal casino industry. The company also purchased the shuttered Trump Taj Mahal in Atlantic City for $50 million, and after spending $375 million revamping the property is expected to open its doors for business on June 28th. The Hard Rock Hotel & Casino Atlantic City, as it will be known, will employ around 3,500 people, and concentrate on offering gaming and entertainment attractions, with its huge musical lineup planned including the likes of Kid Rock, Blake Shelton, Toby Keith, Bush, Florida Georgia Line, Third Eye Blind, and Rascal Flatts,