Casino operator Hard Rock International’s peril-fraught Spanish integrated resort project has hit yet another delay due to the COVID-19 pandemic’s impact on the company’s finances.
On Tuesday, Spanish media reported that HRI had requested a five-month delay of its deal to purchase land near the Catalan city of Tarragona on which the company plans to develop its €2b Hard Rock Entertainment World resort.
Land issues have plagued HRI’s Spanish ambitions for years, but March saw HRI work out a deal in which a state-run firm known as Incasòl would buy the land from its current owners for €120m, after which HRI would have until May 5 to acquire the land from Incasòl for the same price. Failure to meet that deadline would result in the government pulling the plug on this oft-delayed project.
However, like nearly all casino operators, HRI has seen its operations halted as governments across the globe ordered the closure of all non-essential businesses to minimize further COVID-19 transmission. Last week, HRI CEO Jim Allen told CNBC that it would likely take a full year before his company was able to ‘ramp up’ its business back to where it was pre-pandemic.