HardRock to Invest €2bn in Future Leisure Mega-Complex in Tarragona

25 May 2018 – Eje Prime

Hard Rock has been given the green light to build its gaming and leisure mega-complex in Tarragona. The Generalitat de Cataluña has unblocked the plans of the US group, which is going to invest €2 billion in this complex. The economic plan includes one line item amounting to €300 million for the purchase of land, located in Vila-seca, from CaixaBank.

The Ministry of Economy reported on Friday that it had awarded the US company the authorisation to install and operate a gaming casino, which will be located at the centre of the project and which is going to be called Hard Rock Entertainment World.

The next step that the group must take is to make a €10 million deposit within the next ten days, although that amount includes the €3 million that the company already paid in June last year to guarantee its involvement in the project.

Despite those assurances, Hard Rock has not had a rival in the public tender that was opened to develop the complex. The first multi-national leisure project in Spain will have a gaming area spanning 7,595 m2, as well as two large hotels with a surface area of 63,000 m2.

Similarly, the US company will promote a commercial space measuring 15,000 m2 in which 6,000 m2 will be dedicated to an extensive restaurant offering and the same amount of space will be used for the centre itself, where leisure and live entertainment spaces will also be opened.

€700 million to begin with

During the first phase of the project, Hard Rock is going to invest €700 million to purchase the land, cover the construction and financing costs and to acquire furniture, amongst other aspects.

The group expects that its multi-million euro investment to set up this mega-complex, will allow it to reach an economic impact in the tourist area of Tarragona, where it is located, on the Costa Dorada, of €1.3 billion. The Port Aventura World leisure resort is located in the vicinity of the future Hard Rock Entertainment World.

Original story: Eje Prime

Translation: Carmel Drake

Palladium To Invest €450M In New Openings & Renovations

23 January 2017 – Cinco Días

Palladium, the hotel group controlled by the Matutes family, is planning to invest more than €450 million in new openings and renovating its existing establishments, both in Spain as well as in the Caribbean.

The hotel chain, which recorded a turnover of €558 million in 2016, up by 14% compared to the year before, said that it had completed a good year. It also appeared optimistic about the performance of the holiday market in Spain this year, especially in the Balearic Islands, where it has a larger market share.

Abel Matutes Prats, CEO of the company, said that the firm’s growth strategy in terms of number of hotels now involves managing establishments owned by third parties. “We are ready to grow quite a lot in the urban and holiday segments as a hotel manager”, he said.

The company, which has signed an agreement with Hard Rock to bring the hotel brand to mainland Spain – the US firm already has two establishments on the islands, one in Ibiza and another in Tenerife – acknowledges that it has some plans on the table that have not been finalised yet. Not so long ago, Hard Rock was mentioned as the best positioned player to manage the hotel in Edificio España in Madrid.

“There are a couple of hotels in the pipeline, but nothing has been decided yet”, said Matutes Prats, who defends this alliance as “a well-matched marriage”, which is choosing to focus on its latest addition, the opening in Tenerife, at the moment, but which is not ruling out future developments in urban destinations.

The businessman highlights the arrival of Palladium in Asia. “One day we will have to make the jump, but right now it does not form part of our plans. When we move over there, it will be to launch something big”, he said.

Original story: Cinco Días (by L.S.)

Translation: Carmel Drake

Edificio España Is Set To Become A Hard Rock Hotel

4 October 2016 – El Confidencial

The countdown to the launch of Trinitario Casanova’s project in Edificio España has begun. The businessman, who has reached an agreement with the Wanda Group to acquire the property, has been given the green light by the Town Hall of Madrid for his plans to convert the skyscraper into a Las Vegas style hotel.

Last Friday, the department of town planning, led by José Manuel Calvo, approved the request submitted by the Baraka Group, the Levantine businessman’s holding company. Its request involves turning the majority of the skyscraper into a large hotel, whilst retaining the protected elements.

With this approval, Casanova now has all of the pieces in place to seal his second major agreement of the year: a 30-year contract with Hard Rock, the hotel empire owned by the Seminole Indians, who have presented Baraka with a firm offer to take over the operation of the Madrilenian skyscraper.

Sources at the Spanish company have acknowledged that conversations are at a very advanced stage, in a process organised by JLL, but that the final rubber stamp still needs to be given. That milestone that will come once the legal representatives of both parties have been completed their corresponding reviews.

The Hard Rock project for Edificio España involves opening a five-star hotel containing almost 600 rooms. The property will be equipped with restaurant and entertainment offerings and will also contain large suites and allow for the use of the roof terrace.

In addition, the approximately 150 parking spaces that the skyscraper already has in its second basement are sufficient for the North American group’s plans. The future hotel will occupy 22 floors of the property, spanning around 67,400 sqm, given that Baraka has reserved the first three floors, covering almost 15,000 sqm, for a large shopping arcade and is, currently, holding conversations with several potential operators.

Hard Rock Hotel’s commitment to Spain

Hard Rock has been looking for a site on which to open a major hotel establishment in Madrid for years and the possibility of doing so on Gran Vía is an opportunity that it does not want to miss, given that this thoroughfare offer all of the leisure, history, shopping and cultural offerings that are demanded by the profile of international tourist that the chain attracts.

The arrival of Edificio España onto the market also comes at a particularly sensitive time for the North American company, which, after several years negotiating with Enrique Bañuelos over the construction of a resort in the BCN World project, has now been told that the Catalan Government has recalculated all of its numbers for the complex and so its future is up in the air.

In Spain, Hard Rock Hotel also holds a concession agreement with Palladium, the group owned by the Matutes family, for its properties on the Balearic and Canary Islands, where the group…owns the Hard Rock Ibiza and Hard Rock Tenerife.

Having received the favourable report from the Town Hall of Madrid, Trinitario Casanova now expects to complete the definitive purchase of Edificio España from the Wanda Group by the middle of the month, and he will then be able to begin the renovation of the property, which is expected to take almost two years.

With this calendar on the table, the future Hard Rock Madrid may open its doors at the end of 2018, which is when the Four Seasons hotel, currently being constructed in the Canalejas Complex, is also due to open. Canalejas is another of the most awaited and controversial developments in the capital, although it should receive its final blessing from Manuela Carmena’s team within the next few days.

Original story: El Confidencial (by Ruth Ugalde)

Translation: Carmel Drake

HI Partners Buys 2 Princess de Estepona Hotels For Matutes

8 July 2016 – Preferente.com

The fund HI Partners is on the verge of completing the purchase of two hotels from the Princess de Estepona chain, which will be operated by Matutes under the Hard Rock brand. The agreement is due to be signed on 15 July.

HI Partners and the Cabrera family, owner of the Princess hotel chain, have been negotiating this deal for more than six months. Matutes was the group chosen by the funds to operate the two properties from the get-go.

Initially, the Ibiza-based group analysed the conversion of the complex into a Ushuaïa model hotel, but in the end it is going to opt for the Hard Rock brand, just like it is doing in other Spanish destinations outside of the island of Ibiza.

The representatives of HI Partners held meetings with members of the Cabrera and Matutes families in Ibiza, when they visited the island in the middle of May. There, they saw the operations of Ushuaïa at first hand.

The fund Starwood holds a stake in HI Partners, but the fund’s main shareholder is Banco de Sabadell, which has a strong presence in the hotel sector. The fund previously tried to close a deal with the Amengual family, but that did not go ahead in the end.

The hotels in question are the Andalucía Princess, a four-star 383-room property; and the Costa del Sol Princess, with 118 rooms (including 15 family rooms) and 12 suites.

Original story: Preferente.com

Translation: Carmel Drake