According to different sources close to the deal, Codere and Hard Rock have agreed to transfer land in Mexico City for the American giant to build its second guitar-shaped hotel. The first one, which will open its doors on October 24, is located in Fort Lauderdale, Florida (United States). The complex, with 35 floors and a casino, has involved an investment of US$ 1.5 billion.
The one that will build with Codere in Mexico will have 48 floors and will also have a betting area that will be operated by Hard Rock. Total investment, including debt, has been valued at US$ 1 billion. The Madrid-based group will keep 40% of the company holding the asset thanks to the contribution of the land where the hotel and casino will be located, while Hard Rock will be the owner of the remaining 60% and will be in charge of searching the financing.
Both companies have put themselves in the hands of Credit Suisse to get a bank loan to develop the tourist complex, pending the latest authorizations from local administrations. The hotel is already licensed to build 44 floors, but the US group wants to reach up to 48.
On the other hand, Credit Suisse is advising Codere on the potential purchase of 17 casinos in Mexico from the audiovisual group Televisa. The Mexican holding company has put up its network of gaming centers for sale, in an amount close to 300 million euros. A relevant number for Codere, which, after its stock market crash in 2018, has gone from worth 1.2 billion to just 390 million today.
Source: elconfidencial.com
