Hybrid simulation is an efficient method to obtain the response of an emulated system subjected to dynamic excitation by combining loading-rate-sensitive numerical and physical substructures. In such simulations, the interfaces between physical and numerical substructures are usually implemented using transfer systems, i.e., an arrangement of actuators. To guarantee high fidelity of the simulation outcome, conducting hybrid simulation in hard real-time is required. Albeit attractive, real-time hybrid simulation comes with numerous challenges, such as the inherent dynamics of the transfer system used, along with communication interrupts between numerical and physical substructures, that introduce time delays to the overall hybrid model altering the dynamic response of the system under consideration. Hence, implementation of adequate control techniques to compensate for such delays is necessary. In this study, a novel control strategy is proposed for time delay compensation of actuator dynamics in hard real-time hybrid simulation applications. The method is based on designing a transfer system controller consisting of a robust model predictive controller along with a polynomial extrapolation algorithm and a Kalman filter. This paper presents a proposed tracking controller first, followed by two virtual real-time hybrid simulation parametric case studies, which serve to validate the performance and robustness of the novel control strategy. Real-time hybrid simulation using the proposed control scheme is demonstrated to be effective for structural performance assessment.