Dreamscape’s $340M Rio Las Vegas Overhaul Moves Forward
New York-based Dreamscape Companies’ leadership at Rio Las Vegas was recommended for licensing by the Nevada Gaming Control Board this week.
LISTEN TO THIS ARTICLE:Miller told the board that the 35-year-old Rio Hotel & Casino, a 90-acre resort just west of the Las Vegas Strip, had suffered from what he called years of neglect prior to Dreamscape’s operational takeover. Dreamscape bought the property from Caesars Entertainment in December 2019 for $516.3 million, and Caesars continued to operate it under lease until last year.
Since taking over operations, Dreamscape has allocated roughly $340 million toward a broad renovation program. Of the property’s roughly 2,500 rooms, about 1,500 have already been refreshed. Public spaces have been updated as well: the casino floor has had new carpeting and lighting, the exterior received a new lighting design and nighttime show, and pool and convention areas have been tidied and reconfigured.
Rio Repositions as a Value-Driven Resort
Miller described the Rio as a hybrid, value-focused resort that serves both local residents and tourists. He said room occupancy has averaged in the mid-80% range for the year, but acknowledged the pressure caused by aggressive pricing moves from higher-end Las Vegas properties, which can force value brands to lower rates to maintain share.
“We’re, in many ways, restarting the property”, Miller said. Decoupling from previous operators required rebuilding customer databases and re-establishing brand trust – tasks he called essential to driving repeat visitation and group business.
In August, Peachtree Group closed a $176.5 million loan intended to help fund the Rio’s renovation efforts. Balaban said the financing strengthened the resort’s balance sheet and provided a clearer runway for capital decisions, including new restaurants and outlets that have already opened since Dreamscape took over.
Balaban noted that about 1,000 rooms remain to be renovated, a costly phase that will require continued investment and careful capital planning.
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Buffet Revival and Future Expansion Plans
Board members raised the idea of reviving the Carnival World Buffet – a long-popular attraction that was previously converted into a food court. George Assad, a member of the Gaming Control Board, joked that the buffet had been a crowd-puller with long lines and suggested it could help bring guests back to the property.
Balaban said management has already revisited the buffet’s pro forma to assess how it would fit into the Rio’s capital structure. “When you walk the floor, guests often ask about it”, he said, adding that there is clear pent-up demand from past patrons who remember the Rio’s buffet offerings fondly.
Industry observers say a restored buffet could serve as a low-cost marketing hook – buffets historically drove foot traffic and cross-property spend – but cautioned that labor and food-cost inflation mean operators must be precise when modeling returns.
With roughly 90 acres on site, the Rio’s underused land parcels have prompted a range of ideas. Miller said the property has been using parts of that space for group activations, such as go-karts and rodeos, and has considered developing additional convention acreage. Other concepts under informal review include entertainment complexes and mixed-use residential projects.
“The land is Strip-adjacent and valuable”, Miller said, noting that the team has not yet settled on a final plan. Any large-scale redevelopment would require further capital, market analysis and regulatory approvals.
Next Steps in the Rio’s Comeback
Dreamscape’s stewardship has clearly shifted the Rio from a period of relative decline to active redevelopment, but significant work remains. The licensing decision by the Nevada Gaming Commission on Oct. 23 will be an important milestone for the operator’s regulatory standing.
In the near term, the Rio will press ahead with renovations – including the remaining room refreshes – and recently announced the opening of a new steakhouse. How management balances reinvestment, potential buffet revival and strategic use of excess land will determine whether the property can re-establish a distinct market position amid rising competition on the Strip and in the Las Vegas locals market.
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