The two Rio All-Suite Hotel & Casino executives, along with the recent owner of the Dreamscape businesses, received the preliminary suitability recommendation from the Nevada Gaming Control Board.
The final suitability approval will be issued on January 21 when Eric Birnbaum and Thomas Ellis will have to go to the Nevada Gaming Commission to receive it.
Mr. Birnbaum stated that Dreamscape is planning for the next two years. His goal is to begin operating the property off the Strip by 2022.
Last year, Caesars sold the Rio All-Suite Hotel and Casino in Las Vegas to a company affiliated with Birnbaum’s Dreamscape. The deal it was worth $ 516.3 million.
As part of the deal, Caesars had to manage the property for two years, while paying Dreamscape an annual rent of $ 45 million. Caesars can also extend your lease for $ 7 million under the same conditions. But it seems this is not an option for Birnbaum, as it expects Dreamscape to take over the property before 2023.
Rio reopened in December
After the outbreak of the coronavirus pandemic last year, many casino giants, such as MGM Resorts, they chose to reduce its operations and work capacity, but this was not the case for Caesars properties. As one of them, Rio had to close doors in March as the state of Nevada struggled against the spread of the pandemic.
Installation reopened in December after being closed for ten months. Mr. Birnbaum stated that the pandemic significantly slowed down his plans to improve Rio quickly. Regarding the possible transformation of the Hotel and Casino campus, a completely unused 90-acre property, into a beisball Stadium of the big leagues, totally dismissed the matter.
For the purpose of Rio’s evolution, Mr. Birnbaum stated that he asked Cosmopolitan of Las Vegas CEO Bill McBeath to consult on gaming matters.
Mr. Birnbaum also expressed his hopes that his company Take charge of the Caesars property by 2023. By then, he and Mr. Ellis will need to request a more complete suitability opinion from the Board.
When it comes to running the hotel, the Dreamscape owner expects Texas-based Aimbridge Hispitality to play an important role.
For Mr. Birnbaum, the biggest challenge is matching the installation to customer profiles. It expresses its belief that Rio will offer the best of everything at a very affordable price. “We are not high-end. But we are not low quality. We equate it with affordable luxury. You get good value for what you get and it’s a good experience at a price that you don’t feel like you’re taking advantage of. “
Mr. Birnbaum hopes Rio will start showing all its potential once the pandemic is over. “Our view is that there is going to be a vaccine and as a result there is going to be a lot of pent-up demand. Our opinion – and we could be wrong – is that Vegas is prepared to really benefit from that. “
Source: “New Rio Owners Get Suitability Approval from Nevada Gaming Control Board,” Yogonet Gaming News, January 14, 2021