Paul Szydelko
Dreamscape Cos. founder Eric Birnbaum said the Rio Hotel & Casino in Las Vegas is "starting from a really good spot" amid a $350 million renovation. Dreamscape, which acquired the property from Caesars Entertainment in 2019 for $516.3 million, took over the resort's operations last October after a leasing arrangement concluded. I talked to the New York-based real estate developer earlier this month to get more insight about the Rio, on Flamingo Road just west of the Las Vegas Strip. The conversation was edited for length and clarity.
Q: What did you see in the Rio in 2019?
A: It is an intriguing location, and it's an intriguing asset. What intrigues me the most was how it was built and its bones. Its rooms are, on average, about 600 square feet. So the rooms are exceptionally large; they're all suites. It has an unbelievable convention facility … over 250,000 square feet. Those two aspects gave us what we felt was a differentiating factor. Couple that with the fact that it sits on 90 acres. Its location makes it very compelling not only to the transient customer but also for the local customer. When you add all those things up, with our vision for what it will ultimately end up being, we're starting from a really good spot.
Eric Birnbaum Photo Credit: Dreamscape Cos.
Q: What have you learned about Las Vegas since then?
A: It only continues to get better. It once was deemed as a gaming town. Over time, it certainly morphed (beyond gaming) into entertainment, and then food and beverage, and now sports. I just continue to see that trend. That coupled with migration from out of state into Vegas for tax reasons, and things of that nature have made it a desirable place to live. The wind is at its back, if you will. The macro's very compelling.
Q: Describe the mission statement, the mood board, for improvements.
A: One of the things that we strive very hard to accomplish is that everything from the moment you make the turn in … and through the main arrival, the porte cochere, then into the lobby, everything ties together. Everything seems like it's one, cohesive story. What we have attempted to do is make this a cohesive story from the moment you enter until the moment you leave, and everything in between.
Q: In a city that's gone away from heavily themed resorts, what's the most important element of that storytelling?
A: We're certainly not trying to position this in any sort of themed way. We certainly do not want this to feel like a cartoon in any way, shape or form. It's just trying to find the right palette, the right sensibility. Ultimately, it all comes down to trying to focus on the five senses and incorporate that into an entire experience. Why you feel good in one space versus another is a very subjective thing. But it's very important to have a clear movie in your mind of what you're trying to do. And then execute it. For us, it really is a sense of trying to be authentic.
• Related: Here's what's new at the Rio Hotel & Casino
Q: What in the renovation so far has that feel that you're trying to create?
A: We just brought online our food hall that certainly accomplishes a very authentic, organic [feel]. What I don't like is something that feels very commercial and institutional; it has to have some depth and soul. I just come back to the word "authentic." I think we achieved that in the food hall, I think we achieved that on the pool deck. I think we achieved that in the 1,500 guestrooms that have been refurbished and renovated.
Q: The Rio has been almost synonymous with magicians Penn & Teller. What do they mean to the property as you continue the relationship?
A: We're very happy to have them. We haven't shied away from the things that have been successful at the Rio. The Rio was a very successful, noteworthy asset back in its heyday, and a lot of people have a lot of affinity and great memories. The things that have worked and the things that are really at the Rio's essence are things that we're trying to lean into and refine and re-energize.
Q: For guests who haven't visited in 10 to 15 years, what would they recognize as different?
A: We're spending $350 million across the board renovating the assets. So hopefully people are going to not only appreciate everything from a visual standpoint, but also (their) interactions and experience with our staff, the hospitality, the cleanliness -- all the little things that make up a good experience.
Q: Is there a key demographic you're seeking in this market?
A: We use the [term] "accessible luxury." We want guests to feel like that they're getting good value for the experience, and that's what we're primarily focused on. Where that puts us within the market is really up to the market to decide.