Eric Birnbaum, owner of the newly formed Dreamscape Companies, says his company is considering redeveloping both the Rio All-Suite Hotel and Casino and the land it acquired in its purchase of the off-Strip resort. But Birnbaum still hasn’t revealed his plans for the off-Strip property.
“We think both the land and casino are valuable and we plan to maximize the value of each,” Birnbaum told Gaming Today. He said they have a strategy for the property, “but it’s too early to divulge.”
Dreamscape recently closed on its acquisition of the Rio. Caesars Entertainment will continue for at least two years to run the 2,500-room property and will pay an annual lease of $45 million to Dreamscape.
“Improvements will be made after the sales lease back ends,” Birnbaum said.
Dreamscape is owned and controlled by Imperial Companies, a firm co-founded by Birnbaum. His company also operates the Westin Las Vegas.
“We entered into a sales lease back with Caesars,” Birnbaum said, “They are effectively mater leasing the property from us for two years with a one-year extension at our option. They simply pay a fixed rent during that time and manage the asset.”
Caesars has said the Rio will remain part of the Caesars Rewards network during the lease term, and guests are not expected to see changes because of the sale.
The company also said the World Series of Poker will remain at the Rio in 2020, and Caesars will keep rights to the tournament after that.