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Thread: Rio to be demolished soon?

  1. #1

    Rio to be demolished soon?

    This rumor has been around since 2014...but it looks like major traction has taken place within the last 24 hours

    http://www.miraclecovers.com

    "Donk down, that’s what you say to someone after they have lost 28K straight?" - Phil Hellmuth, online

  2. #2
    Burn that motherfucker to the ground.

  3. #3
    Owner Dan Druff's Avatar
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    I said on radio that I find this to be highly unlikely to be occurring in 2019, unless Caesars is 100% certain the Caesars Convention Center will be ready by late May 2020.

    They've been holding onto the Rio because it's their only viable large convention/WSOP space.

    They won't let it go until the replacement is in place.

     
    Comments
      
      Jayjami: 100% correct.
      
      sah_24: Winner !

  4. #4
    Why the favor to see the Rio demo'd? Just not a popular place or just too old and its time?

  5. #5
    The downfall of the Rio’s image is tied to the casino merger frenzy in the early 2000s and the financial crisis at the end of that decade.

    Harrah’s $9 billion purchase of Caesars in 2005 gave the company high-end assets on the Strip, including Caesars Palace and Paris, eroding the importance of the Rio.

    Then the financial crisis that erupted in 2008 devastated Caesars, which had debt exceeding $20 billion. Caesars’ cash flow that did not go to creditors went to maintaining its Strip properties.

    The company had few resources left over for the Rio, which then-Caesars Chairman Gary Lovemand called an “asset we don’t consider essential to our strategy” in 2009.

    Despite the questions surrounding its future, Marnell said the resort is unlikely to be knocked down to make way for a ballfield, a reference to rumors a year ago that the Rio would be demolished to make way for a Major League Baseball stadium. The building still has a strong structure, he said.
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    https://www.reviewjournal.com/busine...shine-1660527/
    http://www.miraclecovers.com

    "Donk down, that’s what you say to someone after they have lost 28K straight?" - Phil Hellmuth, online

  6. #6
    Not on the strip and stand alone building = no renovations for you!

  7. #7
    Owner Dan Druff's Avatar
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    Interesting article, but it's missing some important points.

    First -- and oddly the most overlooked by nearly everyone in this Rio discussion -- is the convention space issue. Rio has it. They have a large parking lot right next to the convention area, and plenty of convention space. That's why it hosts the WSOP. Caesars does not have another property like that.

    That's why the Rio has some potential value AND why Caesars can't let it go until they have their new strip convention center ready to go.

    I know I've already mentioned that in this thread (and on radio), but for whatever reason, articles like the one posted above and the Vegas gossip Twitters aren't considering this factor.

    The article also is mostly incorrect that the Rio's downfall was the 2008 financial crisis. Yes, the entire city of Las Vegas took a huge hit from that in various ways, but the Rio didn't suffer any more than the others.

    The Rio is getting no maintenance or renovation attention because off-strip properties have especially lost their luster in recent years.

    The high end market is now competitive, and perhaps saturated. The middle and middle-low market already exists on the strip, and in fact Caesars has a number of such properties. In short, everything for tourists is now on the strip, more than ever before. They just don't want to leave, nor do they find it very appealing to have to drive or Uber to get places.

    There's simply no point to go to the Rio anymore.

    Furthermore the cost to improve it significantly is prohibitive, as the article notes. It might actually be cheaper to knock it down and start over.

    Caesars tried a few strategies with the Rio, all of which failed. In the early 2010s, they tried to rebrand it as a locals destination. This didn't work, as the Rio already had two decades of history as a tourist trap, so locals couldn't make the transition in their minds. You can't just declare "this is a locals place" and expect the locals to show up. It doesn't work that way. They tried to entice locals with offers directed at them (weekly free food and freeplay), but this mainly enticed said locals to just redeem the free stuff, and leave. Locals are much more likely to do that than tourists, as locals aren't excited about a visit to a Las Vegas casino, nor are they a mostly captive audience.

    Eventually, Caesars came to the conclusion that the Rio's only value is its convention space, so they decided to leave the property in a holding pattern. No renovations, no improvements, no more Show in the Sky or Brazilian party theme, and minimal maintenance directed at keeping it barely operational as a low-mid level property.

    No more loss leaders, either. Anything operating at the Rio, such as shows or restaurants, had to turn a profit consistently, or they would be closed. This is why, for example, there is no room service after 11pm. Everything at the Rio has to stand on its own two feet.

    The article did state that Caesars determined for certain in 2009 that the Rio wasn't a key asset, and that's correct. It's necessary for the conventions and WSOP. Once that is no longer a factor, it will be sold. It's a minor headache to maintain for Caesars right now. They'd rather sell it and get the cash. But right now they just can't.

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