Dive Brief:
- Hyatt Hotels Corporation announced Friday that Rio Hotel & Casino Las Vegas is undergoing a $340 million renovation in preparation to join the Destination by Hyatt brand this fall.
- The multiphase renovation will touch its guest rooms, amenities and public spaces ahead of the 2,500-key property’s transition into Hyatt’s Independent Collection. As of March 1, Rio Hotel & Casino joined the World of Hyatt loyalty program, allowing members to earn and redeem points for qualifying stays at the Hyatt-affiliated property, the hotel company announced.
- Rio Hotel & Casino will expand Hyatt’s brand footprint in Las Vegas, a leading market for leisure and convention travel. Hyatt competitor Marriott International is also growing in the market, converting several iconic MGM Resorts properties along the Strip under its brands.
Dive Insight:
Leading up to its transition to the Destination by Hyatt brand, Rio Hotel & Casino Las Vegas is undergoing a full renovation and redesign.
The first phase of renovations, which began last year and is near completion, includes “extensive upgrades and enhancements” to the 1,501-room Ipanema Tower, arrival area, building exterior, lobby, gaming floor, sports book, multiple food and beverage outlets, meeting spaces and outdoor pool area, Hyatt detailed. Phase two will revamp the hotel’s 1,012 Masquerade Tower guest rooms and public areas.
Upon completion this fall, the “redefined” hotel will “meet the demand of Las Vegas’ burgeoning meetings and event business,” Hyatt said, with more than 220,000 square feet of renovated meetings and events space.
Las Vegas has seen a boost in hotel performance of late driven by heightened group demand, according to CoStar. And operators including Wynn Resorts and MGM Resorts shared during February earnings calls that they’re optimistic about group and business travel demand in the market in the months ahead.
Hyatt is also looking to strengthen its presence in one of the “most visited leisure markets in the world,” the company said.
Recent events like Formula 1’s inaugural Las Vegas Grand Prix in November and Super Bowl LVIII last month drove increased tourism and significant revenue gains for Las Vegas hotels.
Rio Hotel & Casino will mark the first Destination by Hyatt hotel in Nevada and the third Hyatt hotel in the Las Vegas area, the company said. The property is owned and operated by New York-based real estate investor Dreamscape, which acquired it from Caesars Entertainment for $516 million in 2019.
Hyatt peer Marriott is similarly expanding in Las Vegas, looking to capitalize on the market’s positive growth fundamentals.
Through an exclusive long-term strategic licensing agreement, some 12 MGM Las Vegas properties will convert under Marriott brands. The Bellagio Resort & Casino, for example, will join The Luxury Collection, and Aria Resort & Casino will join Autograph Collection.
