Rio to build new 3,000-room hotel

Thursday, Oct. 30, 1997 | 10:27 a.m.

A new 3,000-room hotel will be built by the developers of the Rio hotel-casino on 43 acres northeast of the existing property, the publicly traded company announced today.

Rio officials unveiled the first phase of a new master plan that would create a new road access to the Las Vegas Strip, site work for a future resort and additions to the existing property. The price tag on the first phase: $200 million.

Although a theme hasn't been selected for the new property and a timetable hasn't been unveiled, a release announcing the new master plan detailed improvements scheduled for the existing property.

According to the release, the improvements include a 100,000-square-foot multipurpose center to house entertainment, meeting rooms, special events and conventions. In addition, there will be 10,000 square feet of new retail space, nine luxury suites, an expanded outdoor entertainment area with an additional swimming pool, a 650-car valet parking garage and a Chinese restaurant.

The plan also calls for 20,000 square feet of additional exhibition space in the Masquerade Village, an expansion of the Shutters high-roller gaming lounge, creation of a concierge suite level in both of the Rio's existing hotel towers, and an expansion of the resort's spa.

The additions, along with the new road, are scheduled to open in stages through 1998 and early 1999, the release said.

Company officials indicated they would evaluate the capital markets, as well as current cash flow and cash on hand, to fund the project.

Rio President James Barrett was unavailable this morning to explain the exact proximity of the new development to the existing property, but the company has quietly been buying property northeast of the resort for future expansion.

The new access to the Strip involves the extension of Twain Avenue east.

"The extension of Twain Avenue will give the Rio additional access to the Las Vegas Strip," Rio Chairman Anthony Marnell said in the release. "It will also create a major east-west artery for the Las Vegas Valley."

The Rio opened as a property catering to locals on 30 acres in 1990 and has quickly developed into a major player in the Southern Nevada gaming industry.

Using a strategy of providing suites to all guests, the property expanded to 2,500 rooms with a 120,000-square-foot casino with 2,500 slot machines and about 100 table games.

Earlier this year, the Rio opened its $25 million Masquerade Show in the Sky, a free entertainment spectacle featuring a parade of floats suspended from the ceiling. Meanwhile, the company developed an upscale retail area overlooking a new casino and the show and built 13 restaurants and a world-class wine collection.

The company signed popular impressionist Danny Gans to perform at its showroom, but hit a public relations speedbump when it became embroiled in a controversy over the acquisition of an 18-hole golf course in the Seven Hills residential area in Henderson.

The company was named in a suit by residents who say they believed they purchased access to the golf course when they bought their homes. The Rio Secco Golf Club and company management promised to give public access to the course by paying $300-a-round greens fees.