Hyatt just announced a surprise expansion in Las Vegas.
Rio Las Vegas becomes a Hyatt
The 2,500-room hotel in Rio Las Vegas will be renovated and then converted into a Hyatt hotel. This multi-phase project is expected to bring several Hyatt full-service offerings to Las Vegas.
Here’s what we know so far about what to expect:
- The 2,500-room Rio Las Vegas is undergoing a major redevelopment of current public spaces, including games, retail, food and beverage, spa and fitness, and a pool relaxation deck
- One of the hotel’s existing towers will be renovated, and when completed, the tower will become a Hyatt Regency hotel with 1,501 rooms and standard guest rooms averaging 50 square meters
- The rest of the Rio’s guest rooms are expected to have one or more other Hyatt full-service brands after the renovation
- We do not yet have a precise schedule with which this will happen
Rio Las Vegas is going through a major renovation
The context for this deal is interesting:
- Dreamscape is the current owner of the Rio. in December 2019, it bought the hotel from Caesars for $ 516 million
- The agreement stipulated that the hotel would operate as a Caesars Hotel for at least two years (which will take us through the end of 2021).
- After this clause expires, Dreamscape clearly has other plans for the property
Kimo Bertram, Vice President of Real Estate & Development at Hyatt, describes it as follows:
“We are thrilled that Dreamscape will help bring multiple Hyatt full service brands to Las Vegas, starting with a Hyatt Regency hotel that we believe will deliver on the Hyatt Regency brand promise to to create meaningful connections in modern spaces that are intended for sharing and contact and that work together. We know Las Vegas is an important destination for our guests, World of Hyatt members, and customers. This project is an important step for Hyatt as we continue to grow our brands in markets that are most important to our loyal travelers. “
What other Hyatt brands could this hotel be?
I’m curious to see which other brands Hyatt would like to include in this development:
- They will all be full service so don’t expect a Hyatt Place or Hyatt House
- I don’t think we’ll see a Grand Hyatt as Grand Hyatts are usually huge and the Hyatt Regency will already have over 1,500 rooms
- I would guess we’ll see either an Andaz or a Thompson as they are brands that complement Hyatt Regency. Thompson seems particularly popular right now
- While I’m not convinced this is going to happen, it would certainly be cool if it was part of the Park Hyatt development
Could we see part of the hotel becoming a Thompson?
Hyatt’s MGM M Life partnership remains in place
While this will be Hyatt’s first mega-hotel in Las Vegas, World of Hyatt members have long been well protected in the city thanks to Hyatt’s partnership with MGM. It is stated that this development will have no impact on Hyatt’s existing strategic loyalty alliance with MGM, though only time will tell if it actually does.
Hyatt will soon have a direct competitor to MGM’s real estate, so we’ll see how MGM thinks about this.
Hyatt’s partnership with MGM will not change (as of now).
This is an exciting addition to Hyatt
While I’m not a huge Las Vegas fan personally, there are many reasons for World of Hyatt members to be excited about this property:
- Hyatt’s partnership with MGM is fantastic, but it doesn’t give you the same benefits that you would get from staying at a Hyatt
- Hyatt Globalist members have a lot to win here, from being able to use suite upgrade awards to confirm a suite, to waiving resort and destination fees (which are huge in Las Vegas), to free breakfast. This could very well become a popular new place for the “mattress run”.
This could turn out to be a great mattress runner hotel
The Rio Las Vegas will be renamed Hyatt after a major renovation. The hotel has more than 2,500 rooms – a 1,500-room tower is being converted into a Hyatt Regency, and other Hyatt brands are expected to join the development.
Personally, I think we will most likely see a Thompson as well, but I could be wrong and it is also possible that we will see several additional full service brands.
What do you think of the new Hyatt Las Vegas and which full-service brands would you like to include in the development?