Dreamscape Cos., the New York real estate investor that owns the Rio Hotel & Casino, has raised $850 million to remodel the Las Vegas resort and invest in similar properties.
Eric Birnbaum, Dreamscape’s chief executive officer and founder, said in an interview he’s created a real estate investment trust to own the 2,500-room resort. He’s also created a property management company. Birnbaum sees an opportunity to use those vehicles to acquire more gambling and entertainment-related assets as consumers return to business and leisure travel.
“The pandemic has taught us that people crave experiences and being with others,” he said.
REITs, which are exempt from corporate income taxes and pass along most of their earnings to shareholders, have become all the rage in the casino industry.