Resort revives under new management
Paragon Gaming, which took over operations of the Riviera resort on the northern Las Vegas Strip last year, may invest up to $100 million to renovate the property, which is more than 50 years old.
Dianna Bennett, daughter of late Vegas gaming legend William Bennett, assumed control of the Riviera in June 2013, after former CEO Andy Choy was ousted. Since then, Paragon has used a $6 million capital improvement fund from partner Starwood Capital to spruce up the historic property, replacing carpeting and remodeling the showroom, among other cosmetic improvements. Now the resort could be in line for a $100 million overhaul.
The Riviera has filed for bankruptcy three times in its history, in 1985, 1991 and 2010. But it’s doing better, reports Vegasinc.com. In the first six months of 2014, Riviera Holdings increased the net revenue by 39 percent and trimmed the net loss by more than half compared with the same period last year.
When Paragon took control, Bennett and Vice President George Scott Menke promised to “really put it back to Strip standards.”
“It basically came down to what we know best,” Bennett said. “We gave the employees back their pride … It was basic ‘casino operations 101.’ ”
Paragon was established in 2000 as a privately held company that included Indian tribes in the Western U.S. The company now operates three casinos in western Canada and soon will break ground on a 500-room hotel-casino in Vancouver, British Columbia.
According to Union Gaming, the Riviera “is now generating profitable EBITDA in a turnaround led by both positive operational changes and a broader rebound in Las Vegas Strip trends.”
The Riviera features more than 150,000 square feet of meeting space, so “the pick-up in the convention segment has likely helped room pricing and overall profitability.”
The Nevada Gaming Control Board has approved Paragon’s request to take a percentage of gaming revenue generated at the Riviera; the state Gaming Commission also must sign off on that application.
