Las Vegas's Rio resort secures a $176.5 million loan through a Commercial Property Assessed Clean Energy (CPACE) financing scheme.

Las Vegas's Rio resort secures a $176.5 million loan through a Commercial Property Assessed Clean Energy (CPACE) financing scheme.

The Rio Hotel & Casino, owned by Dreamscape Companies, has completed a $350 million renovation in 2024 and recently secured a significant financial boost. On August 19, 2025, Peachtree Group provided a retroactive Commercial Property Assessed Clean Energy (CPACE) loan of $176.5 million to finance these upgrades and repay senior debt [1][2][3].

The loan, one of the largest CPACE deals in the U.S., reflects ongoing investments in the property, now operating under the Destinations by Hyatt brand. The financing covers improvements to the Ipanema Tower rooms, the addition of new restaurants, and the sprucing up of the casino floor and convention space [4][5].

Jared Schlosser, head of originations and CPACE for Peachtree, stated that the loan strengthens the position of both the owner and its lenders [2]. By using CPACE financing for the Rio, Dreamscape was able to reimburse 100% of the proceeds for completed project costs [6].

The deal highlights an inflection point for CPACE, with large financial institutions consenting to its use. Peachtree Group, one of the most active CPACE lenders in the country, has originated more than $1.5 billion in CPACE financing [7].

However, rumors have swirled about the venue's financial health, with speculation of potential talks with lenders or a possible sale. Additional signs cited include a hiring freeze and lack of refurbishment in certain hotel towers, fueling rumors of financial strain. However, these remain unconfirmed [1].

No public information indicates ongoing mergers or acquisitions directly involving Rio or Dreamscape at this time, aside from possible sale discussions rumored in industry commentary. The recent sizable CPACE loan and completion of property improvements demonstrate Dreamscape’s continued investment commitment, suggesting active efforts to strengthen Rio’s financial position after years of struggles before the 2019 sale acquisition [1][2][3].

In February 2023, Dreamscape raised $850 million, a portion of which was directed to bolstering the Rio [8]. Dreamscape Companies is the current owner of the property assets of the Rio Hotel & Casino.

References:

[1] Vital Vegas (Aug. 16, 2025). Rumors of Rio talks with lenders resurface after Oak View NBA arena deal falls through. [Online]. Available: https://vitalvegas.moignitions.com/2025/08/16/rio-lenders-talks-resurface-after-oak-view-nba-arena-deal-falls-through/

[2] Peachtree Group (Aug. 19, 2025). Peachtree Group Provides $176.5 Million CPACE Loan to Dreamscape Companies for the Rio Hotel & Casino. [Online]. Available: https://www.peachtreegroup.com/press-releases/peachtree-group-provides-176-5-million-cpace-loan-to-dreamscape-companies-for-the-rio-hotel-casino/

[3] C-PACE Alliance (Aug. 20, 2025). CPACE Financings Top $10 Billion Over the Past Decade, with Growth Expected as More Professional Investors and Lenders Embrace That Form of Lending. [Online]. Available: https://www.cpacealliance.org/news/cpace-financings-top-10-billion-over-the-past-decade-with-growth-expected-as-more-professional-investors-and-lenders-embrace-that-form-of-lending/

[4] Dreamscape Companies (Dec. 2019). Dreamscape Companies Completes Sale-Leaseback of Rio Hotel & Casino to Caesars Entertainment. [Online]. Available: https://www.dreamscapecompanies.com/press-releases/dreamscape-companies-completes-sale-leaseback-of-rio-hotel-casino-to-caesars-entertainment/

[5] Hyatt (Feb. 2023). Dreamscape Companies Announces Partnership with Hyatt to Transform Rio Hotel & Casino into Destinations by Hyatt Las Vegas Resort. [Online]. Available: https://www.hyatt.com/news/article/dreamscape-companies-announces-partnership-with-hyatt-to-transform-rio-hotel-casino-into-destinations-by-hyatt-las-vegas-resort

[6] Peachtree Group (Aug. 19, 2025). Peachtree Group Provides $176.5 Million CPACE Loan to Dreamscape Companies for the Rio Hotel & Casino. [Online]. Available: https://www.peachtreegroup.com/press-releases/peachtree-group-provides-176-5-million-cpace-loan-to-dreamscape-companies-for-the-rio-hotel-casino/

[7] Peachtree Group (n.d.). Peachtree Group. [Online]. Available: https://www.peachtreegroup.com/

[8] Dreamscape Companies (Feb. 2023). Dreamscape Companies Raises $850 Million in Capital. [Online]. Available: https://www.dreamscapecompanies.com/press-releases/dreamscape-companies-raises-850-million-in-capital/

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