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Business

Where the glitterati celebrate the Olympics

Opening sequence

Opening sequence

Business

Where the glitterati celebrate the Olympics

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COMING UP:Where the glitterati celebrate the Olympics

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Transcript

00:00:02
>> Some call it the 29th sport in the Olympic games, hospitality house hopping. This isn't for the average visitor, thank you very much. You need a connection to get into the parties at lavish places like the Omega House to zip a caipirinha while swinging next to this waterfall.
00:00:19
Olympic medalists, their friends and family, and pop stars get the red carpet. Phelps, of course, was there. These hospitality houses started in 1992 at the Barcelona Games, but have become much more over the top since, says Reuters Leanna Baker.>> I spoke with a lot of corporate sponsors at the Olympics who were putting on these lavish parties at these corporate houses they've set up.
00:00:43
And some executives like the US President of ASICS, the sneaker company, told me that there's too many houses. It's a lot of clutter and that companies are wasting money trying to market at the Olympics when maybe they can be using the money for something else like boosting participation in sports.
00:01:01
>> While such extravagance has drawn criticism in a country suffering from its worst recession in 80 years and a city where one in five live in slums, there is some benefit to Rio. CISCO, the networking company, renovated a restaurant right in the shadow of Sugarloaf Mountain, Omega renovated a cultural center that's behind me.
00:01:24
So they're putting a lot of money into these houses but then when they leave, there is a legacy for the local community to have this event space.>> Still, it's been a challenge to pull this off in Rio, a city notoriously dangerous. Getting around is hard so house hopping at night, like at previous games isn't always possible or safe.
00:01:43
And while officials are still investigating US swimming gold medalist Ryan Lochte's claims of being robbed at gunpoint after a party at the France house, similar incidents have been reported throughout the city.