Caesars Entertainment has announced the sale of the Las Vegas strip casino Rio for US$516.3 million.
US.- Caesars Entertainment announced on Monday that it reached an agreement to sell the Rio All-Suite Hotel & Casino to New York-based Imperial Companies. The company agreed the sale of the Las Vegas strip facility for US$516.3 million.
The agreement establishes that Caesars will continue operating the property with a lease for a minimum of two years and pay annualised rent of US$45 million. If they wish to extend that lease for a third year, Imperial Companies can pay Caesars US$7 million. Then, Caesars can opt to manage Rio or to provide transition services.
The companies informed that the agreement doesn’t restrict Caesars’ marketing activities and that it allows for co-ownership. Rio will continue to be part of the Caesars Reward network during the lease term. The World Series of Poker (WSOP) will also take place at the facility. Caesars Entertainment will retain the hosting rights after the lease is over.
Tony Rodio, CEO of Caesars Entertainment, said: “This deal allows Caesars Entertainment to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties and is expected to result in incremental EBITDA at those properties. The retention of the WSOP and Caesars Rewards customers are all factors that make this a valuable transaction for Caesars.”