Caesars and VICI have announced the sale of Harrah’s Reno to CAI Investments, a deal that will see the facility close its doors.
US.- Caesars Entertainment Corporation and VICI Properties Inc. announced this week that they have signed an agreement to sell Harrah’s Reno Hotel and Casino to an affiliate of CAI Investments for US$50 million.
VICI will perceive 75% of the proceeds of the transaction, while Caesars will have 25% of them. The annual rent payments will remain unchanged, the companies announced in a statement.
The agreement establishes that Caesars will continue to operate the property upon closing of the transaction after a short-term lease with the buyer, which will allow Caesars to cease operations during the second half of 2020. At the end of this term, Caesars will deliver the property to the buyer, who will then redevelop it into a non-gaming hotel.
“We recognise the long legacy of Harrah’s in Reno, where the brand began 82 years ago and our role in the community. We are pleased the buyer is committed to the community and supports the redevelopment of this wonderful asset.”
“Also, we have worked closely with the buyer to provide a reasonable closure plan that allows our great staff in Reno ample time to secure their next jobs, including priority consideration for relevant openings at our other properties in Nevada, including Lake Tahoe and Las Vegas,” said Tony Rodio, CEO of Caesars Entertainment.
This transaction is also subject to the closing of the Eldorado-Caesars deal. The US$17.3 billion merger deal with Caesars, which includes debt, will reach completion sometime in the first half of 2020. The company could reduce some of the debt by separating the sports business. The merger between Eldorado Resorts and Caesars Entertainment will create the US largest casino owner.