Caesars completes sale of Rio Hotel-Casino
Caesars Entertainment has completed the sale of the Rio All-Suites Hotel & Casino to an Eric Birnbaum owned company for US$516.3 million.
US.- Eric Birnbaum has finally acquired the Rio All-Suites Hotel & Casino from Caesars entertainment. The businessman, through a company he owns and controls, paid US$516.3 million for the property.
Birnbaum’s company is affiliated with Dreamscape Companies, which acquires, repositions and/or develops hospitality, residential, retail, gaming and entertainment assets. However, a Caesars’ subsidiary will continue to operate the Rio All-Suites Hotel & Casino for, at least, two years. It will do so through a lease that may be extended with a further US$7 million payment.
Caesars’ 3Q performance
Caesars Entertainment released the report detailing finances in the third quarter of the year. During the three-month period, Caesars’ net revenues rose 2.3% to US$2.24 billion and a strong performance in Las Vegas.
Net revenues increased US$51 million driven by growth in all business verticals, with significant growth in Las Vegas due to healthy consumer demand. Las Vegas gaming revenues grew 17.3% year-over-year due to favourable hold and higher gaming volumes. Las Vegas occupancy was 95.6% in the quarter, up from 92.6% in 2018.
Caesars said that all other net revenues decreased US$6 million year-over-year, primarily due to lower gaming volumes in the UK.
Adjusted EBITDA rose US$35 million thanks to higher revenues generated across all business verticals offset by increased competition in Atlantic City and Southern Indiana. “All Other adjusted EBITDA loss increased by US$7 million year over year primarily due to lower revenues in our international properties, partially offset by reduced corporate expenses,” explained Caesars.
