Rio All-Suite Hotel & Casino in Las Vegas has been sold by Caesars Entertainment for $515,3m. Although there is not much more information about the deal, it is known that Rio is sold to “a company controlled by a principal of Imperial Companies,” based in New York. The only thing remaining to be processed now is the regulatory approval.
As agreed, Caesars will still manage operations at Rio’s for the next two years. The annual rate during this time will be $45m. There is an option for lease period extension to the third year with a payment of $7m to Caesars’ operator.
The casino giant is currently acquiring Eldorado Resorts and has few other ventures in mind too.
Eldorado CEO, Tom Reeg talked about this deal:
“I was looking to unload at least one Caesars property on the Las Vegas Strip and regulatory demands in other markets – including Atlantic City, where the combined entities would control four of the nine casinos – will likely require similar sell-offs.“
Caesar announced that WSOP 2020 will be held in the Rio Venue. The company will try to keep the right for the WSOP event until the deal is through.
CEO at Caesars, Tony Rodio, stated:
“This deal will allow Ceasers 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 both the WSOP and the loyalty program’s customers make this a valuable transaction for Caesars.”