Caesars Entertainment Corporation (“Caesars Entertainment”), has signed an agreement to sell the Rio All-Suite Hotel & Casino (The Rio) in Las Vegas to an affiliate of Imperial Companies for $516.3 million.
The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary closing conditions.
Under the terms of the agreement, Caesars Entertainment will continue to operate the Rio All-Suite Hotel & Casino pursuant to a lease for a minimum of two years and pay annualized rent of $45 million.
The buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year. At the end of the lease term and at the request of the buyer, Caesars may continue to manage Rio or may provide transition services to the buyer.
“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 World Series of Poker and retention of Caesars Rewards customers are all factors that make this a valuable transaction for Caesars,” said Tony Rodio, CEO of Caesars Entertainment.