Caesars sells off Rio but keeps World Series of Poker
Caesars Entertainment Corp has been busy lately, as they not only recently had a huge merger with Eldorado Resorts, but it was announced on Monday, September 23 that they sold off the Rio All-Suite Hotel & Casino.
Caesars sold the the Las Vegas casino for $516.3 million to the real estate firm Imperial Companies, unloading their first property since the announcement of their $17.8 billion merger with Eldorado.
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While Caesars sold the Rio, they still retain full ownership of the World Series of Poker brand and the WSOP will still be held at the Rio in 2020.
Caesars will continue to operate the Rio property for at least two more years, per the terms of the sales transaction, from a lease agreement where they will pay Imperial Companies an annual rent of $45 million.
Imperial has the option to give Caesars a third year of operation of the Rio where they can either operate the hotel and casino outright, or they can give services that will help in the transition to new management.
“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,” said Ceasars CEO Tony Rodio.
“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.”
Because of the merger with Eldorado Resorts, Caesars will likely sell off more of their property holdings in Las Vegas.
Some movement is also expected in the booming New Jersey gambling scene, as Caesars and Eldorado currently operate four Atlantic City casinos between them.
Caesars announced in August that they had scrapped plans to bid for and then develop a hotel and casino in Japan.
