Caesars Entertainment Corporation selling Rio All-Suite Hotel and Casino
In the run-up to the proposed merger with Eldorado Resorts Incorporated and US casino operator Caesars Entertainment Corporation, a deal is underway to provide $ 516.3 million for the outsourcing of the Rio All-Suite Hotel and Casino property in southern Nevada.
According to a Monday report by the Las Vegas Review-Journal newspaper, the casino firm has arranged to sell to New York-based real estate firm Imperial Companies and now has to pay an annual fee of $ 45 million to lease back the 2,500. Venue for the next two years.
The newspaper said that the agreement also includes a provision that allows Caesars Entertainment Corporation, based in Las Vegas, to extend this repossession agreement for a third year and, at the request of Imperial Companies, offer a range of operating and transitional services in exchange for a fee of $ 7 million.
Caesars is currently merging with regional partner Eldorado Resorts Incorporated as part of a $ 17.3 billion alliance to create the largest US casino company with a portfolio of over 70 properties. Although the combined entity intends to maintain the name of Caesar, competition concerns have reportedly compelled the company to consider selling some of its nine venues in Las Vegas, including Bally’s Las Vegas, Caesar’s Palace Las Vegas and Harrah’s Las Vegas.
Tony Rodio, Chief Executive Officer of Caesars Entertainment Corporation, told the Las Vegas Review Journal that the sale of the Rio All-Suite hotel and casino, which is expected to be completed by the end of March, will allow his company to focus on our business Resources for strengthening our attractive portfolio of recently refurbished Strip properties will be available and likely to result in incremental cash flow on these properties.
Rodio reportedly told the newspaper …
“Retaining the World Series of Poker (WSOP) and retaining Caesars Rewards customers are all factors that make this transaction a valuable transaction for Caesars Entertainment Corporation.”