Caesars Entertainment will soon sell the Las Vegas Rio for $516 million to a principal in New York called Imperial Companies, which is a real estate investment firm. That selling price for the Rio Casino and Hotel is quite lower than the initial valuation from 2017, which was between $636 and $836 million. That valuation for Caesars was conducted by Moelis & Co. The sale of the Rio Hotel and Casino was a matter of time because it wasn’t a part of the upgrades that Caesars made.
Big chances are that the transaction is going to happen in the fourth quarter of 2019, according to the word of investors from the Deutsche Bank. For the deal to happen, it has to be approved by regulators. This Friday, Imperial has put a substantial amount of money- $5 million in an escrow amount as the first payment for the Las Vegas Rio. The terms are these; the Caesers is going to operate the venue for a minimum of 2 years, and it will also pay $45 million in rent per year. Imperial has an option to pay Caesars Entertainment Corp $7 million in order to make an extension of the lease for one extra year. After, Caesars has an option to either provide types of services or manage the property to Imperial as the venue makes the new-owner transition.
Since the year 2005, the World Series of Poker has taken place at the well-known Rio. That event will have a new location in the Caesars Forum conference center. The worth of that conference center is $375 million, and it has 550 square feet. It will open in the year 2020.
Major news is that the Caesars will likely be bought by Eldorado Resorts Inc, based in Reno, for a whopping $17.3 billion. CEO of Eldorado, Thomas Reeg made a statement that one or even two out of nine Caesars properties are going to be sold, and foreshadowed the sale of Rio. The Ceo of Caesars, Tony Rodio said that with that deal, Caesars will focus its resources towards the newly renovated Strip properties and make some big money out of them. Rodio also said that it’s a great thing that they’ve held the right to be the hosts of the Caesars Rewards Customers and the World Series Of Poker.
Their official homepage: https://www.caesars.com/corporate