The Caesars Entertainment group begins its restructuring project by deciding to sell its Rio All-Suite Hotel and Casino establishment. It is one of the busiest casinos in the city of Las Vegas. Each year, the place hosts many events including the World Series of Poker.
A rental option included in the sale
Following the buyout of Caesars Entertainment by Eldorado Resorts in June 2019 for an amount of 17.3 billion, the casino operator is starting new projects, starting with the sale of the Rio casino. The sale of its hotel-casino was communicated at the beginning of the week for a total amount of 516.3 million dollars. The buyer’s name is already known, a business run by a real estate firm Imperial Companies headquartered in New York. This transaction takes place as part of the restructuring and financial upgrade of Caesars. Note that the company’s debt has passed the $ 20 million mark in a few years. According to an agreement between Caesars (Eldorado) and Imperial Companies, Caesars still has the option of operating the casino for a period of two years. In return, he will have to pay $ 45 million in rent per year. A decision that was taken by the two main parties concerned in order to continue activities.
In the coming months and years to come, Eldorado Resorts plans to make several sales. According to the information gathered, this approach would affect at least one casino in Las Vegas and one casino in Atlantic City. Regarding the organization of poker tournaments, the program will be maintained in Rio in 2020. After that, things are still uncertain about the course of the festival. In all cases, the casino Le Rio All-Suite Hotel and Casino retains its services. Launched in 1997, the establishment has an 11.148 m² gaming room with thousands of slot machines, table games and a special space, the Amazon Room, where the WSOP Main Event was held. $ 10,000 buy-in tournament.
Caesars has stated its intention to continue to manage the property for two years through a lease contract worth $ 45 million per year. A way to preserve its status as owner of the WSOP brand, one of the most prestigious tournaments in the industry. An option for a third year is included in the agreement for the sum of $ 52 million.