Entertainment giant Caesars Entertainment Corporation is set to sell one of its Las Vegas properties to a New York real estate investment company for a $500 million price.
The Rio All-Suite Hotel & Casino was built in 1990 and has the distinction of being the first All-Suite resort in the Las Vegas area. It was extended by the addition of 20 storeys of tower space in 1993 and the $200 million Masquerade Village in 1997, and now boasts 2,500 hotel suites, along with several villas, 10,900 square metres of gaming space and a 50,000-bottle wine cellar.
Caesars have announced that the sale, to an affiliate of Imperial Companies, will be worth $516.3 million, but under the terms of the deal, they will continue to operate the Rio on a minimum two-year lease, for an annual $45 million rent. The new owners will also have the option of extending that lease by another year at the end of the current deal.
According to Tony Rodio, the CEO of Caesars, the sale will enable the company to focus on its portfolio of newly renovated properties along the Las Vegas strip.
The Rio has become known as the venue for several high profile performers over the years, including magicians Penn and Teller, who have headlined there since 2001, and it has a long association with the World Series of Poker, dating back to 2005.
But in his statement announcing the deal, Rodio confirmed that the World Series of Poker will once again be held at the Rio in 2020, and that Caesars will retain hosting rights.