Caesars Entertainment Allegedly Loses on Rio Sale
Recent reports have alleged that US casino giant, Caesars Entertainment Corp has sold the Rio All-Suite Hotel and Casino – one of their Las Vegas Strip venues – to real-estate firm Imperial Companies for a total of $516.3 million. The figure is much lower than the casino’s 2017 Moelis & Company valuation, which had put the venue’s overall price between $636 million and $836 million.
Caesars Entertainment have been looking to dispatch the casino for some time, with rumors even circulating that the venue was set to be demolished and turned into a baseball park that could be used the city’s attempts at luring a franchise from a neighboring state to the area. This idea was further confirmed when the casino was notably left out of the Caesar Entertainment’s renovation plans for their sites.
Although the sale is set to go through by the end of the year, it still needs to be approved by regulators. As part of the deal, Caesars will be operating the casino for the next two years as it smoothly transfers over to its new owner, but will be required to pay a rental fee of $45 million. There is an option for a lease extension that will see Imperial Companies pay Caesars Entertainment $7 million to keep the place running well.
Caesars Entertainment on The Market
Caesars Entertainment themselves are currently on the market, after years of financial struggles. The casino giant is expected to be purchased by former competitor, Eldorado Resorts Inc for $17.3 billion. Should the purchase be approved, Eldorado Resorts will become the biggest casino group in the United States.
It is unclear whether or not Eldorado Resorts will place anymore Caesars properties on the market after the purchase is confirmed. Eldorado CEO Thomas Reeg did state in June that they could get rid of two of the company’s Las Vegas properties.
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