Rumors about the sale of Rio All-Suite Hotel & Casino have been swirling for so long that it started to look as if this would never happen.
Earlier this month popular blog about Las Vegas-related rumors, gossip, and other hearsay Vital Vegas churned out the latest report that Caesars Entertainment Corp. was selling the off-Strip property.
That latest rumor was confirmed this past Monday when the casino operator announced that it has agreed to sell the hotel and casino resort to a company controlled by New York real estate group Imperial Companies for $516.3 million. The transaction is expected to close by the end of the year.
Under the terms of the deal, Caesars will continue to operate the Rio pursuant to a lease for a minimum of two years. The casino operator will pay annualized rent of $45 million. Imperial Companies has the option to extend the lease for a third year.
At the end of the lease term, Caesars may be allowed to continue to operate the casino resort or to provide transition services to the buyer, a statement issued by the gaming and hospitality giant reads.
What Will Happen to the WSOP?
The Rio has been hosting the annual World Series of Poker, a tournament poker brand owned by Caesars, for more than a decade. Last week, when the property’s impending sale was just a rumor, WSOP Vice President of Corporate Communications Seth Palansky said in a tweet that he “can 100% confirm [the WSOP] will take place at the Rio
The WSOP official elaborated further on the future of the series in an interview with CardPlayer. He said that contracts were in place for the WSOP to take place at the Rio in 2020 and 2021 and that if the property switched ownership at some point, the new owner could decide whether they would honor those contracts or not and “decide to be embroiled in litigation or not.”
Mr. Palansky further pointed out that they love the Rio, its location off the Las Vegas Strip, and the fact that it is away from congestion and has an easy in and out access and easy parking.
Where will the WSOP take place after 2021? That is still a question that needs to be addressed by Caesars. Rumor has had it that the series will be relocated to the company’s Caesars Forum, a $375 million convention center currently under development behind The LINQ and Bally’s and slated to open doors in 2020.
Rio’s Sale and Caesars’ Consolidation
The sale of the Rio comes amid preparations for Caesars to be acquired by Reno-based gaming and hospitality company Eldorado Resorts. The record $17.3 million deal is set to create the largest US casino operator and is expected to be closed sometime next year, pending regulatory approvals and other closing conditions.
It is not a surprise that Caesars is looking to offload some of its properties, including ones located in Las Vegas, ahead of its takeover by Eldorado. And according to industry experts, the sale of the Rio should not come as a surprise, as well. CDC Gaming Reports gaming executive editor Howard Stutz said Monday that the two Caesars properties that make the most sense to be sold are “Planet Hollywood and Rio because they’re not really connected to anything else.”
News about the Rio’s sale come amid reports that Caesars’ rival, MGM Resorts International, is looking to sell two of its flagship Vegas properties – MGM Grand and the Bellagio.
Of the sale of the hotel and casino resort, Caesars’ CEO, Tony Rodio, said Monday that “the deal allows Caesars Entertainment to focus our resources on strengthening our attractive portfolio of recently renovated Strip properties and is expected to result in incremental EBITDA at those properties.”
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