Caesars Entertainment Corporation completed the $516.3-million sale of the Rio All-Suite Hotel & Casino to Dreamscape Companies.
LAS VEGAS, Dec. 5, 2019 -- Caesars Entertainment Corporation (NASDAQ: CZR) ("Caesars" or "Caesars Entertainment"), one of the world's most diversified casino-entertainment providers, today announced it has completed the previously announced sale of the Rio All-Suite Hotel & Casino (the "Rio") to a company (the "Buyer") affiliated with Dreamscape Companies ("Dreamscape"), which is owned and controlled by Eric Birnbaum, for $516.3 million (including certain fees, expenses and $40 million in seller financing provided by a Caesars affiliate). Dreamscape acquires, repositions and/or develops hospitality, residential, retail, gaming and entertainment assets.
In connection with the completion of the sale, a Caesars subsidiary entered into a lease with the Buyer under which Caesars will continue to operate the property for a minimum of two years and pay annualized rent of $45 million. The Buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year. At the end of the lease term and at the request of the Buyer, Caesars may continue to manage the Rio or may provide transition services to the Buyer.
The Rio will continue to be part of the Caesars Rewards network during the lease term, and the transaction is not expected to result in any changes to the guest experience. The World Series of Poker will be hosted at the Rio in 2020 and hosting rights will remain with Caesars Entertainment thereafter. Further details on the transaction are available in the Form 8-K to be filed with the Securities and Exchange Commission.
About Caesars Entertainment
Caesars Entertainment is one of the world's most diversified casino-entertainment providers and the most geographically diverse U.S. casino-entertainment company. Since its beginning in Reno, Nevada, in 1937, Caesars Entertainment has grown through development of new resorts, expansions and acquisitions. Caesars Entertainment's resorts operate primarily under the Caesars®, Harrah's® and Horseshoe® brand names. Caesars Entertainment's portfolio also includes the Caesars Entertainment UK family of casinos. Caesars Entertainment is focused on building loyalty and value with its guests through a unique combination of great service, excellent products, unsurpassed distribution, operational excellence and technology leadership. Caesars Entertainment is committed to its employees, suppliers, communities and the environment through its PEOPLE PLANET PLAY framework. For more information, please visit www.caesars.com/corporate.
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