LAS VEGAS (KLAS) — Caesars Entertainment completed the sale of the Rio All-Suites Hotel & Casino for $516.3 million. The hotel-casino was sold to a company affiliated with Dreamscape Companies, owned and controlled by Eric Birnbaum.
Dreamscape acquires, repositions and/or develops hospitality, residential, retail, gaming and entertainment assets.
A Caesars subsidiary also took part in the deal, entering a lease with the buyer that will allow Caesars to continue to operate the property for a minimum of two years. The annualized rent is $45 million. The Rio’s buyer may extend this lease for a third year, paying Caesars $7 million to do so. After the lease term is up, the buyer may allow Caesars to continue its management of the property or transition services to the buyer.
Caesars Rewards members may continue the reap the benefits of the program, as Rio will continue to be a part of the network throughout the lease term.
The Rio will host the World Series of Poker in 2020, with Caesars Entertainment maintaining its hosting rights.
A press release said the guest experience is not expected to change as a result of this transaction.