Caesars Entertainment Corporation CZR has signed an agreement to sell the Rio All-Suite Hotel & Casino to a company controlled by a principal of Imperial Companies for $516.3 million. The transaction is expected to close in the fourth quarter.
Caesars says it will continue to operate the property for a minimum of two years and pay annualized rent of $45 million. The buyer will have the option to pay Caesars $7 million to extend the lease under similar terms for a third year.
"This 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," said Tony Rodio, CEO of Caesars Entertainment. "The retention of the World Series of Poker and retention of Caesars Rewards customers are all factors that make this a valuable transaction for Caesars."
Caesars Entertainment shares were trading up 1.2% at $12.50 in Monday’s pre-market session.The stock has a 52-week range between $12.23 and $5.84.
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