Caesars Entertainment has completed the sale of the Rio All-Suite Hotel and Casino in Las Vegas to a company affiliated with Dreamscape Companies for $516.3m.
Dreamscape, which is owned and controlled by Eric Birnbaum, acquires, repositions and 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 annualised rent of $45m.
The buyer has the option to pay Caesars $7m 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.
