Caesars completes sale of Rio Hotel Casino for $516 million
LAS VEGAS (KSNV) — Caesars Entertainment says it has completed the sale of the Rio All-Suite Hotel and Casino for more than $516 million.
According to a press release, Caesars sold the property to a company affiliated with Dreamscape Companies, which is owned and controlled by Eric Birnbaum.
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Under the sale agreement, Caesars will continue to operate the Rio for at least two years and pay a yearly rent of $45 million.
Caesars also provided $40 million in financing for the purchase price, according to a filing with the Securities and Exchange Commission.
Dreamscape has the option to extend the lease for a third year for $7 million. Caesars could still continue to manage Rio once the lease ends as well, or it could help with transition services.
Rio will stay under the Caesars Rewards program during the length of the lease, and the World Series of Poker will stay at the property for 2020.
Birnbaum is a co-founder of the real estate firm Imperial Companies.
