Caesars Entertainment completes $516 million sale of Rio

Related Story Caesars announces sale of Rio for $516 million

Caesars Entertainment announced today that it has completed the $516.3 million sale of the Rio, which was announced earlier this year.

The buyer is an affiliate of Dreamscape Companies, which is owned and controlled by New York real estate developer Eric Birnbaum. Dreamscape acquires, repositions and develops hospitality, residential, retail, gaming and entertainment assets.

In connection with the sale, a Caesars subsidiary entered into a lease under which Caesars will continue to operate the off-Strip resort for at least two years, paying $45 million a year in rent, the casino company said.

The buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year, officials said.

At the end of the lease term and at the request of the buyer, Caesars may continue to manage the Rio or provide transition services to the buyer, officials said.

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 for guests, officials said.

The World Series of Poker will be hosted at the Rio next year, and hosting rights will remain with Caesars Entertainment thereafter, officials said.

Back to top