Operatornieuws
US – Caesars sells Las Vegas casino for $516.3m
By Phil - 23 september 2019
Caesars Entertainment is selling the Rio All-Suite Hotel & Casino to a company controlled by a principal of Imperial Companies for $516.3m, which implies a strong sales price to EBITDA multiple.
Under the terms of the agreement, Caesars will continue to operate the property pursuant to a lease for a minimum of two years and pay annualized rent of $45m. The Buyer has the option to pay Caesars $7 million 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 Rio or may provide transition services to the Buyer.
“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.”
De overeenkomst maakt mede-eigendom van Rio-specifieke gastgegevens mogelijk en legt geen beperkingen op aan de marketingactiviteiten van Caesars. De Rio zal tijdens de leaseperiode deel blijven uitmaken van het Caesars Rewards-netwerk en de transactie zal naar verwachting niet leiden tot veranderingen in de gastervaring. De World Series of Poker wordt in 2020 in Rio gehost en de hostingrechten blijven daarna bij Caesars Entertainment.
