Caesar’s has made a bunch of changes during the course of 2019. The year started with the replacement of the Total Rewards program with the new Caesars Rewards program. Then, the biggest change was the merger with Eldorado Resorts. Yesterday, an internal memo released at Caesars Entertainment confirms the sale of their off strip property — the Rio All Suite Hotel and Casino.
The Terms of Caesar’s Sale
The $516.3 million dollar deal means Imperial Companies, a New York based real estate investment, development, and management company, will be the new owners. However, even though the transaction is supposed to close by Quarter 1 of 2020, Caesars Entertainment will be leasing back the property for two years. Each of those two years will cost Caesars $45 million, while an optional third year would cost $52 million.
Why Sell Off The Caesars Rio Casino Property?
Tony Rodio, Caesar’s CEO, said in a statement released Monday:
“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.”
In the memo, included below, Mr. Rodio highlights that the sale of this property has been in progress for a long time and has nothing to do with the merger with Eldorado.
The Upshot
The biggest takeaway for the poker playing community (myself included) is that the biggest event of the year, The World Series of Poker (WSOP), will remain unchanged for 2020. Moving forward, speculation remains that the WSOP could potentially move to Caesars flagship property, Caesars Palace. This would make sense as it gives Caesars the option to utilize the Caesars Convention Center which is scheduled to be completed in April of 2020.
For now, this memo confirms that all team members for the next two year will remain Caesars employees. Therefore, it is reasonable to assume that all Caesars Rewards benefits will apply to the Rio All Suite Hotel and Casino for the next two years.
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1 comment
During the last WSOP at the Rio there was a lot of talk of the move aspect.