Caesars Entertainment has completed a $516.3 million deal to transfer ownership of the Rio All-Suite Hotel and Casino in Las Vegas to a buyer affiliated with Dreamscape Companies.
As per the agreed terms, Caesars will continue to operate the 2,400-suite property for at least another two years. Caesars will pay annualized rent of $45 million for the property, which is located just off the famous Las Vegas Strip. Caesars also has option to continue operating the facility for a further year, but a fee of $7 million will be required to extend the lease.
Caesars will continue to operate the 2,400-suite property for at least another two years
Dreamscape owner Eric Birnbaum had his say on this new purchase, stating: “The way our deal is structured with them is they will manage this asset and they will pay us rent for the next two years, so we have nothing to do other than put together our plan and renovation strategy over the next two years.”
Will there be any significant changes?
A budget has yet to be disclosed for renovation work that will be taking place at the Rio under its new owners. However, Birnbaum did confirm that a lot of gaming industry veterans would be involved in these renovations.
Birnbaum also suggested that the conference area will be enhanced. With the Rio sitting on 90 acres of land, there is still 22 acres that is not in use.
Dreamscape has made no commitment to rehiring the current Rio staff
While there were rumours that a Major League Baseball (MLB) stadium would be built on this tract of land, Birnbaum has pretty much ruled out this happening.
Dreamscape has made no commitment to rehiring the current Rio staff. The company is looking for the best people to be in charge of the day-to-day operations of the Rio, with everyone having to be suitably qualified.
WSOP staying at the Rio
One of the major draws for the Rio is the annual hosting of the World Series of Poker (WSOP). This tournament series will be remaining at the facility for at least one more year, with Caesars continuing to hold the rights for this event.