Caesars sells Rio casino-hotel to real estate company for $516 million

LAS VEGAS (KSNV) — Caesars Entertainment has sold the Rio All-Suite Hotel and Casino to a real estate investment company for $516.3 million, the company has announced.

A company controlled by a principal of the firm Imperial Companies will buy the casino-hotel property off the Las Vegas Strip, while Caesars will continue to operate it for at least two years and pay $45 million in annual rent.

The deal includes a $7 million option for a third year of Caesars management. The company could continue to manage the property after the lease expires as well.

RELATED | Caesars Entertainment announces merger with Eldorado Resorts

"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," Tony Rodio, Caesars CEO, said in a statement released Monday.

Rio would still be part of the Caesars rewards program under the deal, according to the announcement, and the World Series of Poker will stay at the hotel for 2020. However, Caesars will retain ownership of the World Series of Poker under the agreement.

Imperial Companies is a real estate investment firm based in New York.

Caesars announced earlier this year it would merge with Reno-based Eldorado Resorts in a deal valued at more than $17 billion.