LAS VEGAS, Dec. 5, 2019 /PRNewswire/ -- Caesars
Entertainment Corporation (NASDAQ: CZR) ("Caesars" or "Caesars
Entertainment"), one of the world's most diversified
casino-entertainment providers, today announced it has completed
the previously announced sale of the Rio All-Suite Hotel &
Casino (the "Rio") to a company (the "Buyer") affiliated with
Dreamscape Companies ("Dreamscape"), which is owned and controlled
by Eric Birnbaum, for $516.3 million (including certain fees, expenses
and $40 million in seller financing
provided by a Caesars affiliate). Dreamscape acquires,
repositions and/or develops hospitality, residential, retail,
gaming and entertainment assets.
In connection with the completion of the sale, a Caesars
subsidiary entered into a lease with the Buyer under which Caesars
will continue to operate the property for a minimum of two years
and pay annualized rent of $45
million. 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 the Rio or
may provide transition services to the Buyer.
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 to the guest experience. The World Series of
Poker will be hosted at the Rio in 2020 and hosting rights will
remain with Caesars Entertainment thereafter. Further details on
the transaction are available in the Form 8-K to be filed with the
Securities and Exchange Commission.
About Caesars Entertainment
Caesars Entertainment is one of the world's most diversified
casino-entertainment providers and the most geographically diverse
U.S. casino-entertainment company. Since its beginning in
Reno, Nevada, in 1937, Caesars
Entertainment has grown through development of new resorts,
expansions and acquisitions. Caesars Entertainment's resorts
operate primarily under the Caesars®,
Harrah's® and Horseshoe® brand
names. Caesars Entertainment's portfolio also includes the Caesars
Entertainment UK family of casinos. Caesars Entertainment is
focused on building loyalty and value with its guests through a
unique combination of great service, excellent products,
unsurpassed distribution, operational excellence and technology
leadership. Caesars Entertainment is committed to its employees,
suppliers, communities and the environment through its PEOPLE
PLANET PLAY framework. For more information, please visit
www.caesars.com/corporate.
Forward-Looking Statements
This press release includes "forward-looking
statements" intended to qualify for the safe harbor from
liability established by the Private Securities Litigation Reform
Act of 1995. You can identify these statements by the fact that
they do not relate strictly to historical or current facts and by
the use of words such as
"expect," "intend," "may," "continue," and
"will," or the negative or other variations thereof or
comparable terminology. These forward-looking statements are based
on current expectations and projections about future events.
You are cautioned that forward-looking statements are not
guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified and,
consequently, the actual performance and results of Caesars may
differ materially from those expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
but are not limited to: potential adverse reactions or changes to
business, customer, management or employee relationships, including
those resulting from the announcement or completion of the
contemplated transactions; the possibility that the anticipated
operating results and other benefits of the contemplated
transactions are not realized when expected or at all; shutdown
costs or transition costs at the end of the lease term; local risks
including proximate competition, potential competition, customer
retention, legislative risks, and local relationships; and other
factors described from time to time in our reports filed with the
Securities and Exchange Commission.
You are cautioned to not place undue reliance on these
forward-looking statements, which speak only as of the date of this
filing. Caesars undertakes no obligation to publicly update or
release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this filing or to
reflect the occurrence of unanticipated events, except as required
by law.
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SOURCE Caesars Entertainment Corporation