Caesars Entertainment Corporation has signed an agreement to sell its Las Vegas Rio All-Suite Hotel & Casino property to “a company” controlled by a principal of Imperial Companies for $516.3m.  

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 $7m 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 the firm’s CEO Tony Rodio. “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.”

The transaction is expected to close in the fourth quarter of 2019, subject to regulatory approvals and other customary closing conditions.