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Rio Sold to Imperial Companies; CET to operate for 2 years

Discussion in 'Casino Industry & Development' started by Chuck2009x, Sep 23, 2019.

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  1. Chuck2009x

    Chuck2009x VIP Whale

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  2. dmr

    dmr Registered Abuser

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    So? I take it no immediate changes then?
     
  3. Patman

    Patman VIP Whale

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    "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."

    Translated: We will not spend any money to improve the property.
     
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  4. FLACookieman

    FLACookieman Tourist

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  5. hammie

    hammie VIP Whale

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    Press release
    https://investor.caesars.com/news-releases/news-release-details/caesars-entertainment-announces-sale-rio-principal-imperial

    World Series of Poker will be hosted at Rio in 2020 and Caesars retains rights to the game. Rio will be part of the Caesars Rewards Program through the duration of the lease.

    Seems like a smart move, similar to selling out to a REIT. CET gets to operate the property for a lease payment of $45 million a year for two years and the buyer can extend it for a third year with a $7 million payment.
     
    Last edited: Sep 23, 2019
  6. TrewBrew

    TrewBrew I may be right, I may be Crazy.

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    Seems like a win-win. It will be easier for CZR to make money with only $45m (I assume it will reduce there property costs) and gives the buyers 2-3 years to get their plans ready or find another buyer.

    Too early to say if there is a third win for the Vegas customer.
     
  7. Guy_

    Guy_ VIP Whale

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    So? 2 years from now, what happens? Is Caesar's hoping to buy it back?
    Or is it likely that it will break completely from Caesar's at that point
     
  8. bdautch

    bdautch VIP Whale

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    Cool! Let's call it...Imperial Palace.
     
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  9. WelshBlonde

    WelshBlonde Wishing I was in Vegas

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    OR

    ImpeRio!
     
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  10. Nevyn

    Nevyn VIP Whale

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    I don't see a big lineup of companies that would be competing to lease it , and doubt the purchaser want to operate it themselves.

    So it seems to me the decision point will become between re-upping the lease and renovating, or developing something else on the land.
     
  11. nostresshere

    nostresshere Mr. Anti Debit Card

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    There will surely be changes. A long trail of small cuts such that it will be a shell of a place two years from now.

    Imagine if you sold your house, but then lived there for two years. You surely would not spend money on long term maint, or improvements.

    Big changes, at least for now? Probably not.
     
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  12. MCann

    MCann VIP Whale

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    They already dont take care of it though, and it was obvious on my stay there that they havent for some time. So I agree with the no immediate changes sentiment.
     
    Beau Rivage booked same day as Luxor. One will win. Leaning Biloxi.
    Vegas or Biloxi. Going somewhere for Labor Day weekend...
  13. salukidean

    salukidean High-Roller

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    I expect the Diamond Lounge ( sorry...Laurel Lounge) to close within the next 6 months or so. Caesars will want its bigger players to start frequenting the strip properties as soon as possible so it can maintain them once the Rio is completely out of their portfolio.
     
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  14. Elizakess

    Elizakess Low-Roller

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    I agree that there will be no improvements to the property. The value in that place is the property though not the casino. It’s huge. The casino had three cases of legionnaires disease in two years so it’s not in great shape. I think if the baseball idea is dead there then perhaps something similar will go in. I find it hard to believe a new casino would be built there. Anything can happen though.
     
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  15. Kisby

    Kisby Low-Roller

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    1. Bring back the Rio-to-strip shuttle.
    2. Bring back the seafood buffet, but make it good like it was in the old days.

    Give me a reason to go there ad I will!
     
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  16. DJP

    DJP Low-Roller

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    What do we know about the buyer, any history in Vegas?
     
  17. Nevyn

    Nevyn VIP Whale

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    Being operated by those who took it away and now owned by people who want to cash the lease checks presumably while they investigate potential other developments (like a baseball park perhaps?)

    So no, I don't think you are getting your favourite things back
     
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  18. Nevyn

    Nevyn VIP Whale

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    http://www.imperialcos.com/

    Pure real estate investment co. Very unlikely to try to operate themselves, so as long as it stays a casino/hotel it would be leasing out to an operator.

    The open question is whether they have other plans for the land/area, and if so on what timeline. Or if they are holding it because they anticipate others having plans for it.
     
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  19. dmr

    dmr Registered Abuser

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    I think that both Drew and Resorts World will happen before that does!
     
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  20. Init2winit

    Init2winit Low-Roller

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    End of an era
     
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