The Rio All-Suite Hotel & Casino, Las Vegas: Photo Credit: Caesars Entertainment

LAS VEGAS—Caesars Entertainment Corp. reports it has signed a deal to sell its Rio All-Suite Hotel & Casino here to a company controlled by a principal of New York City-based Imperial Companies for $516.3 million.

Caesars will continue to operate the hotel and casino pursuant to a lease 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 Rio or provide transition services to the new ownership.

"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," says Tony Rodio, CEO of Caesars Entertainment. "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."