Caesars Entertainment has recently announced to reopen its final resort Rio All-Suite Hotel & Casino in Las Vegas before the end of the year.
Of the 60 casinos owned and operated by Caesars, only one has remained closed since the coronavirus led to country-wide shutdowns in March. Unlike all other Caesar’s properties, The Rio All-Suite Hotel & Casino was not able to resume its gambling services. However, the company plans to reopen its last property before the turn of 2020.
The Las Vegas-based company reported a net loss of $926 million for the third quarter that was defined by the pandemic. However, Caesars is optimistic about its future in Las Vegas, its headquarters, as it has booked record convention business during the second half of 2021.
The Rio closed in March as a part of state-led measures that halted all nonessential businesses to control the spread of the virus. Nevada allowed casinos to reopen on June 4 at reduced capacity (50%) with social distancing and all preventative measures in place.
Caesars first opened its most crucial properties, like Caesars Palace Las Vegas, Harrah’s Las Vegas, Flamingo Las Vegas, Bally’s Las Vegas, Planet Hollywood Resort & Casino, and The LINQ Hotel & Experience. At the end of October, Caesars also reopened its last resort, The Cromwell, on the Strip. During its quarterly earnings call on Thursday, Caesars Entertainment CEO Tom Reeg said that The Rio should make a comeback before 2021.
Caesars Has Already Sold Rio Property
In September, Caesars announced it had signed an agreement to sell its off-strip casino property to an affiliate of Imperial Companies for $516 million. Under the terms of the agreement, the company will continue to operate Rio All-Suite Hotel & Casino on a lease for two years.
Caesars will pay an annual rent of $45 million to the buyer who can extend the lease for a third year by paying Caesars $7 million. At the end of the lease term, Caesars may continue to manage Rio or offer transition services to the buyer, reportedly a New York real estate developer.
However, the agreement allows for co-ownership of Rio-specific guest data while placing no restrictions on Caesar’s marketing activities. The Rio property will continue to be a part of the Caesars Rewards network during the lease term. More importantly, the transaction will not result in any changes to guest experience.
No Midweek Closures
Caesars CEO Tom Reeg also announced that unlike other casino operators, it won’t close part of its operations in the middle of the week. Both Wynn Resorts and MGM Resorts International announced recently that they would close a few days each because of the reduced number of visitors. However, Caesars does not seem to witness the same decline.
“Business continues to get stronger in Las Vegas,” said Reeg. “We’re not going to be talking about shutting down properties midweek. We’re opening properties.”
The CEO said that he expects business here to be “beyond your wildest dreams” once COVID-19 is more under control. Reeg also reported that the company has 172 events booked for next year and beyond with $600 million in banquet and room revenues. He said 78% of that business is new to Vegas.