Caesars Entertainment Corporation is selling the Rio All-Suite Hotel & Casino in Las Vegas to a company controlled by a principal of Imperial Companies for $516.3 million. Caesars will continue to operate the property under a lease for a minimum of two years and pay annualized rent of $45 million.

Caesars Entertainment’s Tony Rodio says, “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. 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. The buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year.