Caesars Entertainment Corp. agreed to sell Harrah's Las Vegas to Vici Properties for $1.14 billion and will lease back the 2,550-room hotel under a 15-year agreement.

Vici Properties is the real estate investment trust that was spun off from Caesars Entertainment when it exited bankruptcy in October. Vici's shareholders are creditors from the bankruptcy.

As part of the deal, Caesars will acquire 18.4 acres adjacent to Harrah's, where Caesars Entertainment will build a 300,000-square-foot convention center. Caesars will have the right to require Vici to purchase the convention center and lease it back to Caesars.

Caesars says the convention center will feature the largest column-free ballroom in the U.S.

Caesars will use sale proceeds toward its $1.7 billion acquisition of the Hoosier Park and Indiana Grand racinos.

Caesars has a 15-year leaseback agreement with Vici, in which Caesars will pay rent starting at $87.4 million per year. Caesars has the option to extend the lease for an additional 20 years via four five-year extensions.

Harrah's Las Vegas opened on the Las Vegas Strip in 1973 as the Holiday Casino. It was renamed Harrah's in 1992.

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