Global hotel brand, Marriott International, has acquired the management rights of the Gaylord brand and hotel management company for US$210m. The transaction will add four hotels and approximately 7,800 rooms to Marriott’s portfolio.
hotel chain has entered into the agreement with Gaylord Entertainment
Company and the transaction is conditioned on Gaylord Entertainment’s
shareholders approving the company’s conversion into a real estate
investment trust. The deal is expected to be complete by October.
the deal, Gaylord will continue to own the existing Gaylord hotels and
Marriott will assume management of these properties under long-term
agreements. Gaylord Hotels include Gaylord Opryland in Nashville,
Tennessee; Gaylord Palms in Kissimmee, Florida; Gaylord Texan on Lake
Grapevine near Dallas, Texas, and Gaylord National, on the Potomac in
National Harbor, Maryland.
Gaylord Hotels are positioned in the group and family leisure segments with approximately 186,000sqm of meeting and event space.
have long been impressed with the hotels Gaylord has created, as well
as their skill in hosting major meetings and events,” Marriott
International President and CEO, Arne Sorenson, said. “Gaylord
properties will benefit from Marriott’s economies of scale, including
lower costs for central reservations, procurement and other services,
plus strong sales, revenue management, marketing and distribution
systems, while Marriott will be able to capture even a greater share of
the major event market.”
He says Gaylord’s ‘everything-in-one-place’ properties are “attractive to group meeting planners”.
to a recent survey conducted on behalf of Gaylord in February, of over
400 high-quality meeting planners, Gaylord ranked first in all under
one-roof offerings and amenities and Marriott ranked as the number one
preferred group destination provider overall due to its service
standards and wide distribution,” said Colin V. Reed, Chairman and Chief
Executive Officer, Gaylord Entertainment Company.
completion of the transaction, Marriott will operate the hotels under
management agreements with an initial term of 35 years. Marriott
International expects to earn an incentive fee in its first full year of
management, based on improvement in Gaylord Hotels’ profitability, and
further expects the transaction to be accretive to Marriott’s earnings
per share by approximately two cents in 2013.
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