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.
The 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.
Under 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.
“We 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”.
“According 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.
Upon 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.
Any conference-related news? Email firstname.lastname@example.org
1 June 12
Nick de Bois MP urges events industry to take on more apprenticeships
’Apprenticeships are a key part of the government agenda, but there are not enough apprenticeships in the events industry as a whole, events minister Nick de Bois... ...read more
Karren Brady delivers keynote at Confex
Karren Brady’s six-point plan for business success was the highlight of her keynote speech on day one of International... ...read more
RenewableUK confirmed as Exhibition Centre Liverpool’s first conference
RenewableUK will be the first conference to take place at Liverpool’s multi-million pound exhibition centre in October... ...read more
Record attendance at London City Selection Fam weekend
Venue consortium London City Selection has reported record attendance at its Pinstripes and Pearls themed annual agent experiential event, which took place 7-9 March.... ...read more
Donal MacIntyre entertains at Confex Industry Leaders’ dinner
More than 30 meetings and events industry leaders gathered for a special eve of Confex dinner at the Hilton London Olympia (11... ...read more