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
PCMA signs global partnership with IAPCO
At the first day of the Frankfurt trade show, IMEX, International Association of Professional Congress Organisers and Professional Convention Management Association have... ...read more
Conferences and events added £55m to Dundee and Angus in 2012
Figures released by the Dundee and Angus Convention Bureau have revealed that conferences and events held in the Dundee and Angus area of Scotland generated £55m for the... ...read more
New Operations Director for Congrex UK
Congrex UK, has appointed Dion Bassett as its new Operations Director, based in the London... ...read more
BDRC to provide mystery shopping and benchmarking for HBAA
The Hotel Booking Agents Association has partnered with benchmarking company, BDRC Continental, to provide mystery shopping and benchmarked rankings for its agency... ...read more
Visit England Awards recognise Manchester Central and Excel London
Convention and exhibition centres, Manchester Central and Excel London, have been crowned as the winners of one of the country’s major business tourism... ...read more