May 31, 2012 /PRNewswire/ -- Marriott International, Inc. (NYSE: MAR) announced today that it has entered into an agreement with Gaylord Entertainment Company (NYSE: GET) to acquire the Gaylord brand and hotel management company for
$210 million. The transaction is conditioned on Gaylord Entertainment's shareholders approving the company's conversion into a real estate investment trust. If approved, Gaylord will continue to own the existing Gaylord hotels and Marriott will assume management of these properties under long-term agreements. The transaction will add 4 hotels and approximately 7,800 rooms to Marriott's portfolio.
Gaylord Hotels include Gaylord Opryland® in
; Gaylord Palms® in
; Gaylord Texan® on Lake Grapevine near
, and Gaylord National® on the
in National Harbor,
Gaylord Hotels are uniquely positioned in the group and family leisure segments with approximately 2 million square feet of meeting and event space. They offer multiple opportunities for recreation, shopping, and dining, as well as entertainment, such as the partnership with DreamWorks™.
, Marriott International president and chief executive officer, said, "We are excited to add Gaylord Hotels to our brand portfolio and are thrilled Gaylord Entertainment selected us to manage their properties. We have long been impressed with the hotels Gaylord has created, as well as their skill in hosting major meetings and events and attracting the family leisure market. This is a tremendous opportunity to advance growth and opportunity for both Marriott International and the Gaylord hotel brand.
"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. Gaylord's "everything-in-one-place" properties are very attractive to group meeting planners. As a new REIT owner, Gaylord Entertainment should benefit from improved hotel profitability associated with Marriott's ability to generate substantial cost savings and incremental demand."