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Marriott Acquires Gaylord Entertainment's Gaylord Brand

Scott Kauffman World Property Chennel
Marriott Acquires Gaylord Entertainment's Gaylord Brand - Marriott - hotel - Gaylord - REIT


Gaylord Entertainment Co. (NYSE: GET), of Nashville, Tenn., announced May 31 it agreed to sell the Gaylord Hotels brand and the rights to manage its four hotels to Marriott International, Inc. (NYSE: MAR) for $210 million in cash. After the deal closes, Gaylord will continue to own its hotel properties and other businesses and will reorganize and structure itself as a real estate investment trust (REIT) effective January 1, 2013.



When that happens, the company will be the only lodging REIT focused primarily on group-oriented destination hotels in urban and resort markets.

Gaylord's four properties to be managed by Marriott are: Gaylord Opryland Resort and Convention Center in Nashville, Tenn.; Gaylord Texan Resort and Convention Center in Grapevine, Tex. (Dallas-Ft. Worth); Gaylord Palms Resort and Convention Center in Kissimmee, Fla. (Orlando); and Gaylord National Resort and Convention Center in Prince George's County, Md. (Washington, D.C.).

The transaction is the result of a comprehensive review of strategic options to maximize long-term value for Gaylord shareholders. In concluding to pursue this option with Marriott, Gaylord's board of directors and management team focused on three elements: the cash received in connection with the sale of the brand and management rights, the opportunity to realize substantial cost savings and revenue enhancements due to Marriott's scale and reach in the hospitality market, and the company's positioning as a well capitalized REIT focused on group-oriented destination hotels in urban and resort markets.,

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