Gaylord Sells Hotels Brand Rights, Management of Four Properties to Marriott International for $210 Million

June 3, 2012

Following a strategic review, Gaylord Entertainment has decided to sell the Gaylord Hotels brand and the rights to manage its four convention center/hotels properties to Marriott International for $210 million.

Once the sale is finalized, Gaylord will continue to own its hotel properties and other businesses and will reorganize and elect to be treated as a real estate investment trust (REIT) effective Jan. 1.

By transferring day-to-day control of the hotels to Marriott, Gaylord expects to save $33 million to $40 million a year.

The four properties include the Gaylord Opryland Resort and Convention Center in Nashville, Tenn.; Gaylord Texan Resort and Convention Center in Grapevine, Texas; Gaylord Palms Resort and Convention Center in Kissimmee, Fla.; and Gaylord National Resort and Convention Center in Prince George’s County, Md.

“We are pleased to be announcing today a transaction that we believe allows shareholders the potential to realize maximum long-term value for their shares in Gaylord Entertainment,” said Colin V. Reed, Gaylord’s chairman and CEO.

He added, “Our months-long review of various options led us to the conclusion that the REIT structure represents the best pathway to realize the long-term value of our business and to position the Gaylord brand for continued growth.”

The strategic review found that the sale of the brand and management rights would have several long-term benefits for the shareholders and the company, according to Gaylord officials.

The company would have the cash received in connection with the sale of the brand and management rights, there would be the opportunity to realize substantial cost savings and revenue enhancements because of Marriott’s scale and reach in the hospitality market and Gaylord would be a well-capitalized REIT focused on group-oriented destination hotels in urban and resort markets.

Once the deal is finalized, the four Gaylord properties will join the Marriott portfolio of brands.

Marriott will receive a management contract with an initial 35 year term, 2 percent base management fee and an incentive fee linked to improvement in hotel profitability.

“We have long admired Gaylord, both for the hotels they have created and for their superb job in hosting major meetings and events,” said Arne Sorenson, Marriott International president and CEO.

He added, “Working with the Gaylord brand, the existing four hotels and a Gaylord team that provides outstanding customer service, we are convinced there is tremendous upside potential for growing hotel revenues and profits and developing careers."

Gaylord will continue to own and operate the Grand Ole Opry, Ryman Auditorium and other attractions as taxable REIT subsidiaries.

The deal will impact the Aurora, Colo., hotel and convention center project, according to Gaylord officials.

“The company will no longer view large-scale development as a means for growth and will not proceed with the Colorado project in the form previously anticipated. The company will reexamine how the project could be completed with minimal financial commitment by Gaylord during the development phase,” Gaylord company officials said.

Add new comment

Partner Voices
One of the most iconic names on the Las Vegas Strip just got an upgrade. Mandalay Bay has everything that your business needs from a refreshed convention space designed to inspire productivity and creativity, to an impressive selection of world-class restaurants and amenities. If you're looking for a venue that's both inviting and innovative, you have to be here. New Wave Experiences Mandalay Bay continues to invest in a new wave of enhancements both in the convention space and within the resort as a whole. New restaurant openings including Orla by Michael Mina, drawing inspiration from the award-winning chef’s childhood in Egypt and with flavors and décor inspired by the spices found in markets common to coastal Mediterranean towns, as well as Caramá by Wolfgang Puck, bringing the essence of Italy and spirit of Wolfgang into one concept, are recent additions. The Four Seasons Hotel Las Vegas also experienced a recent remodel of all 424 rooms. Swingers, a high-end, adults-only golf and entertainment concept will debut in Fall 2024. Enhanced Technology Creating a truly effective conference venue requires careful thought into what a business needs: the right technology, capacity, and inspiration to bring ideas to the next level. As part of the resort’s refresh, Mandalay Bay implemented state-of-the-art technology upgrades, installing cutting-edge Cat6A Ethernet cabling throughout the convention center. This advancement doubles the frequency of data transmission, enabling lightning-fast speeds up to 9400% faster. The convention center now boasts 11 dynamic digital walls, spanning up to 24' x 13', strategically positioned for brand placements, sponsorships and targeted event messaging. Additionally, attendees can benefit from 20 double-sided 55" mobile flexible display units, facilitating effortless navigation to meeting rooms and events. RFID locks were installed on all meeting room doors, and over 200 motion detection cameras have been placed throughout the space. Refreshing New Design & Fine Art The newly remodeled convention space provides a bright and vibrant atmosphere that complements Mandalay Bay's tropical-inspired brand. Featuring white-washed walls and ceilings adorned with bold floral patterns in cerulean and coral tones, the space is complemented by warm walnut accent walls. In addition to the redesign of all pre-function spaces, meeting rooms and ballrooms, Mandalay Bay's 1 million square feet of exhibit space has undergone a rejuvenation, including new paint, covered pillars and relocated strobe lights. Sustainable Spectacles Mandalay Bay is committed to Focused on What Matters and creating more responsible meetings. Refillable water stations all available around the resort, cutting unnecessary plastic usage from single-use bottles. The Mandalay Bay campus’ recent upgrades represent a bold step forward in redefining the Las Vegas experience. With a focus on innovation, sustainability, and unparalleled service, Mandalay Bay sets a new standard for excellence in business hospitality. Whether you're seeking cutting-edge conference facilities, world-class dining options, or simply a luxurious retreat, an unparalleled meeting experience awaits.