Business/Finance

Gaylord to sell hotel brand to Marriott for $210M

Thursday, May 31, 2012

Gaylord Entertainment says it has agreed to sell its hotel brand and the rights to manage its four hotels to Marriott for $210 million in cash.

Under the agreement, Nashville, Tenn.-based Gaylord Entertainment Co. will continue to own its hotel properties and other businesses. It will reorganize as a real estate investment trust effective Jan. 1.

The deal stems from Gaylord's months-long review of strategic options.

Its shares climbed 13 percent in premarket trading to $39 per share.

Gaylord says Marriott International Inc.'s presence in the hotel industry will help it cut costs and boost revenue. Annual savings are expected to total between $33 million and $40 million.

Gaylord says it will continue to own and operate the Grand Ole Opry, Ryman Auditorium and other attractions as taxable real estate investment trust subsidiaries.

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