Bethesda, MD (May 31, 2012) – Marriott International Inc., the largest publicly traded U.S. lodging chain, agreed to buy Gaylord Entertainment Co.’s hotel brand and management company for $210 million to expand its convention business.
The transaction will add four hotels and about 7,800 rooms to Marriott’s management portfolio. Gaylord company traces its roots from an Oklahoma publishing and media company founded by Edward King Gaylord in 1903, will continue to own the properties and will reorganize as a real estate investment trust (REIT).
Marriott’s hotels with convention businesses include the Orlando World Center Marriott in Florida, the San Diego Marriott Marquis & Marina, and the New York Marriott Marquis in Manhattan’s Times Square. The company will operate the Orlando, Washington D.C., Dallas and Nashville Gaylord hotels under management agreements with an initial term of 35 years.
The deal, expected to be completed in October, is conditioned on Gaylord’s shareholders approving the REIT conversion. REITs can avoid paying corporate taxes in the U.S. when they distribute at least 90 percent of their net income as dividends.