NASHVILLE, Tenn. - On Tuesday morning, Gaylord Entertainment shareholders approved the company's plans to sell management rights to Marriott International for $210-million.
Despite some opposition from majority shareholders, the deal passed with nearly 85 percent approval at their meeting at Opryland Hotel.
Gaylord will retain
ownership of the properties under the new name Ryman Hospitality Properties
Two percent of Gaylord
employees will lose their jobs as part of the transition.
executives said customers will not notice a difference.
"Essentially it's our management
that are all being retained by the Marriott companies to run these hotels, so
from the customers' perspective very, very little will change," said Gaylord CEO
The new deal goes into
effect October 1.
Under the agreement announced in May, Nashville-based Gaylord Entertainment Co. will continue to own its hotel properties and other businesses.
Terms of the 35-year deal will require Marriott to manage the four Gaylord hotels, including the Gaylord Opryland Hotel, under the Gaylord Hotels flag.
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 said 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.
The other Gaylord properties are located in Grapevine, Texas; Kissimmee, Florida; and Prince George's County, Maryland.
(The Associated Press Contributed To This Report.)
Wednesday, May 22 2013 12:04 AM EDT2013-05-22 04:04:23 GMT
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