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.