Orlando, FL 5/31/12 (StreetBeat) -- Gaylord Entertainment Co (NYSE:GET) said it will sell the Gaylord hotels brand and the rights to manage four hotels to Marriott International Inc (NYSE:MAR) for $210 million in cash.
The Nashville, Tennessee-based operator of convention-focused hotels and entertainment venues said it will continue to own its hotel properties and other businesses.
Marriott will take over management responsibilities of the four hotels - located in Tennessee, Texas, Florida and Maryland - under long-term agreements.
Gaylord will continue to own and operate the Grand Ole Opry, Ryman Auditorium and other properties.
On the completion of the deal, Gaylord will reorganize itself as a real estate investment trust, effective January 1, 2013.
The company said it will not proceed with the Aurora, Colorado hotel and convention center project in the form it previously anticipated.
It also plans to issue a special one-time dividend of about $415-$450 million, or about $8.47-$9.18 per share based on outstanding shares of about 49 million.
Separately, Marriott said it expects to earn an incentive fee in its first full year of management. The deal will add 2 cents per share to its 2013 earnings, it said.
Gaylord shares rose 12 percent to $38.51 in premarket trade. They had closed at $34.48 on Wednesday on the New York Stock Exchange.
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