Thu
May 31 2012
09:37 am
Breaking news out of Nashville: Gaylord Entertainment is getting out of the lodging business and selling their hotel brand and operations to Marriot. The company will reorganize as an REIT that will still own the properties, and will "continue to own and operate the Grand Ole Opry, Ryman Auditorium and other attractions as taxable REIT subsidiaries."
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Also interesting...
"As a REIT, the Company will adjust its investment approach on the Aurora, Colorado hotel and convention center project. The Company will no longer view large scale development as a means for growth and will not proceed with the Colorado project in the form previously anticipated."
Investor reaction
Gaylord stock (GET) is trading this AM at 37.77, up 3.29 (+9.54%) at nearly 3X normal volume.
Get the impression GET would rather own than operate
Marriott would rather operate, manage, license, franchise, and book reservations than own. Looks like a pretty good fit for both.
GET scrapped their San Diego plans several years ago.
The days of the MegaConventionMeeting hotels may be over with the possible exceptions of Las Vegas and Orlando.
how does all this affect
how does all this affect "economic development" in knoxville? what should the city be investing in?