$210 million deal seals Marriott as the new management company for Gaylord National Resort & convention Center.
Marriott International announced a $210 million deal Thursday to run four Gaylord Entertainment hotels, an agreement that will boost the Bethesda firm’s dominance over Washington’s convention-hotel business and in all likelihood send the cost of staying at the Gaylord shooting as high as it’s atrium ceilings.
The deal gives Marriott control over the Gaylord National Resort & Convention Center in Oxon Hill, a complex that has long been viewed as a key competitor to Marriott’s existing conference hotels in the city, as well as the future 1,175-room Washington Marriott Marquis opening next door to the Walter E. Washington Convention Center in 2014. So now Marriott has the great pleasure of competing with itself. I think this is an awful move for consumers. I also think with the clout Marriott carries, gambling is as good as a done deal there now.
The downturn in the economy caused Gaylord International’s stock to plummet from a robust $57 a share in 2007, to just $6 a share in 2009. Nashville-based Gaylord was won over by Marriott’s capacity to reduce costs through its economies of scale, central reservations and procurement services, said Colin V. Reed, Gaylord’s chairman and chief executive. Gaylord expects to save between $33 million and $40 million a year in operations expenses by “changing its business model,” AKA firing most of the current staff from the sales and accounting divisions.
It’s just my opinion but I’m sad to see Marriott come to the National Harbor. It kinda cheapens it. If they want to sway my opinion, I can be reached via this blog. The Gaylord isn’t an independent, stand alone hotel by any stretch, but it wasn’t common to this area. This feels like we built a big, brand new house and moved our furniture in that we had in the 1990’s, complete with burgundy carpet.