Outsourcing To Marriott Not Going As Well As Hoped For Ryman Properties

Gaylord Opryland Resort and Convention Center is considered the flagship of the Gaylord brand, which includes four such hotels now run by Marriott International. Credit: Gaylord

Having Marriott International run all of the Gaylord Hotels isn’t paying off as quickly as expected. Nashville-based Ryman Properties is preparing investors for a potential loss.

The idea was that Ryman – which changed its name from Gaylord last year – would still own its big convention center hotels like Opryland and save money by getting out of day-to-day operations. Marriott was thought to be more efficient, and Ryman could lay off hundreds of employees at the Briley Parkway headquarters.

But CEO Colin Reed says in a statement that “cost synergies are materializing more slowly than originally anticipated.”

The Ryman release also says the conversion has been disruptive and to top it off, sales of room nights have slowed.

Reed now says the partnership with Marriott should begin having positive effects next year. Ryman Properties has lowered earnings forecasts for this year to be either flat or down slightly.