Nomura Securities on Gaming & Lodging: Impact of GET/MAR Manangement Deal - Accretive To Both

June 1, 2012 9:10 AM EDT Send to a Friend
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Nomura Securities on Gaming & Lodging: Impact of GET/MAR Manangement Deal

Analyst, Harry Curtis, said, "Impact of Gaylord (NYSE: GET) / Marriott (NYSE: MAR) deal; transaction accretive to both companies. What happens to MAR? In exchange for $210m, MAR receives the Gaylord brand and 35-year management contracts on the firm’s four group-focused properties. We are increasing our 2013 EBITDA estimate to $1,357m from $1,332m, reflecting additional base and incentive fee revenue from the GET transaction. Our EPS estimate increases to $2.22 from $2.20. Value of a Gaylord REIT? Tying into MAR’s operating platform should reduce operating costs such as sales and marketing, procurements, and reservation systems by $44m to $49m. We are increasing our 2013 CCF estimate to $300m from $262m, reflecting ~$38m of cost savings, net of management fee expenses."




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