Marriott would receive $50 million over two years from current owner CSX Corp. to operate the resort, according to The Greenbrier. Marriott would pay the Jacksonville, Florida-based railroad operator between $60 million and $130 million within seven years. The deal is expected to close later this year.
If the deal receives bankruptcy court approval, Bethesda, Maryland-based Marriott would be getting a fabled four-star resort whose roots go back to the 18th century and whose guests have included President Dwight Eisenhower and Monaco's Prince Rainier and Princess Grace. It is also the site of a once-secret Cold War bunker built to house Congress in case of a nuclear attack.
CSX, meanwhile, would be ridding itself of a money losing property that is struggling to fill its 720 rooms amid anemic consumer spending.
The Greenbrier lost $35 million last year and the bankruptcy filing shows the flow of red ink is speeding up. Monthly revenue plummeted approximately 63 percent to just over $1 million in February, from more than $2.7 million in January. The document puts the resort's pretax loss at $4.96 million last month. The filing estimates the resort's assets are worth between $50 million and $100 million. It owes between $100 million and $500 million to 5,000 creditors.