In some ways, it"s less of a surprise, however. The deal will allow Gaylord to save on taxes because it will operate as a REIT.

In addition, Marriott will be in a better position to attract large groups, hotel observers said.

Colin Reed, Gaylord"s ceo, said a months-long review revealed this arrangement was the "best pathway to realize the long-term value of our business and to position the Gaylord brand for continued growth."

"Gaylord adds something distinct, a brand that caters to very large groups with all-in-one service offerings that makes it very simple to be a meeting planner," said Arne Sorenson, Marriott"s CEO. He added:

"We like the group business and groups tend to be profitable for hotels year in and year out since group demand tends to hold up well in periods of economic weakness."

He also said the move would help with groups as well as small business meetings, partly because Marriott Reward has 38 million members. "I can"t think of another company as good of a cultural fit as Gaylord."