Posh Greenbrier Seeks Bankruptcy, Sale to Marriott

The Greenbrier Resort in Sulpher Springs, WV, is seen in a Feb., 28, 2002 file photo. The posh...

The Greenbrier Resort in Sulpher Springs, WV, is seen in a Feb., 28, 2002 file photo. The posh Greenbrier resort that has housed presidents and royalty in West Virginia has filed for Chapter 11 bankruptcy and signed a deal to sell itself to hotel giant Marriott International.The four-star resort said Thursday, March 19, 2009, that its owner, Jacksonville, Fla.-based railroad company CSX Corp., would lend Marriott $50 million to operate the hotel for two years. (AP Photo/Jon C. Hancock, File)

(AP)

The historic Greenbrier resort, which has gone from hosting presidents and royalty to posting losses, filed for Chapter 11 bankruptcy protection Thursday and unveiled a plan to sell itself to hotel giant Marriott International Inc. for up to $130 million.

A recession-fueled drop in demand for luxury hotel rooms helped drive The Greenbrier to a deal that would end nearly a century of ownership by railroad company CSX Corp. and its predecessors of the resort, which blossomed from an 18th century sulfur spring retreat to a society hotspot in the roaring 1920s.

Under the sales plan revealed in the bankruptcy filing, Marriott would receive $50 million over two years from Jacksonville, Fla.-based CSX Corp. to operate the resort. Marriott in turn would pay CSX between $60 million and $130 million within seven years, depending on timing and the hotel's financial performance. The deal is expected to close later this year, pending new labor agreements and approval from a bankruptcy court, which is expected to allow other potential buyers to make bids.

Bethesda, Md.-based Marriott would be getting a fabled resort on the National Register of Historic Places whose guests have included Dwight Eisenhower and 25 other U.S. presidents, Monaco's Prince Rainier and Princess Grace and the Duke and Duchess of Windsor.

The 6,500-acre resort in southeastern West Virginia with 721 rooms also is the site of a once-secret Cold War bunker built to house Congress in case of a nuclear attack.

"The Greenbrier is an historic national treasure and we are excited by the opportunity," Marriott spokesman Thomas Marder said. "There are a number of conditions to work through which we hope will be completed successfully."

Marder said Marriott plans to retain the Greenbrier name.

Voters narrowly approved a measure in November allowing casino-style gambling at the resort. Asked about Marriott's plans for gambling, Marder did not answer directly. "Our interest in the Greenbrier is unrelated to the changes in the county's gaming laws," he said.