WHITE SULPHUR SPRINGS, W.Va., March 19, 2009 - The Greenbrier Hotel Corporation (GHC), owner of The Greenbrier resort in White Sulphur Springs, announced today that it has sought Chapter 11 protection to help ensure the viability of the resort.

As part of the filing, GHC asked for approval of financing from CSX Corporation to support the resort s ability to operate in the normal course in the near-term. The filing should have no effect on the day-to-day operations of the resort or its ability to accept and fulfill advance bookings.

Also, GHC announced that it has signed an Asset Purchase Agreement with Marriott Hotel Services, Inc. for the sale of The Greenbrier, subject to substantial conditions.

"A sale to Marriott would be a great outcome for everyone associated with The Greenbrier," said Michael Gordon, president and managing director of the resort.

The agreement with Marriott contemplates that CSX Corporation would provide $50 million, through an affiliate, to be used in the operation of the resort after completion of the sale. These funds would be paid over a two-year period following the closing of the transaction. In turn, Marriott would pay GHC between $60 million and $130 million within approximately seven years, with the actual amount depending on the timing of the payment and The Greenbrier s financial performance.

The transaction, which is not expected to be completed until later in the year, is contingent on the ability of The Greenbrier and its unions to negotiate labor contracts that are satisfactory to Marriott as The Greenbrier competes in a very difficult market environment. It is also subject to a court-supervised auction process in which other qualified purchasers will have an opportunity to bid on the resort. Marriott would assume management responsibility for the resort as soon as the transaction is closed.

The Chapter 11 petition was submitted to the United States Bankruptcy Court for the Eastern District of Virginia in Richmond.
The Greenbrier Hotel Corporation is a wholly owned subsidiary of The Greenbrier Resort and Management Corporation, which is wholly owned by CSX Corporation. 

About The Greenbrier

300 W. Main Street
White Sulphur Springs, WV 24986
304-536-1110

The Greenbrier is an award-winning resort located in White Sulphur Springs, West Virginia. As a National Historic landmark, The Greenbrier's classic architecture, exquisite interior design, carefully sculpted landscape, impeccable service and outstanding amenities have hosted distinguished guests from around the world since 1778.

This renowned property offers 721 rooms, including 33 suites and 96 guest and estate houses. The Greenbrier has 10 lobbies, 40+ meeting rooms and a complete conference center facility. Guests enjoy over 50 recreational activities including 3 championship golf courses, indoor and outdoor tennis courts and a 40,000-square-foot spa. We distinguish ourselves through unparalleled facilities, matchless heritage and a world-class team who accept nothing less than the best, resulting in guest experiences that defy description and establish The Greenbrier as THE preeminent resort in the ultra-luxury market.

The Greenbrier Hotel Corporation
Lynn Swann of The Greenbrier Hotel Corporation,
+1-304-536-7857, [email protected] 
Web Site: http://www.greenbrier.com/