The Greenbrier Hotel Corporation, a subsidiary of railroad company CSX Corp. and owner of the historic Greenbrier resort, has filed for bankruptcy and announced an asset purchase agreement with Marriott International.

“A sale to Marriott would be a great outcome for everyone associated with the Greenbrier,” said Michael Gordon, president and managing director of the White Sulphur Springs, WV resort. The agreement with Marriott is contingent on CSX providing $50 million to be used in operation of the resort after the completion of the sale and would be paid over a two-year period after closing, according to a press release issued by the GHC. Marriott, in turn, it says, would pay GHC between $60-$130 million within approximately seven years with the amount depending on timing and the resort's performance.

The resort has struggled mightily, losing $35 million last year, in large part due to an ongoing labor dispute that has meeting planners avoiding the classic property for fear of strike, in addition to the ongoing recession affecting all hotels, especially ultra-luxury resorts.

The transaction isn't expected to be completed until later this year and is contingent on the resort and its unions coming to an agreement satisfactory to Marriott. Recent legislation was passed to allow casino gaming at the Greenbrier and CSX was exploring those options. The state is currently in discussions to give the resort a higher percent of gaming revenues than previously allowed.

An interesting question will be how Marriott handles the idea of casino gaming, which appears to be the quickest and easiest answer to help turn around the struggling resort.