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We address the problem of resource management for a large-scale cloud environment that hosts sites. Our contribution centers around outlining a distributed middleware architecture and presenting one of its key elements, a gossip protocol that meets our design goals: fairness of resource allocation with respect to hosted sites, efficient adaptation to load changes and scalability in terms of both the number of machines and sites. We formalize the resource allocation problem as that of dynamically maximizing the cloud utility under CPU and memory constraints. While we can show that an optimal solution without considering memory constraints is straightforward (but not useful), we provide an efficient heuristic solution for the complete problem instead. We evaluate the protocol through simulation and find its performance to be well-aligned with our design goals.