News for the Hospitality Executive
Gaylord Entertainment Terminates Agreement to Acquire
Westin La Cantera Resort
for $252 million; Will Take a One-time Charge of $12 million
NASHVILLE, Tenn. April 17, 2008 -- Gaylord Entertainment Company (NYSE: GET) today announced the termination of its agreement to purchase the Westin La Cantera Resort in San Antonio, Texas.
“Over the past several months, we held fruitful discussions with a variety of potential partners. However, in the current capital markets and economic environment, we determined that it is not in the best interest of our shareholders to focus our resources and capital on this project at this time,” said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. “Through this process, we have come to know and respect La Cantera’s world-class leadership and staff. We commend them on the success they have had developing the property into an award-winning hotel and high-performing asset. We know that they will continue to have success.”
As a result of the termination of the transaction, Gaylord Entertainment will take a one-time cash charge of approximately $12 million in the first quarter of 2008.
Gaylord also provided an update on hospitality segment financial results for the first quarter ended March 31, 2008. Gaylord will provide full financial results on May 1, 2008.
“Additionally, Gaylord National recently opened its doors in the Washington D.C. area with approximately 1.5 million room nights already on the books, and as the new standard for convention hotels on the East Coast. Despite delays caused by the general contractor on the project, the property accepted its first customers on March 28, 2008 and is now serving full-house groups with its 2,000 rooms and approximately 450,000 square feet of meeting space. More than 1,500 STARS are delivering terrific service to our loyal large-group customers and we are very enthusiastic about the prospects for the property. The combination of the beautiful physical facility and trademark Gaylord Hotels’ service will make this a game changer for meetings in the region.”
Gaylord will release its first quarter 2008 earnings results before
the market opens on Thursday, May 1, 2008.
|Also See:||Gaylord Entertainment Company Acquiring the Westin La Cantera Resort in San Antonio, Texas for $252.5 million; Planning Three-year, $250 million Expansion / November 2007|