Hotel Online
News for the Hospitality Executive

advertisement
 
 

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. 

  • Gaylord Hotels’ RevPAR is expected to increase 3 to 4 percent over the first quarter 2007. 
  • Gaylord Hotels’ Total RevPAR is expected to increase 4.5 to 5.5 percent over the first quarter 2007. 
  • Gaylord Hotels’ segment Consolidated Cash Flow (CCF) is expected to be in the range of $52 million to $56 million in the first quarter of 2008 compared to $46 million in the same period last year. It should be noted that CCF in the first quarter 2007 was impacted by a $2.9 million charge related to terminating the lease for certain food and beverage space at Gaylord Opryland. Gaylord Hotels 1Q 2008 CCF does not include the aforementioned one-time cash charge of approximately $12 million related to La Cantera. 
Reed added, “Our first quarter results are expected to come in as planned. Our unique business model has proven resilient in this first quarter where many other companies have experienced difficulty during a tough economic environment. We remain enthusiastic about the long-term strength of our business and will discuss our outlook for the rest of 2008 on our upcoming earnings call.” 

“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. 
 

.
Contact:

Gaylord Entertainment
Brian Abrahamson, 615-316-6302
Vice President of Communications
babrahamson@gaylordentertainment.com

 

.
.
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
.

 


To search Hotel Online data base of News and Trends Go to Hotel.OnlineSearch
Home | Welcome| Hospitality News | Classifieds| One-on-One |
Viewpoint Forum | Industry Resources | Press Releases
Please contact Hotel.Onlinewith your comments and suggestions.