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Gaylord Entertainment Co. Reports a 1st Qtr 2008 Loss of $7.3 million Compared
with a Profit of $3.5 million in Previous Year; Loss Includes a $12 million
Charge Related to its Cancellation of the Deal to Buy
Westin La Cantera Resort, San Antonio
.
Hotel Operating Statistics
.

NASHVILLE, Tenn. May 1, 2008 - Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the first quarter ended March 31, 2008.

For the first quarter ended March 31, 2008:

  • Consolidated revenue increased 7.1 percent to $195.2 million in the first quarter of 2008 from $182.4 million in the same period last year, driven by increases in Average Daily Rate (“ADR”) for Gaylord Hotels and strong outside-the-room spend, specifically from banquet revenues at Gaylord Opryland and Gaylord Palms.
  • Loss from continuing operations was $6.8 million, or a loss of $0.17 per share, compared to income from continuing operations of $0.7 million, or $0.02 per share, in the prior-year quarter.
  • Hospitality segment total revenue increased 6.9 percent to $177.9 million in the first quarter of 2008 compared to $166.5 million in the prior-year quarter. Gaylord Hotels’ revenue per available room1 (“RevPAR”) and total revenue per available room2 (“Total RevPAR”) increased 3.6 percent and 5.1 percent, respectively, compared to the first quarter of 2007.
  • Adjusted EBITDA3 was $14.6 million in the first quarter of 2008 compared to $30.1 million in the prior-year quarter. The year-over-year decrease in Adjusted EBITDA was primarily due to the $12.0 million impairment charges associated with the termination of the La Cantera acquisition and the $15.4 million pre-opening costs associated with the Gaylord National.
  • Consolidated Cash Flow4 (“CCF”) increased 22.0 percent to $45.4 million in the first quarter of 2008 compared to $37.2 million in the same period last year. CCF in the first quarter of 2007 included the impact of a $2.9 million charge related to the termination of a tenant lease at Opryland.
“Gaylord Entertainment’s financial performance during the first quarter was solid and in line with our expectations. Our differentiated meetings-focused strategy demonstrated its resilience in the first quarter; groups traveled as expected and outside-the-room spending remained robust. This approach led to increased profitability and additional advanced bookings from large groups despite the current economic conditions,” said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment.

Reed added, “We remain enthusiastic about the long-term prospects of our business. We continue to achieve success in building strong brand equity and in creating a product that is unmatched in the markets we serve. The solid group demand we saw in the first quarter gives us the confidence that our growth strategy is the right approach to growing and building the business.”

Segment Operating Results

Hospitality

Key components of the Company’s hospitality segment performance in the first quarter of 2008 include:

  • Gaylord Hotels’ RevPAR increased 3.6 percent to $134.34 in the first quarter of 2008 compared to $129.65 in the prior-year quarter. Gaylord Hotels’ Total RevPAR increased 5.1 percent to $323.64 in the first quarter of 2008 compared to $307.81 in the first quarter of 2007. The increase in Total RevPAR reflects strong outside-the-room spending levels and solid banquet revenue across the Gaylord network.
  • Gaylord Hotels’ CCF increased 21.5 percent to $55.8 million in the first quarter of 2008 compared to $46.0 million in the same period last year. This increase was driven by higher room rates, higher food and beverage profits, and a continued focus on effective cost control. CCF margins for the hospitality segment increased 380 basis points to 31.4 percent, compared to 27.6 percent in the prior-year quarter. The comparisons to the first quarter of last year were impacted by the $2.9 million charge related to the termination of a tenant lease at Opryland.
  • Gaylord Hotels’ same-store net definite bookings for all future years, excluding Gaylord National, decreased 21.9 percent to 262,875 room nights booked in the first quarter of 2008 compared to the same period in 2007. It should be noted that this quarter’s advanced bookings represents the second best first quarter performance on record.
Reed continued, “Our brand continues to attract high quality customers. The fundamental differences between Gaylord and those with whom we compete – the best in service, the best in accommodations, the best in convention center layout and design – allow us to retain a base of highly loyal customers, command premium rates, maintain strong occupancy levels, secure robust outside-the-room spending, and post consistent growth in CCF. Our newest property, Gaylord National, is a perfect physical example of what we do for our customers. Our STARS are each individually responsible for our continued strength of service as a brand. Their dedication and the exceptional service they provide each and every day create the platform for our financial success.”

At the property level, Gaylord Opryland generated revenue of $72.6 million in the first quarter of 2008, a 14.6 percent increase compared to the prior-year quarter, largely a result of strong outside-the-room spending levels, solid banquet revenues and increased ADR. First quarter RevPAR increased 9.4 percent to $119.46 compared to $109.19 in the same period last year, driven by increased ADR and occupancy levels. Total RevPAR increased 11.9 percent to $282.52 in the first quarter of 2008 compared to the prior-year quarter reflecting strong outside-the-room spend. As a result, CCF increased 77.8 percent to $21.4 million, versus $12.0 million in the year-ago quarter. Prior-year first quarter CCF included a $2.9 million charge to terminate a lease related to certain food and beverage space at the Gaylord Opryland. CCF margin for the quarter was 29.4 percent, compared to the 19.0 percent CCF margin (including the effect of the $2.9 million charge) in the prior-year quarter. First quarter 2008 operating statistics reflect 5,171 room nights out of available inventory compared to 8,333 room nights out of available inventory in the first quarter of 2007 due to the Opryland room renovation, which has now been completed.

Gaylord Palms posted revenue of $55.1 million in the first quarter of 2008, an increase of 4.7 percent compared to $52.6 million in the prior-year quarter. First quarter RevPAR decreased 0.5 percent to $173.20 compared to $174.08 in the same quarter last year due to a slight decrease in ADR, which was partially offset by solid occupancy levels attributed to the impact of the Easter holiday falling in the first quarter of 2008, which helped drive transient occupancy in Orlando. Total RevPAR increased 3.6 percent to $430.26 driven by an increase in occupancy and the popularity of the new Sora restaurant. CCF increased to $20.0 million compared to $18.9 million in the prior-year quarter, resulting in a CCF margin of 36.3 percent, a 30 basis point increase from the prior-year quarter.

Gaylord Texan revenue decreased 0.6 percent to $48.3 million in the first quarter of 2008, compared to $48.6 million in the prior-year quarter. RevPAR in the first quarter increased 0.3 percent to $140.55 due to a 6.0 percent increase in ADR. These results offset a 4.4 percentage point decrease in occupancy which was partially driven by the impact of the Easter holiday falling in the first quarter of 2008. Total RevPAR decreased 1.7 percent to $351.17 driven by a temporary shift to lower-spend groups. CCF decreased 3.6 percent to $14.1 million in the first quarter of 2008, versus $14.6 million in the prior-year quarter, resulting in a 29.1 percent CCF margin, a 90 basis point decrease from the prior-year quarter.

Development Update

Gaylord National in Prince George’s County outside of Washington D.C. opened its doors to its first groups on March 28, 2008, although full operational capacity was not achieved until early April due to the delay in construction completion. The company spent an additional $125.0 million in the first quarter of 2008, bringing total capital expenditures for the hotel to date to $846.7 million. The Company expects it will receive additional billings as well as proposed change orders from the general contractor for additional costs. The Company intends to vigorously negotiate any such proposed changes with the general contractor to minimize any cost increases. Gaylord National booked an additional 139,450 room nights in the first quarter of 2008, bringing National’s cumulative net definite room nights booked to approximately 1.4 million room nights.

“We are delighted with the continued strong demand for Gaylord National, which has become the premier meetings hotel on the East Coast. The property, which is the largest non-gaming convention hotel ever opened in the United States, is truly exceptional,” continued Reed. “While construction company delays led to an opening that was certainly not up to Gaylord’s high standards, thanks to the hard work of our nearly 1,500 STARS at the hotel we are pleased to report that our guests are now enjoying positive customer service experiences. We will continue to perfect the operating model in the coming quarters and update you on our performance as appropriate.”

Additionally, as previously announced in April, the Company terminated its agreement to acquire the La Cantera Resort in San Antonio, Texas. Gaylord took a one-time charge of approximately $12.0 million as a result of the termination of this transaction.

Reed continued, “We are mindful of the current market environment and will be opportunistic and disciplined in pursuing projects that are in the best interest of our shareholders. Our expansion strategy remains intact and we continue to move forward with existing projects at Gaylord Opryland and Gaylord Texan.”

Opry and Attractions

Opry and Attractions segment revenue increased 8.0 percent to $17.1 million in the first quarter of 2008, compared to $15.8 million in the year-ago quarter. The segment’s CCF decreased to $0.3 million in the first quarter of 2008 from $0.6 million in the prior-year quarter.

Corporate and Other

Corporate and Other operating loss totaled $25.5 million in the first quarter of 2008 compared to an operating loss of $13.0 million in the same period last year. The loss reflects the previously announced $12.0 million impairment charge related to the termination of the La Cantera transaction. Corporate and Other CCF in the first quarter of 2008 decreased 15.0 percent to a loss of $10.8 million compared to a loss of $9.4 million in the same period last year.

Liquidity

As of March 31, 2008, the Company had long-term debt outstanding, including current portion, of $1,165.5 million and unrestricted and restricted cash of $17.1 million. $409.3 million of the Company’s $1.0 billion credit facility remained undrawn at the end of the first quarter of 2008, which included $10.7 million in letters of credit. The Company also repurchased approximately 656,700 shares of the Company's stock at a cost of approximately $20 million during the first quarter of 2008. The Company has a share repurchase plan in place with authorization to repurchase up to $80 million of the Company's stock.

Outlook

The following business performance outlook is based on current information as of May 1, 2008. The Company does not expect to update guidance before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.

“A year ago, we outlined the growth strategies in place for the business going forward. Since then, we have focused on enhancing our industry leadership through expansions of our existing properties, opening Gaylord National, increasing margins through strategic cost management programs, maintaining our high levels of service and our ability to command premium rates, and making certain that occupancy levels remain strong. We are pleased that we have been successful in all of these areas and our hard work has resulted in a stronger and better brand today,” said Reed.

“We are confident that Gaylord National will greatly increase our ability to meet the strong demand for our brand. We are enthusiastic about the long-term potential of the property and though construction delays caused a few bumps upon opening, these issues are now behind us. The feedback we are receiving from meeting planners and guests has been positive and the property is performing well. However, because of these early challenges at the property and their associated costs, we believe that it is most prudent to trim our full-year 2008 CCF guidance for the hotel by $5 million,” continued Reed.

“Looking ahead, we believe that our core group business and our growth plans will continue to yield significant value for our shareholders and reinforce our standing as the premier hospitality company in the meetings and conventions industry. That said, we are attentive to the current slow down in the broader economy and how decreased discretionary spending creates some risk for the components of our business driven by transient guest levels. This represents only a small portion of our business and is factored into our guidance. Our leading performance indicators remain strong and as such, we are reiterating same-store guidance for the full year 2008,” concluded Reed.
         

2008
Consolidated Cash Flow     
Gaylord Hotels (Same Store)   $197 – 207 Million
Gaylord National                    $45 – 55 Million
Opry and Attractions              $13 – 14 Million
Corporate and Other               $(49 – 46) Million
 Total Consolidated Cash Flow  $206 – 230 Million
   
Gaylord Hotels Advanced Bookings   1.3 – 1.4 Million
Gaylord Hotels RevPAR                    4.5% – 7%
Gaylord Hotels Total RevPAR            4% – 6%

 
            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES

           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              Unaudited
                (In thousands, except per share data)

                                                    Three Months Ended
                                                         Mar. 31,
                                                    ------------------
                                                      2008     2007
                                                    ------------------
Revenues                                            $195,235 $ 182,358
Operating expenses:
   Operating costs                                   113,489   108,553
   Selling, general and administrative (a) (b)        39,541    40,800
   Impairment charge                                  12,031         -
   Preopening costs                                   15,575     2,945
   Depreciation and amortization                      21,211    19,460
                                                    ------------------
           Operating (loss) income                   (6,612)    10,600
                                                    ------------------

Interest expense, net of amounts capitalized         (3,579)  (18,777)
Interest income                                          324       517
Unrealized loss on Viacom stock and CBS stock              -   (2,789)
Unrealized gain on derivatives                             -     9,569
Income (loss) from unconsolidated companies              236   (1,918)
Other gains and (losses), net (c)                         59     5,863
                                                    ------------------

           (Loss) income before (benefit) provision
            for income taxes                         (9,572)     3,065

(Benefit) provision for income taxes                 (2,724)     2,408
                                                    ------------------

           (Loss) income from continuing operations  (6,848)       657

(Loss) income from discontinued operations, net of
 taxes                                                 (458)     2,807
                                                    ------------------

           Net (loss) income                        $(7,306) $   3,464
                                                    =-----------------
 

Basic net (loss) income per share:
---------------------------------------------------
           (Loss) income from continuing operations $ (0.17) $    0.02
           (Loss) income from discontinued
            operations, net of taxes                $ (0.01) $    0.06
                                                    ------------------
           Net (loss) income                        $ (0.18) $    0.08
                                                    ==================

Fully diluted net (loss) income per share:
---------------------------------------------------
           (Loss) income from continuing operations $ (0.17) $    0.02
           (Loss) income from discontinued
            operations, net of taxes                $ (0.01) $    0.06
                                                    ------------------
           Net (loss) income                        $ (0.18) $    0.08
                                                    ==================

Weighted average common shares for the period:
---------------------------------------------------
           Basic                                      41,246    40,802
           Fully-diluted                              41,246    42,112

(a)Includes non-cash lease expense of $1,530 and $1,554 for the three
    months ended March 31, 2008 and 2007, respectively, related to the
    effect of recognizing the Gaylord Palms ground lease expense on a
    straight-line basis.

(b)Includes a non-recurring $2,862 charge to terminate a tenant lease
    related to certain food and beverage space at Gaylord Opryland for
    the three months ended March 31, 2007.

(c)Includes a non-recurring $4,539 gain related to the sale of
    corporate assets for the three months ended March 31, 2007.

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                              Unaudited
                            (In thousands)

                                                  Mar. 31,   Dec. 31,
                                                    2008       2007
                                                 ---------- ----------
                     ASSETS

Current assets:
   Cash and cash equivalents - unrestricted      $   15,883 $   23,592
   Cash and cash equivalents - restricted             1,236      1,216
   Trade receivables, net                            59,282     31,371
   Estimated fair value of derivative assets            937          -
   Deferred income taxes                              7,689      7,689
   Other current assets                              38,143     30,180
   Current assets of discontinued operations            147        797
                                                 ---------- ----------
      Total current assets                          123,317     94,845

Property and equipment, net of accumulated
 depreciation                                     2,335,174  2,196,264
Intangible assets, net of accumulated
 amortization                                           162        174
Goodwill                                              6,915      6,915
Indefinite lived intangible assets                    1,480      1,480
Investments                                           4,409      4,143
Estimated fair value of derivative assets             4,467      2,043
Long-term deferred financing costs                   13,466     14,621
Other long-term assets                               18,719     16,382
Long-term assets of discontinued operations               -          -
                                                 ---------- ----------

   Total assets                                  $2,508,109 $2,336,867
                                                 ========== ==========

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Current portion of long-term debt and capital
    lease obligations                            $    2,093 $    2,058
   Accounts payable and accrued liabilities         257,080    240,827
   Current liabilities of discontinued
    operations                                        2,741      2,760
                                                 ---------- ----------
      Total current liabilities                     261,914    245,645

Long-term debt and capital lease obligations,
 net of current portion                           1,163,424    979,042
Deferred income taxes                                67,936     73,662
Estimated fair value of derivative liabilities        4,414          -
Other long-term liabilities                          97,322     96,484
Long-term liabilities and minority interest of
 discontinued operations                                520        542
Stockholders' equity                                912,579    941,492
                                                 ---------- ----------

   Total liabilities and stockholders' equity    $2,508,109 $2,336,867
                                                 ========== ==========

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                              Unaudited
               (in thousands, except operating metrics)
 

Adjusted Earnings Before Interest,
 Taxes, Depreciation and
 Amortization ("Adjusted
EBITDA") and Consolidated Cash Flow
 ("CCF") reconciliation:                Three Months Ended Mar. 31,
                                     ---------------------------------
                                           2008             2007
                                     ---------------- ----------------
                                         $     Margin     $     Margin
                                     ---------------- ----------------
Consolidated
------------------------------------
   Revenue                           $ 195,235 100.0% $ 182,358 100.0%

   Net (loss) income                 $ (7,306)  -3.7% $   3,464   1.9%
     Loss (income) from discontinued
      operations, net of taxes             458   0.2%   (2,807)  -1.5%
     (Benefit) provision for income
      taxes                            (2,724)  -1.4%     2,408   1.3%
     Other (gains) and losses, net        (59)   0.0%   (5,863)  -3.2%
     (Income) loss from
      unconsolidated companies           (236)  -0.1%     1,918   1.1%
     Unrealized gain on derivatives          -   0.0%   (9,569)  -5.2%
     Unrealized loss on Viacom stock
      and CBS stock                          -   0.0%     2,789   1.5%
     Interest expense, net               3,255   1.7%    18,260  10.0%
                                     ---------------- ----------------
   Operating (loss) income (1)         (6,612)  -3.4%    10,600   5.8%
     Depreciation & amortization        21,211  10.9%    19,460  10.7%
                                     ---------------- ----------------
   Adjusted EBITDA                      14,599   7.5%    30,060  16.5%
     Pre-opening costs                  15,575   8.0%     2,945   1.6%
     Impairment charge                  12,031   6.2%         -   0.0%
     Other non-cash expenses             1,530   0.8%     1,554   0.9%
     Stock option expense                1,526   0.8%     1,407   0.8%
     Other gains and (losses), net
      (2)                                   59   0.0%     5,863   3.2%
     Losses and (gains) on sales of
      assets                                32   0.0%   (4,664)  -2.6%
                                     ---------------- ----------------
   CCF                               $  45,352  23.2% $  37,165  20.4%
                                     ================ ================

Hospitality segment
------------------------------------
   Revenue                           $ 177,944 100.0% $ 166,461 100.0%
   Operating income (1)                 19,917  11.2%    24,617  14.8%
     Depreciation & amortization        18,261  10.3%    16,425   9.9%
     Pre-opening costs                  15,575   8.8%     2,945   1.8%
     Other non-cash expenses             1,530   0.9%     1,554   0.9%
     Stock option expense                  470   0.3%       423   0.3%
     Other gains and (losses), net          59   0.0%      (10)   0.0%
     Losses on sales of assets              32   0.0%         -   0.0%
                                     ---------------- ----------------
   CCF                               $  55,844  31.4% $  45,954  27.6%
                                     ================ ================

Opry and Attractions segment
------------------------------------
   Revenue                           $  17,116 100.0% $  15,842 100.0%
   Operating loss                      (1,044)  -6.1%   (1,006)  -6.4%
     Depreciation & amortization         1,300   7.6%     1,556   9.8%
     Stock option expense                   78   0.5%        77   0.5%
     Other gains and (losses), net           -   0.0%       (2)   0.0%
                                     ---------------- ----------------
   CCF                               $     334   2.0% $     625   3.9%
                                     ================ ================

Corporate and Other segment
------------------------------------
  Revenue                            $     175        $      55
  Operating loss                      (25,485)         (13,011)
     Depreciation & amortization         1,650            1,479
     Impairment charge                  12,031                -
     Stock option expense                  978              907
     Other gains and (losses), net
      (2)                                    -            5,875
     Gains on sales of assets                -          (4,664)
                                     ---------------- ----------------
  CCF                                $(10,826)        $ (9,414)
                                     ================ ================

(1)Includes a non-recurring $2,862 charge to terminate a tenant lease
 related to certain food and beverage space at Gaylord Opryland for
 the three months ended March 31, 2007.

(2)Includes a non-recurring $4,539 gain related to the sale of
 corporate assets for the three months ended March 31, 2007.

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                              Unaudited
               (in thousands, except operating metrics)

                                   -----------------------------------
                                       Three Months Ended Mar. 31,
                                   -----------------------------------
                                         2008              2007
                                   ---------------- ------------------

HOSPITALITY OPERATING METRICS:

Gaylord Hospitality Segment (1)
----------------------------------

Occupancy                                     77.3%              77.3%
Average daily rate (ADR)             $       173.75   $         167.63
RevPAR                               $       134.34   $         129.65
OtherPAR                             $       189.30   $         178.16
Total RevPAR                         $       323.64   $         307.81

Revenue                              $      177,944   $        166,461
CCF (2)                              $       55,844   $         45,954
CCF Margin                                    31.4%              27.6%
 

Gaylord Opryland (1)
----------------------------------

Occupancy                                     76.0%              74.2%
Average daily rate (ADR)             $       157.21   $         147.20
RevPAR                               $       119.46   $         109.19
OtherPAR                             $       163.06   $         143.26
Total RevPAR                         $       282.52   $         252.45

Revenue                              $       72,591   $         63,355
CCF (2)                              $       21,372   $         12,017
CCF Margin                                    29.4%              19.0%
 

Gaylord Palms
----------------------------------

Occupancy                                     84.4%              83.8%
Average daily rate (ADR)             $       205.15   $         207.80
RevPAR                               $       173.20   $         174.08
OtherPAR                             $       257.06   $         241.31
Total RevPAR                         $       430.26   $         415.39

Revenue                              $       55,050   $         52,564
CCF                                  $       19,962   $         18,939
CCF Margin                                    36.3%              36.0%
 

Gaylord Texan
----------------------------------

Occupancy                                     76.2%              80.6%
Average daily rate (ADR)             $       184.37   $         173.95
RevPAR                               $       140.55   $         140.13
OtherPAR                             $       210.62   $         217.14
Total RevPAR                         $       351.17   $         357.27

Revenue                              $       48,287   $         48,585
CCF                                  $       14,056   $         14,576
CCF Margin                                    29.1%              30.0%
 

Nashville Radisson and Other (3)
----------------------------------

Occupancy                                     62.1%              60.5%
Average daily rate (ADR)             $        99.23   $          98.20
RevPAR                               $        61.67   $          59.43
OtherPAR                             $        13.02   $          13.54
Total RevPAR                         $        74.69   $          72.97

Revenue                              $        2,016   $          1,957
CCF                                  $          454   $            422
CCF Margin                                    22.5%              21.6%

(1) Excludes 5,171 and 8,333 room nights that were taken out of
 service during the three months ended March 31, 2008 and 2007,
 respectively, as a result of the rooms renovation program at Gaylord
 Opryland.

(2) Includes a non-recurring $2,862 charge to terminate a tenant lease
 related to certain food and beverage space at Gaylord Opryland for
 the three months ended March 31, 2007.

(3) Includes other hospitality revenue and expense

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
             RECONCILIATION OF FORWARD-LOOKING STATEMENTS
                              Unaudited
               (in thousands, except operating metrics)

Adjusted Earnings Before Interest, Taxes,
 Depreciation
and Amortization ("Adjusted EBITDA") and
 Consolidated Cash Flow ("CCF") reconciliation:
                                                    Guidance Range
                                                 ---------------------
                                                    Full Year 2008
                                                     Low       High
                                                 ---------- ----------
Hospitality segment (same store)
------------------------------------------------
  Estimated Operating income (loss)              $  124,500 $  132,000
    Estimated Depreciation & amortization            64,000     66,000
                                                 ---------- ----------
  Estimated Adjusted EBITDA                      $  188,500 $  198,000
    Estimated Pre-opening costs                         500        550
    Estimated Non-cash lease expense                  6,100      6,100
    Estimated Stock Option Expense                    1,900      2,200
    Estimated Gains and (losses), net                     0        150
                                                 ---------- ----------
  Estimated CCF                                  $  197,000 $  207,000
                                                 ========== ==========

Gaylord National
------------------------------------------------
  Estimated Operating income (loss)              $    5,500 $   12,000
    Estimated Depreciation & amortization            19,500     21,500
                                                 ---------- ----------
  Estimated Adjusted EBITDA                      $   25,000 $   33,500
    Estimated Pre-opening costs                      19,800     21,100
    Estimated Stock Option Expense                      200        300
    Estimated Gains and (losses), net                     0        100
                                                 ---------- ----------
  Estimated CCF                                  $   45,000 $   55,000
                                                 ========== ==========

Opry and Attractions segment
------------------------------------------------
  Estimated Operating income (loss)              $    7,700 $    8,250
    Estimated Depreciation & amortization             5,000      5,250
                                                 ---------- ----------
  Estimated Adjusted EBITDA                      $   12,700 $   13,500
    Estimated Stock Option Expense                      300        450
    Estimated Gains and (losses), net                     0         50
                                                 ---------- ----------
  Estimated CCF                                  $   13,000 $   14,000
                                                 ========== ==========

Corporate and Other segment
------------------------------------------------
  Estimated Operating income (loss)               ($61,050)  ($57,200)
    Estimated Depreciation & amortization             7,550      7,000
                                                 ---------- ----------
  Estimated Adjusted EBITDA                       ($53,500)  ($50,200)
    Estimated Stock Option Expense                    4,500      4,000
    Estimated Gains and (losses), net                     0        200
                                                 ---------- ----------
  Estimated CCF                                   ($49,000)  ($46,000)
                                                 ========== ==========

About Gaylord Entertainment

Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with economic conditions affecting the hospitality business generally, the timing of the opening of new hotel facilities, increased costs and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company’s hotels, our ability to successfully operate our hotels and our ability to obtain financing for new developments. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2007. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

1The Company calculates revenue per available room (“RevPAR”) for its hospitality segment by dividing room sales by room nights available to guests for the period.

2The Company calculates total revenue per available room (“Total RevPAR”) by dividing the sum of room sales, food & beverage, and other ancillary services revenue by room nights available to guests for the period.

3Adjusted EBITDA (defined as earnings before interest, taxes, depreciation, amortization, as well as certain unusual items) is a non-GAAP financial measure which is used herein because we believe it allows for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital transactions and without certain items that do not impact our ongoing operations such as the effect of the changes in fair value of the Viacom and CBS stock and changes in the fair value of the derivative associated with the secured forward exchange contract prior to the maturity of the secured forward exchange contract in May 2007 and gains on the sale of assets. In accordance with generally accepted accounting principles, the changes in fair value of the Viacom and CBS stock and derivatives are not included in determining our operating income (loss). The information presented should not be considered as an alternative to any measure of performance as promulgated under accounting principles generally accepted in the United States (such as operating income, net income, or cash from operations), nor should it be considered as an indicator of overall financial performance. Adjusted EBITDA does not fully consider the impact of investing or financing transactions, as it specifically excludes depreciation and interest charges, which should also be considered in the overall evaluation of our results of operations. Our method of calculating Adjusted EBITDA may be different from the method used by other companies and therefore comparability may be limited. A reconciliation of Adjusted EBITDA to net income is presented in the Supplemental Financial Results contained in this press release.

4As discussed in footnote 3 above, Adjusted EBITDA is used herein as essentially operating income plus depreciation and amortization. Consolidated Cash Flow (which is used in this release as that term is defined in the Indentures governing the Company’s 8% and 6.75% senior notes) is a non-GAAP financial measure which also excludes the impact of pre-opening costs, impairment charges, the non-cash portion of the Florida ground lease expense, stock option expense, the non-cash gains and losses on the disposal of certain fixed assets, and adds (subtracts) other gains (losses). The Consolidated Cash Flow measure is one of the principal tools used by management in evaluating the operating performance of the Company’s business and represents the method by which the Indentures calculate whether or not the Company can incur additional indebtedness (for instance in order to incur certain additional indebtedness, Consolidated Cash Flow for the most recent four fiscal quarters as a ratio to debt service must be at least 2 to 1). The calculation of these amounts as well as a reconciliation of those amounts to net income or segment operating income is included as part of the Supplemental Financial Results contained in this press release. CCF Margin is defined as CCF divided by revenue..

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Contact:

Gaylord Entertainment
Investor Relations:
David Kloeppel, 615-316-6101
CFO
dkloeppel@gaylordentertainment.com
 

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Also See: Gaylord National Resort & Convention Center Claims One-millionth Room Sold 10 months Prior to Opening; No other Resort in the History of Hotels Has Sold this Many Rooms So Far Out from Opening / July 2007
Plan to Expand the Gaylord Texan Resort & Convention Center Casting a Bigger Shadow Over Grapevine, Texas Neighbors / February 2008
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