Courtyard by Marriott Kauai; Property Will be Renamed the
ResortQuest Kauai Beach at Makaiwa
NASHVILLE, Tenn. - June 22, 2006 -- Gaylord Entertainment Co. (NYSE: GET) announced today that it has entered into a joint venture with RREEF Global Opportunities Fund II, LLC, a division of Deutsche Bank, and that the joint venture has purchased the Courtyard by Marriott Kauai at Waipouli Beach. The property will be renamed the ResortQuest Kauai Beach at Makaiwa.
Gaylord Entertainment will retain a 19.9 percent equity interest in the joint venture with a total investment in the hotel of approximately $3.8 million. The hotel will be managed under a long-term contract by ResortQuest, the nation's leading vacation rental property management company, which is owned by Gaylord Entertainment.
"This beautiful hotel will be an outstanding addition to ResortQuest's portfolio," said Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment. "This transaction provides significant value for our shareholders and is the perfect complement to the company's strategy of investing in high-profile vacation destinations while securing long-term management contracts."
The addition of the ResortQuest Kauai Beach at Makaiwa, the company's fifth property on the Garden Isle, increases ResortQuest's presence in Hawaii to 28 hotels and condominium resorts on the islands of Oahu, Maui, Kauai and Hawaii. The operations of the hotel are expected to continue without disruption and the company expects a seamless transition for guests, travel agents and business partners.
The oceanfront hotel just completed an approximately $20 million renovation, which included a complete refurbishment of all guest rooms and public areas. Resort amenities include an award winning 350-seat luau operated by Tihati Productions, a 270-seat restaurant, a 90-seat open air lounge, two quick-service food and beverage outlets, two meeting rooms with 4,700 square feet of meeting space, a business center, the Pua Day Spa, a gift shop, an oceanfront pool and whirlpool, a fitness center, a tennis court facility, and jogging paths.
"The newly renovated ResortQuest Kauai Beach at Makaiwa hotel complements our four other Kauai properties and is a welcome addition to the ResortQuest Ohana," said Kelvin Bloom, regional vice president for ResortQuest. "I am proud of our employees and want to thank them for the work they've done and continue to do during this transition."
The transaction marks the companies' second joint purchase of a Hawaii property in the past year. In 2005, Gaylord purchased the Aston Waikiki Beach Hotel, now ResortQuest Waikiki Beach Hotel.
About Gaylord Entertainment
|Also See:||Gail Harding Named Assistant Director of Marketing for ResortQuest Hawaii Portfolio of 28 Properties / January 2006|
|New Management Turns Gaylord Entertainment into Hospitality Industry Giant / March 2004|