Gaylord posts Q2 loss, ups 2010 RevPAR outlook

NASHVILLE, TENNESSEE Gaylord Entertainment Co. posted a second-quarter loss, due in large part to the closure of its flooded Nashville Opreyland convention hotel, but its outlook for the rest of the year is improved.

Gaylord expects RevPAR to grow 3% to 4.5% for its three properties that remain open, up from its previous forecast of 2% to 4% growth.

Gaylord reports a second-quarter net loss from continuing operation of US$26 million, or 55 cents a share, compared with a profit from continuing operations of US$10.4 million, or 25 cents, last year. RevPAR, adjusted for the closure of the Opryland hotel, rose 5.1% in the quarter.

Nashville Opreyland, closed in May due to significant flooding, is scheduled to reopen in November. The flood will end up costing the company more than US$87 million in damages and lost revenue.

“Our immediate focus has been on rebuilding and reopening our Nashville-area assets following the unprecedented flooding in May,” says Chairman and CEO Colin V. Reed. “The flooding created some extremely significant challenges for our company during the second quarter, but I am proud of how we responded. However, we have not in any way lost focus on our other properties, which continue to generate solid cash flow and to show meaningful improvements in bookings. Our financial results prove that tremendous demand exists for our unique offerings.”

Reed says the continued growth of advance bookings is an encouraging trend for Gaylord and for the hotel industry broadly. “As of June 30th, we have over 4.8 million net advance group room nights on the books for all future periods. During the second quarter, we also booked over 45,000 net advance group room nights at Gaylord Opryland for 2011, roughly 129% more than we booked in the same period last year for 2010. This is a clear sign that our loyal groups of customers are confident that the iconic hotel in Nashville will be back and better than ever,” he says.