Gaylord Entertainment Company(NYSE: GET),the owner of the center piece development, Gaylord National at the $4 Billion National Harbor project in Prince George's County, Maryland reported positive earnings today.
Revenue for Gaylord Entertainment increased 28% to $236.8 Million in the second quarter ended June 30, 2011 versus a consolidated revenue of $183.9 Million in the same period of 2010. Minus the flagship hotel Gaylord Opryland, revenue decreased to $145.1 Million compared to $151.7 Million in 2010. Gaylord Opryland was out of commission in the second quarter of 2010 due to flooding and had to undergo extensive renovations including a new $12.0 Million flood protection system.
A net income of $8.6 Million in the second quarter of 2011 ($0.18 per basic share) reversed a loss of $22.7 Million ($(0.48) per basic share) in same the quarter of 2010.
Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment, said "We booked over 406,000 gross group room nights in the second quarter, as we continued to stay bullish on group pricing for future periods. This is based on our belief that as the lodging environment strengthens we will be able to secure long-term increases in group rate, which will be more beneficial than compromising on group rate in the short-term. While this philosophy resulted in lower total advance group bookings in the quarter, our sales lead volumes continue to increase, especially in the corporate sector, reinforcing that our strategy is appropriate for the current environment. Two important events occurred during the second quarter. First, we opened our new resort pool at the Gaylord Texan and second, we began selling our DreamWorks Experience offering for the 2011 holiday season, which we anticipate will provide a boost to our leisure bookings and rate for the fourth quarter of this year as well as in future years."
Despite positive results in key areas, financial results specific to Gaylord National came in lower than expected. Revenue decreased 10.3% and occupancy was down 7.3%. Reed said the lower results were not specific to Gaylord National which opened in 2008, but that the overall D.C. area market was being impacted by the threat of lower federal government spending.
Even with the decrease, Gaylord National continued to be the best performing property after the flagship hotel Gaylord Opryland, grossing $59 Million in revenue compared to $45.7 Million at Gaylord Texan and $37.7 Million at Gaylord Palms.
Along with the repositioning of Gaylord National, the new DreamWorks experience being introduced to all Gaylord hotels is expected to help boost revenue. The DreamWorks experience will include characters from movies like Shrek and is geared towards families.
Gaylord National at National Harbor, Maryland is the largest combined non-gaming hotel and convention center on the east coast and the fourth of four Gaylord Hotels, Resorts and Convention Centers properties in the United States. The National Harbor project on the Potomac river is being developed by The Peterson Companies.