Gaylord Looking to Buy Hotels in Foreclosure

So far, each of Gaylord Entertainment’s massive hotel and conference centers have been built from the ground up, but the the Nashville-based company’s future expansions may take a different approach.

Nashville’s Opryland Hotel is Gaylord’s flagship. The company has similar facilities in Florida, Texas, and Maryland, each with huge indoor gardens and conference space large enough to compete with full-scale convention centers. All were built from scratch.

Speaking to potential investors about expansion Wednesday, Chief Financial Officer Mark Fioravanti described a list of about fifty existing hotels that could be adapted to fit the Gaylord brand. Fioravanti says the company is watching to see if any can be bought at a bargain or in foreclosure.

“That’s the opportunity going forward, versus ground up. If you can buy assets at below-replacement cost, you know, why do a ground-up deal?”

Experts are predicting a wave of luxury hotel foreclosures. Earlier this month, an industry magazine held a summit on the topic. And in the past year, several financial firms began marketing specifically to large hotels in danger of going under, with services designed to help decide whether to sell or to try and hold steady.

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Last year, Gaylord announced it would build a fifth hotel in Mesa, Arizona as part of a new urban center. In January, voters approved a measure allowing the project, but the overall development seems to be floundering. Other businesses set to build there have pulled out or postponed. Gaylord put its Arizona plans on hold in August.

The following month, Gaylord executives indicated that the Mesa hotel was still in the works, but said more investors are needed before the company can go forward. Fioravanti did not mention Mesa at all on Wednesday.

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