Gaylord Earnings Down

First quarter earnings were down for Nashville-based Gaylord Entertainment Company. Net income was 3-point-4 million dollars, down from more than 13-million in the same period last year.

Compared to first quarter 2006, the company’s resort hotels in Texas and Florida made more money, but Gaylord Opryland saw a dip in revenue. Company officials say the costs of running the Nashville hotel went up as banquet revenue dropped. A large number of guest rooms were closed due to construction. And in an attempt to revamp its restaurant offerings, Gaylord Opryland paid an almost 3-million dollar penalty for prematurely ending the lease of one tenant business. Meanwhile, a new, partially open hotel in the Washington, DC area increased bookings, but continued construction at that property cost more than 106-million dollars this quarter.

Gaylord expects an influx of cash in coming months from two sales. The company is selling its interest in Bass Pro for 220-million dollars. And it is selling its ResortQuest Hawaii business to Interval Acquisition Corp.