Opryland Leads Gaylord Hotels in Cancellations

Of Gaylord Entertainment’s hotels, Opryland has been disproportionately hit by corporate cancellations. The Nashville-based hotel chain reported 2nd quarter results Tuesday.

Opryland has been running at 60% occupancy, driving the revenue per available room down by more than 22%. Gaylord’s new hotel in the D.C.-area actually produced more revenue, but CEO Collin Reed cautions investors that Opryland remains strong.

“We still see a lot of business that wants to book into Opryland. My view is that Opryland will recover into the 70s, and our goal for Opryland over the long term once this economy stabilizes is to get operating at 80 points of occupancy.”

At that point, Reed says the Nashville attraction should be even more profitable than before the recession because of cost cutting measures.

Revenue per available room across Gaylord properties was down 13% compared to the previous year. The hotel chain collected $8.2 million dollars in cancellation fees over the quarter, which helped to offset potential losses.

Due to massive number of corporate cancellations, the company has shifted focus to individual guests. Opryland is even offering $99 rooms to Tennessee residents.