UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

GAYLORD ENTERTAINMENT COMPANY

(Exact name of registrant as specified in its charter)

Delaware		1-13079		73-0664379
(State or other jurisdiction of incorporation)		(Commission File Number)		(I.R.S. Employer Identification No.)

One Gaylord Drive
Nashville, Tennessee		37214
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (615) 316-6000

(Former name or former address, if changed since last report)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

     On February 8, 2011, Gaylord Entertainment Company issued a press release announcing its financial results for the quarter and year ended December 31, 2010. A copy of the press release is furnished herewith as Exhibit 99.1.

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS.

     (d) Exhibits

99.1

Press Release of Gaylord Entertainment Company dated February 8, 2011

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

INDEX TO EXHIBITS

99.1

Press Release of Gaylord Entertainment Company dated February 8, 2011

Exhibit 99.1

GAYLORD ENTERTAINMENT COMPANY REPORTS FOURTH QUARTER AND FULL
YEAR 2010 RESULTS

– Gaylord Opryland successfully reopens within timeline and budget —

– Adjusted Gaylord Hotels Total RevPAR (excluding Gaylord Opryland, but including the Radisson)

increased 8.7 percent in the Fourth Quarter of 2010 —

— Advance group bookings remain strong —

NASHVILLE, Tenn. (February 8, 2011) — Gaylord Entertainment Co. (NYSE: GET) today reported its financial results for the fourth quarter and full year ended December 31, 2010. Highlights from the fourth quarter and full year ended December 31, 2010 include:

	•		Consolidated revenue decreased 13.5 percent to $213.3 million in the fourth quarter of 2010 from $246.6 million in the same period last year, and included the impact of the temporary closure of Gaylord Opryland and the closure’s impact on certain of the Company’s other Nashville-based assets due to the flood damage suffered on May 3, 2010. For the full year 2010, consolidated revenue decreased 11.8 percent to $770.0 million from $872.8 million in the prior year. Adjusted Gaylord Hotels total revenue (which excludes Gaylord Opryland, but includes the Radisson) increased 8.7 percent to $161.2 million in the fourth quarter of 2010 compared to $148.3 million in the prior-year quarter. For the full year 2010, Adjusted Gaylord Hotels total revenue increased 7.3 percent to $608.8 million.
	•		Adjusted Gaylord Hotels revenue per available room1 (“RevPAR”) increased 0.5 percent and Adjusted Gaylord Hotels total revenue per available room2 (“Total RevPAR”) increased 8.7 percent in the fourth quarter of 2010 compared to the fourth quarter of 2009. For the full year 2010, Adjusted Gaylord Hotels RevPAR and Total RevPAR increased 3.9 percent and 7.3 percent, respectively, compared to 2009. Adjusted Gaylord Hotels Total RevPAR for the fourth quarter of 2010 included attrition and cancellation fees of $2.0 million collected during the quarter compared to $4.3 million collected in the prior-year quarter. For the full year 2010,

			Adjusted Gaylord Hotels attrition and cancellation fee collections totaled $8.4 million compared to $20.6 million in the prior year.
	•		Loss from continuing operations was $32.5 million, or a loss of $0.68 per diluted share (based on 47.7 million weighted average shares outstanding) in the fourth quarter of 2010 compared to a loss from continuing operations of $0.5 million, or a loss of $0.01 per diluted share, in the prior-year quarter (based on 47.0 million weighted average shares outstanding). For the full year 2010, loss from continuing operations was $92.2 million, or $1.95 per diluted share (based on 47.3 million weighted average shares outstanding), compared to income from continuing operations of $7.1 million in the full year 2009, or $0.17 per diluted share (based on 42.7 million weighted average shares outstanding). Loss from continuing operations in the fourth quarter of 2010 included $5.0 million in pre-tax casualty loss expenses associated with the flood damage at the Company’s Nashville properties, as well as $23.6 million in preopening costs associated with efforts to reopen the Nashville properties. Loss from continuing operations for the full year 2010 included $42.3 million in pre-tax casualty loss expenses and $55.3 million in preopening costs. Casualty loss and preopening costs have been segregated from the normal operating costs of the Company and presented separately in the accompanying financial information. Loss from continuing operations in the fourth quarter of 2009 included a pre-tax $6.0 million loss on the purchase and redemption of portions of the Company’s senior notes. Income from continuing operations for full year 2009 included a pre-tax $18.7 million gain on the purchase and redemption of portions of the Company’s senior notes and a $3.6 million payment received in connection with a tax increment financing (“TIF”) arrangement related to the Ryman Auditorium, partially offset by $7.9 million in pre-tax severance costs associated with the Company’s cost-containment initiatives.
	•		Adjusted EBITDA3, which includes casualty loss and preopening costs, was a loss of $0.3 million in the fourth quarter of 2010 compared to income of $52.0 million in the prior-year quarter. For the full year 2010, Adjusted EBITDA was $39.6 million compared to $173.4 million in the prior year.
	•		Consolidated Cash Flow4 (“CCF”) decreased 49.1 percent to $27.6 million in the fourth quarter of 2010 compared to $54.1 million in the same period last year. CCF for the full year 2010 decreased by 21.8 percent from 2009 to $149.0 million. CCF for the 2010 year included approximately $2.8 million in expense associated with amendments to certain executives’ restricted stock unit agreements. CCF for the full year 2009 included $7.4 million in severance costs, partially offset by a $3.6 million gain under the Ryman TIF arrangement.

•

Gaylord Hotels (including Gaylord Opryland) gross advance group bookings in the fourth quarter of 2010 for all future periods were 772,845 room nights, an increase of 4.6 percent when compared to the same period last year. Net of attrition and cancellations, advance bookings in the fourth quarter of 2010 for all future periods were 639,567 room nights, an increase of 41.2 percent when compared to the same period last year.

Colin V. Reed, chairman and chief executive officer of Gaylord Entertainment, stated, “2010 was unlike any other year we have managed through, but we ended the year in a very good position posting good growth in Adjusted Gaylord Hotels RevPAR, Total RevPAR and CCF. Our results were especially noteworthy given our prior year performance relative to our peers which created a more challenging comparison. In addition, we successfully overcame the challenges presented by the Nashville flood and reopened Gaylord Opryland on time and within our original budget. The reopening was met with rave customer reviews and drove extraordinarily high levels of customer traffic in the weeks that followed, which was handled efficiently and professionally by our wonderful STARS.

“Advance bookings in the fourth quarter were especially encouraging as our brand booked just over 772,000 gross advance room nights, an increase over a standout fourth quarter last year. For the full year, we booked over 2.2 million gross advance room nights for all future periods and we closed the year with over 5.1 million net room nights booked for all future years. We are confident that our business is well positioned for the future.”

Segment Operating Results

Hospitality

Key components of the Company’s hospitality segment performance in the fourth quarter and full year of 2010 include:

	•		Adjusted Gaylord Hotels RevPAR increased 0.5 percent to $114.95 in the fourth quarter of 2010 compared to $114.34 in the prior-year quarter. Adjusted Gaylord Hotels Total RevPAR increased 8.7 percent to $335.90 in the fourth quarter compared to $309.12 in the prior-year quarter. Adjusted Gaylord Hotels RevPAR increased 3.9 percent to $122.24 for the full year of 2010 compared to $117.68 for the full year of 2009. Adjusted Gaylord Hotels Total RevPAR increased 7.3 percent to $319.76 for the full year of 2010 compared to $297.89 for the full year of 2009.
	•		Adjusted Gaylord Hotels CCF increased 2.6 percent in the fourth quarter to $37.3 million compared to $36.3 million in the prior-year quarter. Adjusted Gaylord Hotels CCF Margin4 decreased 140 basis points to 23.1 percent in the fourth quarter of 2010 compared to 24.5 percent

			for the same period last year. Adjusted Gaylord Hotels CCF increased 5.6 percent for the full year of 2010 to $166.9 million compared to $158.0 million for the full year of 2009. Adjusted Gaylord Hotels CCF Margin decreased 50 basis points to 27.4 percent for the full year of 2010 compared to 27.9 percent for the full year of 2009.
	•		Adjusted Gaylord Hotels attrition that occurred for groups that traveled in the fourth quarter of 2010 was 11.9 percent of the agreed-upon room block compared to 14.7 percent for the same period in 2009. Adjusted Gaylord Hotels in-the-year for-the-year cancellations in the fourth quarter of 2010 totaled 2,603 room nights compared to 5,256 in the same period of 2009. Adjusted Gaylord Hotels attrition and cancellation fee collections totaled $2.0 million in the fourth quarter of 2010 compared to $4.3 million for the same period in 2009. Adjusted Gaylord Hotels attrition that occurred for groups that traveled in the full year of 2010 was 11.9 percent of the agreed-upon room block compared to 16.9 percent for the full year of 2009. Adjusted Gaylord Hotels in-the-year for-the-year cancellations for the full year of 2010 totaled 41,637 room nights compared to 82,986 for the full year of 2009. Adjusted Gaylord Hotels attrition and cancellation fee collections totaled $8.4 million for the full year of 2010 compared to $20.6 million for the full year of 2009. Total Gaylord Hotels, including Gaylord Opryland, collected $9.4 million in attrition and cancellation fees in 2010 compared to $27.7 million in 2009.

At the property level, Gaylord Palms posted revenue of $41.0 million in the fourth quarter of 2010, a 1.8 percent decrease compared to $41.7 million in the prior-year quarter, driven primarily by a 13.7 percent decrease in Average Daily Rate (“ADR”) and a $1.2 million decrease in attrition and cancellation revenue. Full year 2010 revenue of $156.4 million represented a 0.5 percent decrease compared to $157.2 million in 2009. Occupancy for the fourth quarter increased 10.6 percentage points largely driven by an increase in group business. Occupancy for the full year of 2010 was up 7.0 percentage points compared to the full year 2009. ADR declined 13.7 percent compared to the fourth quarter of 2009, as rates in the Orlando market remained under pressure. ADR for the full year of 2010 declined 11.0 percent compared to the full year of 2009. Fourth quarter 2010 RevPAR decreased 0.3 percent to $115.09 compared to $115.47 in the prior-year quarter, as the increase in occupancy was offset by the decline in rate. Full year 2010 RevPAR decreased 1.7 percent to $116.00 compared to $118.01 in the full year of 2009. Total RevPAR in the fourth quarter of 2010 decreased 1.8 percent to $316.68 compared to $322.50 in the prior-year quarter. In the full year of 2010, Total RevPAR decreased 0.5 percent to $304.75 compared to $306.34 in the full year of 2009. CCF in the fourth quarter of 2010 decreased to $8.7 million compared to $11.1 million in the prior-year quarter, resulting in a CCF Margin of 21.2 percent, a 550 basis point decrease compared to 26.7 percent in the prior-year quarter, driven by the decline in ADR and attrition

and cancellation revenue. For the full year, CCF decreased 9.7 percent to $40.4 million compared to $44.7 million in 2009, resulting in a CCF Margin of 25.8 percent, a 260 basis point decrease compared to 28.4 percent in the full year of 2009.

Gaylord Texan revenue was $55.8 million in the fourth quarter of 2010, an increase of 16.5 percent from $47.9 million in the prior-year quarter, driven by increases in transient and group ADR, occupancy, and outside-the-room revenue. For the full year, revenue increased 12.2 percent to $192.2 million from $171.4 million. Occupancy for the fourth quarter of 2010 increased by 3.2 percentage points compared to the fourth quarter of 2009, and for the full year was up 6.1 percentage points. RevPAR in the fourth quarter of 2010 increased 11.2 percent to $121.61 compared to $109.37 in the prior-year quarter due to the increase in ADR and occupancy. Total RevPAR increased 16.5 percent in the fourth quarter of 2010 to $401.30 compared to $344.48 in the prior-year quarter, driven by the increase in ADR, occupancy, and food and beverage revenue. RevPAR in the full year of 2010 increased 8.9 percent to $119.27 when compared to $109.49 in the prior full year due to the increase in occupancy. Total RevPAR increased 12.1 percent in the full year of 2010 to $348.46 compared to $310.74 in the prior year, driven by an increase in occupancy and food and beverage revenue. CCF increased 19.4 percent to $17.9 million in the fourth quarter of 2010, versus $15.0 million in the prior-year quarter, resulting in a 32.0 percent CCF Margin, a 70 basis point increase over the prior-year quarter. Full year CCF increased 23.0 percent to $63.0 million versus $51.3 million in the prior year, resulting in a 32.8 percent CCF Margin, a 290 basis point increase over the prior year.

Gaylord National generated revenue of $62.7 million in the fourth quarter of 2010, a 10.5 percent increase when compared to the prior-year quarter of $56.8 million, due to an increase in occupancy and outside-the-room spending. Revenue for the full year of 2010 was $254.1 million as compared to $231.3 million for the full year 2009. Occupancy for the fourth quarter of 2010 was up 4.4 percentage points to 65.6 percent when compared to 61.2 percent in the prior-year quarter, driven by an increase in group and transient rooms. RevPAR in the fourth quarter of 2010 decreased 4.7 percent to $119.77 when compared to $125.64 in the prior-year quarter, driven by a decline in ADR. Total RevPAR increased 10.5 percent to $341.57 in the fourth quarter of 2010 when compared to $309.06 in the prior-year quarter. Total RevPAR in the fourth quarter of 2010 was driven by increases in group banquet spending and by increased volume at our holiday attractions. RevPAR in the full year 2010 increased 5.7 percent to $140.69 when compared to $133.16 in the prior full year. Total RevPAR increased 9.8 percent in the full year of 2010 to $348.80 compared to $317.54 in the prior year. CCF increased 6.3 percent to $10.3 million in the fourth quarter of 2010 when compared to $9.7 million in the prior-year quarter. CCF in the fourth quarter of 2010 included

$0.5 million in severance expense compared to $0.1 million in the prior-year quarter. CCF Margin decreased 60 basis points to 16.4 percent in the fourth quarter when compared to 17.0 percent in the prior-year quarter. In addition to the impact of severance expense, CCF margin was also impacted by labor expense incurred from union contracts which were not a factor in the fourth quarter of 2009. Full year CCF increased 3.5 percent to $62.3 million versus $60.3 million in the prior year, resulting in a 24.5 percent CCF Margin, a 150 basis point decrease from the prior year.

The results for Gaylord Opryland for the fourth quarter and the full year include only the periods during which the property was open and do not include the temporary closure from May 3 through November 14 due to the flood. Gaylord Opryland generated revenue of $37.7 million in the fourth quarter of 2010, a 54.5 percent decrease compared to $82.7 million in the prior-year quarter. Full year 2010 revenue of $113.3 million represented a 54.1 percent decrease compared to $247.1 million in 2009. Occupancy for the quarter decreased 12.1 percentage points compared to the prior-year quarter and decreased 1.1 percentage points for the full year, due to effects from the temporary closure of the property due to flood-related damage. Fourth quarter RevPAR decreased 19.1 percent to $94.43 compared to $116.72 in the same period last year. Total RevPAR decreased 10.9 percent to $278.36 in the fourth quarter of 2010 compared to $312.30 in the prior-year quarter. For the full year 2010, RevPAR decreased 5.3 percent to $94.41 and Total RevPAR was approximately flat at $234.27. CCF decreased 90.1 percent to $2.5 million for the fourth quarter, versus $25.3 million in the prior-year quarter. For the quarter, CCF margin decreased 2,390 basis points over the prior-year quarter to 6.7 percent, largely due to the reopening and the inaugural year of a new holiday attraction. Full year 2010 CCF decreased 65.8 percent to $21.4 million, primarily due to the flood. CCF margin for the year was 18.9 percent, a decline of 640 basis points compared to 25.3 percent for the full year of 2009. The decrease in revenue and CCF was due to the property being closed from May 3 through November 14, 2010 due to flood-related damage.

Reed continued, “The successful reopening of the Gaylord Opryland was an exceptional event for our company, our customers, and the city of Nashville. I am proud of the efforts put forth by our STARS and we have seen their hard work translate into increased advance room night bookings. As a result, the property is entering 2011 well positioned for a strong year.”

Opry and Attractions

Opry and Attractions segment revenue decreased 8.8 percent to $14.2 million in the fourth quarter of 2010, compared to $15.6 million in the year-ago quarter. For the full year, revenue decreased to $46.9 million as compared to $58.6 million for the prior year. The segment’s CCF decreased to $2.2 million in the fourth

quarter of 2010 from $3.4 million in the prior-year quarter. For the full year of 2010, the segment’s CCF decreased to $6.1 million from $13.6 million in the prior year. Opry and Attractions revenue and CCF in the fourth quarter and full year of 2010 was impacted by the flood damage and temporary closure of certain of Gaylord’s Nashville assets, and a reduction in visitor volume due to the closure of Gaylord Opryland. Full year 2009 CCF was impacted by a $3.6 million gain recorded from the TIF payment related to the Ryman Auditorium.

Corporate and Other

Corporate and Other operating loss totaled $15.3 million in the fourth quarter of 2010 compared to an operating loss of $14.9 million in the same period last year. For the full year, the segment reported an operating loss of $61.3 million compared to an operating loss of $60.4 million in the prior year. Corporate and Other CCF in the fourth quarter of 2010 declined $1.1 million to a loss of $12.5 million compared to a loss of $11.4 million in the same period last year. For the full year, CCF decreased 12.8 percent to a loss of $49.6 million compared to a loss of $44.0 million in 2009. CCF for the 2010 year included approximately $2.8 million in expense associated with amendments to certain executives’ restricted stock unit agreements. CCF for the full year 2009 included $3.6 million in severance costs and $1.9 million in costs associated with the resolution of a potential proxy contest.

Casualty Loss

Casualty loss expense as a result of the flooding totaled $5.0 million for the fourth quarter of 2010 and $92.3 million for the full year of 2010. The full year 2010 impact was partially offset by $50.0 million in insurance proceeds. The $5.0 million amount included $2.2 million in non-cash impairment expense related to the write-off of flood-damaged assets. Casualty loss CCF in the fourth quarter of 2010 was a loss of $2.7 million and for the full year of 2010 was a gain of $2.9 million. The CCF impact of the casualty loss was favorable for the full year of 2010, as the calculation of CCF excludes non-cash impairment expense and preopening expense and includes the impact of insurance claim proceeds. For the full year, expenses included $45.0 million in non-cash impairment charges, $19.4 million in site remediation, $4.8 million in non-capitalized repairs, $3.7 million of other flood-related casualty losses and $19.4 million of continuing costs related to the flood-impacted businesses, partially offset by $50.0 million in insurance proceeds. The total repair and remediation costs at the Company’s Nashville properties in 2010 came in at the low end of the projected $215.0 million to $225.0 million range, and preopening costs at the Gaylord Opryland came in under the projected $57.0 to $62.0 million range. While several flood-related projects remain to be completed in 2011, the Company anticipates

that net of tax refunds, insurance proceeds, and the cost of projects slated for the property prior to the flood, the net cash impact of the flood will be approximately $150 million.

The Company has determined it will move forward with a $12.0 million enhancement to its existing Nashville flood protection system in an effort to provide 500-year flood protection for the Gaylord Opryland Hotel. The Company has worked with engineers to design the enhancements to be aesthetically pleasing and sensitive to adjacent property owners. The project will commence in the spring of 2011 and should be complete in the spring of 2012.

Development Update

Gaylord Entertainment’s planned resort and convention hotel in Mesa, Arizona remains in the very early stages of planning, and specific details of the property and budget have not yet been determined. The Company anticipates that any expenditure associated with the project will not have a material financial impact in the near-term. With Gaylord Opryland now reopen, the Company is increasing its efforts to identify and evaluate opportunities for new unit growth.

Liquidity

As of December 31, 2010, the Company had long-term debt outstanding, including current portion, of $1,159.2 million and unrestricted cash of $124.4 million. At the end of 2010, $300.0 million of borrowings were undrawn under the Company’s $1.0 billion credit facility, and the lending banks had issued $8.6 million in letters of credit, which left $291.4 million of availability under the credit facility.

Outlook

The following business performance outlook is based on current information as of February 8, 2011. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.

Reed concluded, “We remain confident that we are well positioned for 2011, and the increases we have seen in outside-the-room spending, advance bookings, future rate on the books, and occupancy all support our positive outlook. We believe that 2011 will be an exciting time for our business as we anticipate that the hospitality environment will continue to improve.

“Given our performance thus far and the room nights we have secured for 2011, we are reiterating our consolidated 2011 guidance for Adjusted Gaylord Hotels (which excludes Gaylord Opryland, but includes the Radisson) as a RevPAR increase of 7.5 to 9.5 percent and a Total RevPAR increase of 6.5 to 8.5 percent year-over-year. We are reiterating 2011 guidance for Gaylord Opryland as a RevPAR increase of 13.0 to 15.0 percent and a Total RevPAR increase of 9.0 to 11.0 percent year-over-year. It is important to note that the RevPAR and Total RevPAR growth guidance for Gaylord Opryland is based on a partial year of operation in 2010 due to the flooding in May. Shifting to CCF guidance, as occupancy levels have continued to rise, we have been successful in prudently managing our costs and driving solid profitability margins. Based on our performance, we are reiterating full year 2011 CCF guidance for Adjusted Gaylord Hotels (which excludes Gaylord Opryland, but includes the Radisson) of $178-$185 million. This includes the impact of a rooms renovation at Gaylord Palms which will result in approximately 39,900 room nights being out of service for 2011. For Gaylord Opryland we are reiterating 2011 CCF guidance of $73-$77 million. Our 2011 CCF guidance for Opry and Attractions is $12-$14 million and Corporate & Other guidance for CCF in 2011 is a loss of $(48)-$(46) million.”

		Full Year
		2011 Guidance
Consolidated Cash Flow
Adjusted Gaylord Hotels		$178 – 185 Million
Gaylord Opryland		$73 – 77 Million
Opry and Attractions		$12 – 14 Million
Corporate and Other		$(48 – 46) Million
Totals		$215 – 230 Million
Adjusted Gaylord Hotels RevPAR			7.5% - 9.5	%
Adjusted Gaylord Hotels Total RevPAR			6.5% - 8.5	%
Gaylord Opryland RevPAR			13.0% - 15.0	%
Gaylord Opryland Total RevPAR			9.0% - 11.0	%

Note: Adjusted Gaylord Hotels in the guidance table above excludes Gaylord Opryland, but includes the Radisson; additionally, the guidance above assumes 39,900 room nights out of service in 2011 due to the renovation of rooms at Gaylord Palms and 14,240 room nights out of service in 2011 due to the renovation of rooms at the Radisson located in Nashville.

Webcast and Replay

Gaylord Entertainment will hold a conference call to discuss this release today at 10:00 a.m. ET. Investors can listen to the conference call over the Internet at www.gaylordentertainment.com. To listen to the live call, please go to the Investor Relations section of the website (Investor Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to the call to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and will run for at least 30 days.

About Gaylord Entertainment

Gaylord Entertainment (NYSE: GET), a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music’s finest performers for more than 80 consecutive years. The Company’s entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Gaylord Springs Golf Links, Wildhorse Saloon, and WSM-AM. For more information about the Company, visit www.GaylordEntertainment.com.

This press release contains statements as to the Company’s beliefs and expectations of the outcome of future events that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include the risks and uncertainties associated with the flood damage to Gaylord Opryland and our other Nashville-area Gaylord facilities, which include significant revenue losses and costs associated with the hotel closure and the rebuilding effort, which, in the aggregate, exceeded the coverage under the Company’s insurance policies; risks inherent in the construction process; effects of the hotel closure including the possible loss of experienced employees, the loss of customer goodwill, uncertainty of future hotel bookings and other negative factors yet to be determined, and risks associated with compliance with the Company’s $1.0 billion credit facility; economic conditions affecting the hospitality business generally, rising labor and benefits costs, the timing of any new development projects, increased costs and other risks associated with building and developing new hotel facilities, the geographic concentration of our hotel properties, business levels at the Company’s hotels, our ability to successfully operate our hotels and our ability to obtain financing for new developments. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission and include the risk factors described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and our Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2010,

June 30, 2010 and September 30, 2010. The Company does not undertake any obligation to release publicly any revisions to forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.

Investor Relations Contacts:		Media Contacts:
Mark Fioravanti, Senior Vice President and Chief Financial Officer		Brian Abrahamson, Vice President of Corporate Communications
Gaylord Entertainment		Gaylord Entertainment
615-316-6588		(615) 316-6302
mfioravanti@gaylordentertainment.com		babrahamson@gaylordentertainment.com
~or~		~or~
Patrick Chaffin, Vice President of Strategic Planning and Investor Relations		Josh Hochberg or Dan Zacchei
Gaylord Entertainment		Sloane & Company
615-316-6282		(212) 446-1892 or (212) 446-1882
pchaffin@gaylordentertainment.com		jhochberg@sloanepr.com          or
		dzacchei@sloanepr.com

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

Unaudited

(In thousands, except per share data)

		Three Months Ended								Twelve Months Ended
		Dec. 31,								Dec. 31,
		2010				2009				2010				2009
Revenues		$	213,329			$	246,592			$	769,961			$	872,845
Operating expenses:
Operating costs			140,810				149,240				474,609				527,074
Selling, general and administrative (a)			44,331				45,334				158,169				172,361
Casualty loss			4,960				—				42,321				—
Preopening costs			23,573				—				55,287				—
Depreciation and amortization			27,285				30,383				105,561				116,567
Operating (loss) income			(27,630	)			21,635				(65,986	)			56,843
Interest expense, net of amounts capitalized			(20,497	)			(21,087	)			(81,426	)			(76,592	)
Interest income			3,272				3,676				13,124				15,087
Income (loss) from unconsolidated companies			491				(152	)			608				(5	)
Net (loss) gain on extinguishment of debt			—				(6,049	)			1,299				18,677
Other gains and (losses), net			(752	)			(573	)			(535	)			2,847
(Loss) income before income taxes			(45,116	)			(2,550	)			(132,916	)			16,857
(Benefit) provision for income taxes			(12,593	)			(2,015	)			(40,718	)			9,743
(Loss) income from continuing operations			(32,523	)			(535	)			(92,198	)			7,114
(Loss) income from discontinued operations, net of taxes			(255	)			(65	)			3,070				(7,137	)
Net loss		$	(32,778	)		$	(600	)		$	(89,128	)		$	(23	)
Basic net loss per share:
(Loss) income from continuing operations		$	(0.68	)		$	(0.01	)		$	(1.95	)		$	0.17
(Loss) income from discontinued operations, net of taxes			(0.01	)			—				0.06				(0.17	)
Net loss		$	(0.69	)		$	(0.01	)		$	(1.89	)		$	(0.00	)
Fully diluted net loss per share:
(Loss) income from continuing operations		$	(0.68	)		$	(0.01	)		$	(1.95	)		$	0.17
(Loss) income from discontinued operations, net of taxes			(0.01	)			—				0.06				(0.17	)
Net loss		$	(0.69	)		$	(0.01	)		$	(1.89	)		$	(0.00	)
Weighted average common shares for the period (b):
Basic			47,736				46,975				47,256				42,490
Fully-diluted			47,736				46,975				47,256				42,734

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

Unaudited

(In thousands)

		Dec. 31,				Dec. 31,
		2010				2009
ASSETS
Current assets:
Cash and cash equivalents — unrestricted		$	124,398			$	180,029
Cash and cash equivalents — restricted			1,150				1,150
Trade receivables, net			31,793				39,864
Income tax receivable			2,395				28,796
Estimated fair value of derivative assets			22				—
Deferred income taxes			6,495				2,525
Other current assets			46,597				50,768
Current assets of discontinued operations			—				2,444
Total current assets			212,850				305,576
Property and equipment, net of accumulated depreciation			2,201,445				2,149,782
Notes receivable, net of current portion			142,651				142,311
Long-term deferred financing costs			12,521				18,081
Other long-term assets			51,065				44,858
Long-term assets of discontinued operations			401				415
Total assets		$	2,620,933			$	2,661,023
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt and capital lease obligations (a)		$	58,574			$	1,814
Accounts payable and accrued liabilities			175,343				148,660
Estimated fair value of derivative liabilities			12,475				—
Current liabilities of discontinued operations			357				3,872
Total current liabilities			246,749				154,346
Long-term debt and capital lease obligations, net of current portion			1,100,641				1,176,874
Deferred income taxes			101,140				100,590
Estimated fair value of derivative liabilities			—				25,661
Other long-term liabilities			142,200				124,377
Long-term liabilities of discontinued operations			451				491
Stockholders’ equity			1,029,752				1,078,684
Total liabilities and stockholders’ equity		$	2,620,933			$	2,661,023

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and Consolidated Cash Flow (“CCF”) reconciliation:

		Three Months Ended Dec. 31,																Twelve Months Ended Dec. 31,
		2010								2009								2010								2009
		$				Margin				$				Margin				$				Margin				$				Margin
Consolidated
Revenue		$	213,329				100.0	%		$	246,592				100.0	%		$	769,961				100.0	%		$	872,845				100.0	%
Net loss		$	(32,778	)			-15.4	%		$	(600	)			-0.2	%		$	(89,128	)			-11.6	%		$	(23	)			0.0	%
Loss (income) from discontinued operations, net of taxes			255				0.1	%			65				0.0	%			(3,070	)			-0.4	%			7,137				0.8	%
(Benefit) provision for income taxes			(12,593	)			-5.9	%			(2,015	)			-0.8	%			(40,718	)			-5.3	%			9,743				1.1	%
Other (gains) and losses, net			752				0.4	%			573				0.2	%			535				0.1	%			(2,847	)			-0.3	%
Net loss (gain) on extinguishment of debt			—				0.0	%			6,049				2.5	%			(1,299	)			-0.2	%			(18,677	)			-2.1	%
(Income) loss from unconsolidated companies			(491	)			-0.2	%			152				0.1	%			(608	)			-0.1	%			5				0.0	%
Interest expense, net			17,225				8.1	%			17,411				7.1	%			68,302				8.9	%			61,505				7.0	%
Operating (loss) income			(27,630	)			-13.0	%			21,635				8.8	%			(65,986	)			-8.6	%			56,843				6.5	%
Depreciation & amortization			27,285				12.8	%			30,383				12.3	%			105,561				13.7	%			116,567				13.4	%
Adjusted EBITDA			(345	)			-0.2	%			52,018				21.1	%			39,575				5.1	%			173,410				19.9	%
Preopening costs			23,573				11.1	%			—				0.0	%			55,287				7.2	%			—				0.0	%
Impairment charges			2,237				1.0	%			—				0.0	%			44,970				5.8	%			—				0.0	%
Other non-cash expenses			1,479				0.7	%			1,503				0.6	%			5,917				0.8	%			6,017				0.7	%
Stock option expense			619				0.3	%			601				0.2	%			2,738				0.4	%			7,595				0.9	%
Other gains and (losses), net			(752	)			-0.4	%			(573	)			-0.2	%			(535	)			-0.1	%			2,847				0.3	%
Loss on sales of assets			752				0.4	%			574				0.2	%			1,091				0.1	%			713				0.1	%
CCF		$	27,563				12.9	%		$	54,123				21.9	%		$	149,043				19.4	%		$	190,582				21.8	%
Adjusted Hospitality segment (excludes Gaylord Opryland and Other, includes Nashville Radisson) (a)
Revenue		$	161,190				100.0	%		$	148,339				100.0	%		$	608,772				100.0	%		$	567,140				100.0	%
Operating income			18,702				11.6	%			14,986				10.1	%			92,238				15.2	%			74,681				13.2	%
Depreciation & amortization			16,951				10.5	%			19,663				13.3	%			67,950				11.2	%			76,484				13.5	%
Other non-cash expenses			1,479				0.9	%			1,503				1.0	%			5,917				1.0	%			6,017				1.1	%
Stock option expense			135				0.1	%			184				0.1	%			797				0.1	%			913				0.2	%
Other gains and (losses), net			(124	)			-0.1	%			(222	)			-0.1	%			(371	)			-0.1	%			(371	)			-0.1	%
Loss on sales of assets			124				0.1	%			222				0.1	%			371				0.1	%			264				0.0	%
CCF		$	37,267				23.1	%		$	36,336				24.5	%		$	166,902				27.4	%		$	157,988				27.9	%
Gaylord Palms, Texan and National (excludes Gaylord Opryland, Nashville Radisson and Other) (a)
Revenue		$	159,470				100.0	%		$	146,356				100.0	%		$	602,694				100.0	%		$	559,907				100.0	%
Operating income			18,419				11.6	%			14,591				10.0	%			91,707				15.2	%			73,580				13.1	%
Depreciation & amortization			16,798				10.5	%			19,490				13.3	%			67,327				11.2	%			75,822				13.5	%
Other non-cash expenses			1,479				0.9	%			1,503				1.0	%			5,917				1.0	%			6,017				1.1	%
Stock option expense			135				0.1	%			184				0.1	%			797				0.1	%			913				0.2	%
Other gains and (losses), net			(124	)			-0.1	%			(221	)			-0.2	%			(371	)			-0.1	%			(370	)			-0.1	%
Loss on sales of assets			124				0.1	%			222				0.2	%			371				0.1	%			264				0.0	%
CCF		$	36,831				23.1	%		$	35,769				24.4	%		$	165,748				27.5	%		$	156,226				27.9	%
Gaylord Opryland (a)
Revenue		$	37,666				100.0	%		$	82,719				100.0	%		$	113,308				100.0	%		$	247,053				100.0	%
Operating (loss) income			(27,800	)			-73.8	%			18,875				22.8	%			(55,298	)			-48.8	%			37,304				15.1	%
Depreciation & amortization			6,636				17.6	%			6,307				7.6	%			23,039				20.3	%			24,658				10.0	%
Preopening costs			23,614				62.7	%			—				0.0	%			53,445				47.2	%			—				0.0	%
Stock option expense			62				0.2	%			104				0.1	%			216				0.2	%			553				0.2	%
Other gains and (losses), net			(562	)			-1.5	%			1				0.0	%			(568	)			-0.5	%			1				0.0	%
Loss (gain) on sales of assets			562				1.5	%			(1	)			0.0	%			568				0.5	%			(1	)			0.0	%
CCF		$	2,512				6.7	%		$	25,286				30.6	%		$	21,402				18.9	%		$	62,515				25.3	%
Other Hospitality (a)
Revenue		$	233				100.0	%		$	(77	)			100.0	%		$	858				100.0	%		$	(39	)			100.0	%
Operating income			895				384.1	%			459				-596.1	%			1,373				160.0	%			186				-476.9	%
Depreciation & amortization			2				0.9	%			60				-77.9	%			128				14.9	%			302				-774.4	%
Preopening costs			(53	)			-22.7	%			—				0.0	%			(53	)			-6.2	%			—				0.0	%
Other gains and (losses), net			—				0.0	%			(300	)			389.6	%			—				0.0	%			(354	)			907.7	%
Loss on sales of assets			—				0.0	%			300				-389.6	%			—				0.0	%			354				-907.7	%
CCF		$	844				362.2	%		$	519				-674.0	%		$	1,448				168.8	%		$	488				-1251.3	%
Opry and Attractions segment (a)
Revenue		$	14,216				100.0	%		$	15,589				100.0	%		$	46,918				100.0	%		$	58,599				100.0	%
Operating income (loss)			879				6.2	%			2,187				14.0	%			(658	)			-1.4	%			5,050				8.6	%
Depreciation & amortization			1,271				8.9	%			1,180				7.6	%			4,710				10.0	%			4,674				8.0	%
Preopening costs			12				0.1	%			—				0.0	%			1,895				4.0	%			—				0.0	%
Stock option expense			38				0.3	%			49				0.3	%			110				0.2	%			239				0.4	%
Other gains and (losses), net			(67	)			-0.5	%			—				0.0	%			(99	)			-0.2	%			3,613				6.2	%
Loss (gain) on sales of assets			67				0.5	%			—				0.0	%			99				0.2	%			(2	)			0.0	%
CCF		$	2,200				15.5	%		$	3,416				21.9	%		$	6,057				12.9	%		$	13,574				23.2	%
Corporate and Other segment (a)
Revenue		$	24							$	22							$	105							$	92
Operating loss			(15,346	)							(14,872	)							(61,320	)							(60,378	)
Depreciation & amortization			2,425								3,173								9,734								10,449
Stock option expense			372								264								1,520								5,890
Other gains and (losses), net			1								(52	)							381								(42	)
(Gain) loss on sales of assets			(1	)							53								53								98
CCF		$	(12,549	)						$	(11,434	)						$	(49,632	)						$	(43,983	)
Casualty Loss (a)
Casualty loss expense		$	(4,960	)						$	—							$	(92,321	)						$	—
Insurance proceeds			—								—								50,000								—
Operating loss			(4,960	)							—								(42,321	)							—
Impairment charges			2,237								—								44,970								—
Stock option expense			12								—								95								—
Other gains and (losses), net			—								—								122								—
CCF		$	(2,711	)						$	—							$	2,866							$	—

GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)

		Three Months Ended Dec. 31,								Twelve Months Ended Dec. 31,
		2010				2009				2010				2009
HOSPITALITY OPERATING METRICS:
Adjusted Hospitality Segment (excludes Gaylord Opryland and Other, includes Nashville Radisson)
Occupancy			70.4	%			65.5	%			72.1	%			65.4	%
Average daily rate (ADR)		$	163.26			$	174.66			$	169.63			$	179.98
RevPAR		$	114.95			$	114.34			$	122.24			$	117.68
OtherPAR		$	220.95			$	194.78			$	197.52			$	180.21
Total RevPAR		$	335.90			$	309.12			$	319.76			$	297.89
Revenue		$	161,190			$	148,339			$	608,772			$	567,140
CCF		$	37,267			$	36,336			$	166,902			$	157,988
CCF Margin			23.1	%			24.5	%			27.4	%			27.9	%
Gaylord Palms, Texan and National (excludes Gaylord Opryland, Nashville Radisson and Other)
Occupancy			71.3	%			65.5	%			73.4	%			65.7	%
Average daily rate (ADR)		$	166.94			$	179.67			$	173.16			$	184.95
RevPAR		$	119.00			$	117.73			$	127.04			$	121.54
OtherPAR		$	233.81			$	206.07			$	209.05			$	190.69
Total RevPAR		$	352.81			$	323.80			$	336.09			$	312.23
Revenue		$	159,470			$	146,356			$	602,694			$	559,907
CCF		$	36,831			$	35,769			$	165,748			$	156,226
CCF Margin			23.1	%			24.4	%			27.5	%			27.9	%
Gaylord Opryland (a)
Occupancy			66.3	%			78.4	%			65.4	%			66.5	%
Average daily rate (ADR)		$	142.46			$	148.93			$	144.38			$	150.07
RevPAR		$	94.43			$	116.72			$	94.41			$	99.74
OtherPAR		$	183.93			$	195.58			$	139.86			$	135.36
Total RevPAR		$	278.36			$	312.30			$	234.27			$	235.10
Revenue		$	37,666			$	82,719			$	113,308			$	247,053
CCF		$	2,512			$	25,286			$	21,402			$	62,515
CCF Margin			6.7	%			30.6	%			18.9	%			25.3	%
Gaylord Palms
Occupancy			78.6	%			68.0	%			74.0	%			67.0	%
Average daily rate (ADR)		$	146.51			$	169.69			$	156.73			$	176.13
RevPAR		$	115.09			$	115.47			$	116.00			$	118.01
OtherPAR		$	201.59			$	207.03			$	188.75			$	188.33
Total RevPAR		$	316.68			$	322.50			$	304.75			$	306.34
Revenue		$	40,962			$	41,716			$	156,395			$	157,209
CCF		$	8,690			$	11,139			$	40,386			$	44,717
CCF Margin			21.2	%			26.7	%			25.8	%			28.4	%
Gaylord Texan
Occupancy			72.1	%			68.9	%			72.4	%			66.3	%
Average daily rate (ADR)		$	168.76			$	158.70			$	164.82			$	165.13
RevPAR		$	121.61			$	109.37			$	119.27			$	109.49
OtherPAR		$	279.69			$	235.11			$	229.19			$	201.25
Total RevPAR		$	401.30			$	344.48			$	348.46			$	310.74
Revenue		$	55,785			$	47,887			$	192,183			$	171,357
CCF		$	17,872			$	14,966			$	63,020			$	51,251
CCF Margin			32.0	%			31.3	%			32.8	%			29.9	%
Gaylord National
Occupancy			65.6	%			61.2	%			73.7	%			64.4	%
Average daily rate (ADR)		$	182.66			$	205.39			$	191.00			$	206.86
RevPAR		$	119.77			$	125.64			$	140.69			$	133.16
OtherPAR		$	221.80			$	183.42			$	208.11			$	184.38
Total RevPAR		$	341.57			$	309.06			$	348.80			$	317.54
Revenue		$	62,723			$	56,753			$	254,116			$	231,341
CCF		$	10,269			$	9,662			$	62,342			$	60,258
CCF Margin			16.4	%			17.0	%			24.5	%			26.0	%
Nashville Radisson
Occupancy			56.2	%			64.5	%			51.0	%			60.0	%
Average daily rate (ADR)		$	87.60			$	92.09			$	87.11			$	91.71
RevPAR		$	49.26			$	59.38			$	44.40			$	55.03
OtherPAR		$	12.42			$	11.74			$	10.56			$	10.37
Total RevPAR		$	61.68			$	71.12			$	54.96			$	65.40
Revenue		$	1,720			$	1,983			$	6,078			$	7,233
CCF		$	436			$	569			$	1,154			$	1,762
CCF Margin			25.3	%			28.7	%			19.0	%			24.4	%
Other Hospitality (b)
Occupancy			0.0	%			0.0	%			0.0	%			0.0	%
Average daily rate (ADR)		$	—			$	—			$	—			$	—
RevPAR		$	—			$	—			$	—			$	—
OtherPAR		$	—			$	—			$	—			$	—
Total RevPAR		$	—			$	—			$	—			$	—
Revenue		$	233			$	(77	)		$	858			$	(39	)
CCF		$	844			$	519			$	1,448			$	488
CCF Margin			362.2	%			-674.0	%			168.8	%			-1251.3	%

Gaylord Entertainment Company and Subsidiaries
Reconciliation of Forward-Looking Statements
Unaudited
(in thousands)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”) and Consolidated Cash Flow (“CCF”) reconciliation:

		GUIDANCE RANGE
		FULL YEAR 2011
		Low				High
Adjusted Gaylord Hotels
Estimated Operating Income/(Loss)		$	102,000			$	105,300
Estimated Depreciation & Amortization			69,400				72,000
Estimated Adjusted EBITDA		$	171,400			$	177,300
Estimated Pre-Opening Costs			0				0
Estimated Non-Cash Lease Expense			5,800				6,000
Estimated Stock Option Expense			800				1,200
Estimated Gains/(Losses), Net			0				500
Estimated CCF		$	178,000			$	185,000
Gaylord Opryland
Estimated Operating Income/(Loss)		$	46,000			$	47,400
Estimated Depreciation & Amortization			26,850				28,600
Estimated Adjusted EBITDA		$	72,850			$	76,000
Estimated Pre-Opening Costs			0				0
Estimated Non-Cash Lease Expense			0				0
Estimated Stock Option Expense			150				650
Estimated Gains/(Losses), Net			0				350
Estimated CCF		$	73,000			$	77,000
Opry and Attractions segment
Estimated Operating Income/(Loss)		$	7,000			$	8,300
Estimated Depreciation & Amortization			4,900				5,400
Estimated Adjusted EBITDA		$	11,900			$	13,700
Estimated Pre-Opening Costs			0				0
Estimated Stock Option Expense			100				250
Estimated Gains/(Losses), Net			0				50
Estimated CCF		$	12,000			$	14,000
Corporate and Other segment
Estimated Operating Income/(Loss)			($63,500	)			($60,500	)
Estimated Depreciation & Amortization			13,500				13,000
Estimated Adjusted EBITDA			($50,000	)			($47,500	)
Estimated Stock Option Expense			1,800				1,500
Estimated Gains/(Losses), Net			200				0
Estimated CCF			($48,000	)			($46,000	)