Gaylord Entertainment Reports Second Quarter 2002 Results

Company Successfully Executes Non-Core Divestitures, Streamlining Business and Strengthening Balance Sheet

Press Release: Gaylord Entertainment
August 2, 2002
NASHVILLE, TN -- Gaylord Entertainment Company (NYSE: GET) yesterday reported its financial results for the second quarter ended June 30, 2002.

For the quarter, consolidated revenues from continuing operations were $98.3 million, an increase of 40.2% from $70.1 million in the same period last year. Consolidated operating income for second quarter 2002 was $7.6 million compared to a loss of $16.9 million in the second quarter 2001. The company had net income for the quarter of $18.1 million, or $0.54 per diluted share. This compares to a net loss of $3.6 million, or $0.11 per diluted share, for the second quarter 2001. EBITDA was $12.5 million in the latest quarter compared to $4.7 million in the same quarter of 2001. EBITDA is calculated as operating income from continuing operations plus depreciation, amortization, non-cash lease and naming rights agreement expenses, and other non-cash items associated with accounting changes and/or pension plans, impairment and other charges, restructuring charges, gain on Opry Mills, and excluding hotel pre-opening costs (see supplemental financial results).

Year-to-date, consolidated revenues from continuing operations were $199.5 million, an increase of 32.7% from $150.3 million in the same period last year. Consolidated operating losses for the first six months of 2002 were $9.1 million compared to $19.0 million in the first six months of 2001. The company had net income in the six-month period of 2002 of $9.8 million, or $0.29 per diluted share. This compares to net income of $20.6 million, or $0.61 per diluted share, in the first six months of 2001. For the first six months, EBITDA, as defined above, was $22.3 million compared to $14.3 million in the same period of 2001.

In early July 2002, the Company agreed to sell its Acuff-Rose Music Publishing catalog and associated assets for $157 million in cash. In late June, the Company sold its stake in the Opry Mills Shopping Center for $30.8 million and received a tax refund of $64.6 million from the U.S. Department of Treasury. Upon completion of the Acuff-Rose sale, the Company will have received an aggregate of approximately $250 million in cash to pay down debt and expand its hospitality offerings, including the Gaylord Opryland Texas Resort & Convention Center that is slated to be completed in April 2004.

Commenting on the Company's progress, Colin Reed, president and chief executive officer of Gaylord Entertainment, said, "Our management team is determined to unlock the value of the company. Over the last year, we have maintained an intense focus on streamlining our business, reducing costs, divesting non-core assets and investing in those businesses where we believe Gaylord has a competitive advantage. In this process, we have transformed the company to one that is financially and strategically well positioned for future success."

Mr. Reed continued, "We successfully divested non-core assets at attractive multiples despite a difficult market environment. In doing so, we have strengthened our balance sheet - injecting liquidity and decreasing leverage - to help grow our core hospitality operations.

"We fully anticipate Gaylord Entertainment will continue to grow and achieve success in the hospitality industry. We are also working diligently to capitalize on our strong entertainment brands such as the Grand Ole Opry."

Segment Operating Results

Hospitality

Hospitality revenues were $80.5 million in the second quarter of 2002, an increase of $28.8 million over the second quarter of 2001. This increase of 55.8% is primarily due to revenue from the opening of the Gaylord Palms property in Kissimmee, Fla. Hospitality operating income was $4.9 million in the quarter compared to operating income of $4.0 million for the second quarter of 2001. Hospitality EBITDA was $17.3 million in the latest quarter, an increase of $4.5 million over the same period last year. Pre-opening expenses were $0.7 million and $2.4 million for the second quarter 2002 and 2001, respectively. Due to the effect of GAAP straight-line lease payment recognition on our Gaylord Palms ground lease, non-cash lease expense was $1.7 million for the second quarter of 2002.

While operating in a difficult environment, the Company saw improvements in the quarter at its Gaylord Opryland Resort & Convention Center in Nashville as operational changes and customer service initiatives have begun to take effect. RevPAR for the second quarter was $94.21 versus $92.25 during the year-earlier period, and booking rates for future periods continue to strengthen. The Company's Gaylord Palms property in the Orlando area continues to mature, performing well in a difficult market.

"We are pleased with the improving results at Gaylord Opryland and the strong launch from our Gaylord Palms team," Mr. Reed said. "In Nashville, our customer service initiatives are taking hold, with future bookings increasing the last three quarters. Despite the economic environment, we are seeing some operational improvements and are working to establish positive long-term sales trends at both our resorts.

"We believe Gaylord is well positioned to withstand the challenging macroeconomic environment given our strong brand name, outstanding properties and attractions, and focus on the relatively stable group business."

Attractions

Attractions revenues were $14.9 million in the second quarter of 2002, a decline of $1.0 million compared to the second quarter of 2001. Operating income in the Attractions segment was $2.1 million in the second quarter compared to operating losses of $0.3 million in the second quarter of 2001. Attractions EBITDA increased to $3.3 million in the latest quarter from $1.3 million in the same period last year, an increase of 161.4%. Year-to-date, Attractions EBITDA has risen 217.6% from the comparable period in 2001.

The Grand Ole Opry continues to draw top country music acts, such as Brooks & Dunn, Kenny Chesney and Willie Nelson, who performed during the quarter. The success of the Opry underscores the popularity of its brand and format, driving attendance increases of 9.7 percent from last year's second quarter. Gaylord is currently working to amplify this success through national broadcast syndication, a near-term goal. In addition, Corporate Magic, the company's corporate event production business, continued to grow its cash flow due to new and effective cost controls implemented in late 2001.

"We continue to be pleased with the drawing power and market response to our Attractions Segment," Reed said. "As we stated in the first quarter, we will remain steadfast in managing this business to increase overall margins and to explore additional opportunities to extend the Opry's lifestyle brand across other distribution channels."

Media

The Media Segment is now composed solely of Gaylord's three radio stations due to the announced sale of Acuff-Rose Music Publishing and its subsequent reclassification into discontinued operations. As a result, the consolidated historical financials have been restated to reflect this change. Media revenues from continuing operations were $2.8 million in the second quarter of 2002, an increase of 15.3% over $2.4 million for the same time period in 2001. Media operating losses of $0.2 million in the quarter were basically unchanged compared to last year's comparable quarter. Media EBITDA from continuing operations was negative $57,000 in the latest quarter, compared to a negative $43,000 during the same period in 2001. The decline in operating margins in the Media segment year-over-year is a result of investment in advertising and promotion necessary to reposition the Company's radio stations.

Corporate and Other

Operating losses in the Corporate and Other segment totaled $9.7 million for the second quarter of 2002, a 14.4% improvement from a loss of $11.3 million in the year-earlier period. Corporate expenses in the quarter include $0.9 million in non-recurring charges related to employee severance, advisory services and consulting fees related to Gaylord's receipt of a $64.6 million tax refund related to the Job Creation and Worker Assistance Act of 2002.

Asset Dispositions and Recent Events

As discussed earlier, the Company sold its interest in the Opry Mills Shopping Center for $30.8 million and is working to finalize its pending sale of its Acuff-Rose Music Publishing assets for $157 million in cash. Consistent with its previously announced plans, Gaylord management continues to evaluate all assets in its portfolio and is in the process of divesting certain non-core assets, including its investments in the Nashville Predators NHL hockey franchise, miscellaneous real estate and its majority ownership interest in the Oklahoma Redhawks, the AAA affiliate of the Texas Rangers. These assets have been classified as discontinued operations, and consolidated historical financials have been amended to reflect this change. In early July, Gaylord exercised its right to put its ownership interest in the Nashville Predators back to The Nashville Hockey Club L.P. The result of this put exercise will be the return of Gaylord's invested capital through three equal annual installments, in addition to preferred return payments through the last principal installment.

Like other companies in the hospitality industry, the Company was notified by the insurers providing its property and casualty insurance that policies issued upon renewal would no longer include coverage for terrorist acts. As a result, the servicer for the Company's credit facility secured by its Nashville property gave notice to the Company in May of 2002 it believed the lack of insurance covering terrorist acts did constitute a default under that credit facility. Although coverage for terrorist acts was never specifically required as part of the required property and casualty coverage, the Company determined to resolve this issue by obtaining coverage for terrorist acts. The Company has obtained coverage in an amount equal to the outstanding balance of the credit facility. The Company has received a notice from the servicer that any previous existing default is cured and coverage in an amount equal to the outstanding balance of the loan will satisfy the requirements of the credit facility unless the servicer determines there is a change in circumstances that would cause it to impose some additional requirement.

The Company's independent accountants have advised the Company they believe, based on the applicable accounting standard, because the letter received from the servicer does not provide assurance to the Company the servicer would not impose some additional requirement during a period that is at least one year and one day from the date of the June 30, 2002 balance sheet, the Company may be required to classify its outstanding indebtedness as a current liability (rather than long-term debt), to reflect the possibility that the servicer may impose some additional requirement that the Company could not satisfy and that failure might result in a default under the Company's credit facility. The Company believes the imposition of any additional requirement relating to terrorism insurance that would result in a default that might permit the loan to be called is highly unlikely, especially since the Company has obtained coverage for terrorist acts in an amount equal to the outstanding balance of the loan. The Company remains in compliance with all the financial covenants related to its credit facilities and anticipates, if required, the classification of amounts under its credit facilities as short-term indebtedness would be temporary until the Company can reach an agreement with its lenders that satisfies its independent accountants.

"We believe this is merely a technical issue. We are satisfied with the outcome from a business and legal perspective, and are continuing to work with our independent accountants and our servicer to obtain waiver language satisfactory to both parties. We believe this issue will be resolved in the near future, probably by the end of the third quarter," said David Kloeppel, chief financial officer of Gaylord Entertainment. "Fundamentally, our balance sheet will be in much better condition as a result of our pending asset sales. In the second quarter, we reduced our Nashville hotel's principal debt obligations, both senior and mezzanine, and also lowered the outstanding principal balance of our debt on our Florida hotel. Furthermore, we anticipate additional debt reduction upon completion of our sale of Acuff-Rose. We are directing capital toward the completion of our resort and convention center in Texas by April 2004, two months earlier than previously announced."

"Our management team has done an excellent job realizing strong valuations through non-core asset sales," Mr. Reed said. "For example, the announced sale of Acuff-Rose Music Publishing is at a very attractive multiple of net publisher's share for a country music catalog. We continue to explore opportunities to divest the balance of our non-core assets in similar fashion. We are also firm in our belief these efforts will unlock value for our shareholders and allow us to redirect capital and energy into our core hospitality and entertainment businesses to generate compelling returns for our shareholders in the long term."

Outlook

The following information is based on current information as of Aug. 1, 2002. The Company does not expect to update guidance until next quarter's earnings release; however, the Company may update its full business outlook or any portion thereof at any time for any reason.

Gaylord expects total Hospitality Segment RevPAR for the third-quarter 2002 to be between $98.50 and $99.50, and to be between $100 and $102 for full-year 2002. The Hospitality Segment includes the Company's three hotel properties - Gaylord Opryland, Gaylord Palms and the Radisson Nashville. Gaylord Palms RevPAR is expected to be between $106 and $108 for the third-quarter 2002 and between $110 and $112 for full-year 2002, while Gaylord Opryland RevPAR is expected to be up 5 to 7 percent for the third-quarter 2002 from third-quarter 2001, and basically flat for full-year 2002 against full-year 2001.

Looking forward, Mr. Reed said, "As we complete the first half of the year, we are pleased with our progress. Our continued evolution to a more focused business model is supported by strategic growth and financial discipline. We continue to streamline the company, expand our hospitality offerings and seek new ways to cross-market our brands."

Gaylord Entertainment will hold a conference call to discuss this release today at 10:00 a.m. EST. Investors will have the opportunity to listen to the conference call over the Internet at www.gaylordentertainment.com. To listen to the live call, please go to the Web site at least 15 minutes early 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 through the end of business on Aug. 8, 2002.

About Gaylord Entertainment

Gaylord Entertainment, a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates Gaylord Hotels(TM) branded properties, including the Gaylord Opryland Resort & Convention Center in Nashville, and the Gaylord Palms Resort & Convention Center in Kissimmee, Fla. The company's entertainment brands include the Grand Ole Opry, the Ryman Auditorium, the General Jackson Showboat and WSM Radio. Gaylord Entertainment's stock is traded on the New York Stock Exchange under the symbol GET. 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 economic conditions affecting the hospitality business generally, the timing of the opening of new hotel facilities, costs associated with developing new hotel facilities, business levels at the company's hotels, the ability to complete potential divestitures successfully and the ability to consummate 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 Gaylord Entertainment with the Securities and Exchange Commission.

Gaylord Entertainment 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.

            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    CONSOLIDATED FINANCIAL RESULTS
                               Unaudited
             (Amounts in thousands, except per share data)


                          Three Months Ended        Six Months Ended
                               June 30,                 June 30,
                         --------------------    ---------------------
                           2002        2001       2002         2001
                         --------------------    ---------------------
Revenues                 $ 98,289    $ 70,105    $ 199,544  $ 150,338
Operating expenses
 Operating costs           61,957      47,205      131,079    100,789
 Selling, general
  and administrative (a)   25,786      18,509       53,689     35,865
 Preopening costs             650       2,413        6,356      4,308
 Gain on sale
  of Opry Mills (b)       (10,567)          -      (10,567)         -
 Impairment and
   other charges                -      11,388            -     11,388
  Restructuring charges,
    net (c)                    70      (2,304)          70     (2,304)
 Depreciation              11,996       8,757       26,322     17,445
 Amortization                 802         996        1,739      1,884
                         --------------------    ---------------------
Operating income (loss)     7,595     (16,859)      (9,144)   (19,037)
                         ---------------------   ---------------------

Interest expense          (12,749)    (12,121)     (24,350)   (20,918)
Interest income               550       2,177        1,077      3,208
Unrealized gain (loss)
 on Viacom stock, net     (44,012)     85,603        2,421     84,405
Unrealized gain (loss)
 on derivatives, net       49,835     (66,020)      20,138    (27,081)
Other gains and losses        260       5,570          462      6,456
                         --------------------    ---------------------
Income (loss) before provision
 (benfefit) for income taxes,
 discontinued operations, and
 cumulative effect of
 accounting change          1,479      (1,650)      (9,396)    27,033
                         --------------------    ---------------------

Provision (benefit) for
 income taxes (d)         (15,227)       (195)     (19,414)     9,049
                         --------------------    ---------------------
Income (loss) from
 continuing operations
 before discontinued
 operations and cumulative
 effect of accounting
 change                    16,706      (1,455)      10,018     17,984

Income (loss) from
 discontinued operations,
 net of taxes               1,403      (2,103)       2,404     (9,327)
 Cumulative effect of
 accounting change,
 net of taxes (e)               -           -       (2,595)    11,909
                         --------------------    ---------------------
Net income (loss)        $ 18,109    $ (3,558)     $ 9,827   $ 20,566
                         =====================   =====================

Basic net income
(loss) per share:
  Income (loss) from
   continuing operations   $ 0.50     $ (0.05)      $ 0.30     $ 0.54
  Income (loss) from
   discontinued operations,
   net of taxes              0.04       (0.06)        0.07      (0.29)
  Cumulative effect of
   accounting change,
   net of taxes                 -           -        (0.08)      0.36
                         --------------------    ---------------------
  Consolidated EPS         $ 0.54     $ (0.11)      $ 0.29     $ 0.61
                         =====================   =====================

Fully diluted net income
(loss) per share:
  Income (loss) from
   continuing operations   $ 0.50     $ (0.05)      $ 0.30     $ 0.54
  Income (loss) from
   discontinued operations,
   net of taxes              0.04       (0.06)        0.07      (0.29)
  Cumulative effect of
   accounting change,
   net of taxes                 -           -        (0.08)      0.36
                         --------------------    ---------------------
  Consolidated diluted EPS  $0.54     $ (0.11)      $ 0.29     $ 0.61
                         =====================   =====================


    (a) Includes non-cash lease expense of $1,686 and $3,647 for the
three months and six months ended June 30, 2002, respectively, related
to the effect of recognizing the Gaylord Palms ground lease expense on
a straight-line basis. Also includes a net charge of $3,346 for
non-cash pension and post-retirement adjustments recorded in the first
quarter, 2002. And includes non-cash expense of $282 and $309 for the
three months ended June 30, 2002 and 2001, respectively, and $564 and
$618 for the six months ended June 30, 2002 and 2001, respectively,
related to the Naming Rights Agreement for the Gaylord Entertainment
Center on a straight-line basis.

    (b) During the second quarter of 2002, the Company sold its
partnership interest in Opry Mills and received approximately $30,800
in cash proceeds upon the disposition. The Company has deferred
approximately $20,000 of the gain representing the present value of
the continuing land lease interest between the Company and the Opry
Mills partnership. The Company will recognize the $20,000 deferred
gain ratably over the 70 year term of the land lease. The Company
recognized the remainder of the proceeds, net of certain transaction
costs as a gain of approximately $10,567 during the second quarter of
2002.

    (c) Includes a restructuring charge of $1,149 for the three months
ended June 30,2002, offset by a reversal of prior years' restructuring
charges of $1,079 primarily related to entering into sub-lease
agreements reducing the Company's future expected payments.

    (d) During the second quarter of 2002, the Company recognized a
$15,500 benefit as a reduction in income tax expense resulting from
the settlement of certain federal income tax issues with the Internal
Revenue Service. The Company will not receive any cash proceeds in
connection with this benefit.

    (e) For the six months ended June 30, 2002, the cumulative effect
of accounting change relates to the impairment of the goodwill
associated with the Radisson Hotel at Opryland in relation to adopting
SFAS No. 142. The goodwill impairment was $4,221, net of taxes of
$1,626. In accordance with SFAS No. 142, the cumulative effect was
retroactively recorded to January 1, 2002.


            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                        June 30, 2002 and 2001
                        (Amounts in thousands)

                                                             Audited
                                        2002        2001     12/31/01
                                       -----       -----    ---------
                   ASSETS
 Current assets:
   Cash - unrestricted             $  73,208     $ 97,927     $ 9,194
   Cash - restricted                  17,083       31,265      64,993
   Trade receivables, net             36,899       25,352      15,079
   Current assets of
    discontinued operations            8,415       56,817      50,530
   Other current assets               39,227       39,426      43,514
                                     -------      -------      ------
         Total current assets        174,832      250,787     183,310

 Property and equipment, net of
  accumulated depreciation         1,048,844      855,870     993,347
 Goodwill                              9,630       14,180      13,851
 Intangible assets                     6,271        1,082       6,299
 Investments                         561,052      642,634     561,359
 Estimated fair value
  of derivative assets               159,501      122,869     158,028
 Long-term deferred financing costs  119,051      148,809     137,513
 Long-term assets of
  discontinued operations             29,872      138,679      84,016
 Other long-term assets               33,220       36,047      30,099
                                     -------      -------      ------

     Total assets                 $2,142,273   $2,210,957  $2,167,822
                                  ==========   ==========  ==========


            LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
   Current portion of
    long-term debt                   $ 8,004      $ 8,004      88,004
   Accounts payable and
    accrued liabilities               84,178       83,693      91,218
   Current liabilities of
    discontinued operations           12,657       28,648      30,836
                                     -------      -------      ------
      Total current liabilities      104,839      120,345     210,058

 Secured forward exchange contract   613,054      613,054     613,054
 Long-term debt                      395,219      364,995     380,993
 Deferred income taxes               210,170      203,464     165,824
 Estimated fair value of
  derivative liabilities              66,760      131,629      85,424
 Other long-term liabilities          80,171       38,801      52,304
 Other long-term liabilities
  of discontinued operations               -        4,827           7
 Minority interest of
  discontinued operations              1,737        1,703       1,679
 Stockholders' equity                670,323      732,139     658,479
                                    --------     --------     -------

    Total liabilities and
     stockholders' equity        $ 2,142,273   $2,210,957  $2,167,822
                                 ===========   ==========  ==========


            GAYLORD ENTERTAINMENT COMPANY AND SUBSIDIARIES
                    SUPPLEMENTAL FINANCIAL RESULTS
                               Unaudited
             (Amounts in thousands, except per share data)


                          Three Months Ended        Six Months Ended
                               June 30,                 June 30,
                          -------------------    ---------------------
                           2002       2001         2002       2001
                          -------------------    ---------------------
Consolidated adjusted
 net income
Net income /
(loss) - GAAP            $ 18,109   $ (3,558)      $,9,827   $ 20,566
 Plus: pre-opening costs,
  net of tax                  400      1,617         3,909      2,886
 Plus: accounting changes,
  net of tax                    -          -         2,595    (11,909)
 Plus: discontinued
  operations, net of tax   (1,403)     2,103        (2,404)     9,327
 Plus: SFC deferred finance
  charges, net of tax       4,123      4,492         8,200      8,934
 Plus: change in FMV of
  Viacom stock,
  net of tax               27,067    (57,354)       (1,489)   (56,551)
 Plus: change in FMV of
  derivatives,
  net of tax              (30,649)    44,233       (12,385)    18,144
 Plus: pension charges,
  net of tax                    -          -         2,058          -
 Plus: impairment and other
  charges, net of tax           -      7,630             -      7,630
 Less: restructuring charges,
  net of tax                   43     (1,544)           43     (1,544)
 Less: gain on sale
  of Opry Mills            (6,499)         -        (6,499)         -
 Less: other, net of tax     (160)    (3,732)         (284)    (4,326)
 Less: income
  tax benefit             (15,500)         -       (15,500)         -
                          --------------------    --------------------
Net income /
 (loss) - adjusted        $(4,468)   $(6,113)     $(11,928)   $(6,842)
                          =====================   ====================


Consolidated adjusted EBITDA

Operating income / (loss)  $7,595   $(16,859)      $(9,144)  $(19,037)
 Plus: depreciation        11,996      8,757        26,322     17,445
 Plus: amortization           802        996         1,739      1,884
 Plus: pre-opening costs      650      2,413         6,356      4,308
 Plus: pension charges          -          -         3,346          -
 Plus: impairment and
  other charges                 -     11,388             -     11,388
 Less: restructuring
  charges                      70     (2,304)           70     (2,304)
 Less: gain on sale
  of Opry Mills           (10,567)         -       (10,567)         -
 Plus: noncash
  lease expense             1,686          -         3,647          -
 Plus: noncash naming
  rights for Gaylord Arena    282        309           564        618
                          --------------------    --------------------
  Consolidated EBITDA     $12,514    $ 4,700      $ 22,333   $ 14,302
                          ====================    ====================

Business segments
Revenues:
 Hospitality             $ 80,472   $ 51,661     $ 160,768  $ 110,152
 Attractions               14,948     15,980        33,762     35,417
 Media                      2,813      2,440         4,902      4,659
 Corporate and Other           56         24           112        110
                         ---------------------   ---------------------
    Total                $ 98,289   $ 70,105     $ 199,544  $ 150,338
                         =====================   =====================

Depreciation and amortization:
 Hospitality              $ 9,999    $ 6,346      $ 22,328   $ 12,663
 Attractions                1,221      1,508         2,595      2,942
 Media                        155        163           304        330
 Corporate and Other        1,423      1,736         2,834      3,394
                         ---------------------   ---------------------
    Total                $ 12,798    $ 9,753      $ 28,061   $ 19,329
                         =====================   =====================

Operating income / (loss):
 Hospitality              $ 7,269    $ 6,402      $ 12,096   $ 16,977
 Hospitality
  preopening costs           (650)    (2,413)       (6,356)    (4,308)
 Hospitality noncash
   lease expense           (1,686)         -        (3,647)         -
 Attractions                2,057       (254)        1,528     (1,644)
 Media                       (212)      (206)         (655)      (382)
 Corporate and Other       (9,680)   (11,304)      (22,607)   (20,596)
 Gain on sale
  of Opry Mills            10,567          -        10,567          -
 Impairment and
   other charges                -    (11,388)            -    (11,388)
 Restructuring charges, net   (70)     2,304           (70)     2,304
                        ---------------------    ---------------------
    Total                 $ 7,595  $ (16,859)     $ (9,144) $ (19,037)
                        =====================    =====================

Hospitality operating metrics
Gaylord Opryland
Occupancy                   67.45%     64.44%        66.11%     69.03%
Average daily rate (ADR)  $139.68   $ 143.15      $ 139.72   $ 141.28
RevPAR                    $ 94.21   $  92.25      $  92.37   $  97.52
Total revenue per
  available room (1)      $175.84   $ 190.67      $ 176.30   $ 205.15

Gaylord Palms
Occupancy                   64.80%        NM         68.00%        NM
Average daily rate (ADR) $ 176.76         NM      $ 178.71         NM
RevPAR                   $ 114.54         NM      $ 121.53         NM
Total revenue per
  available room (1)     $ 254.40         NM      $ 267.90         NM


(1) Includes food & beverage and other revenue per room.


-------------------------------------------------------

Contact: 
     Investor Relations Contacts:
     Gaylord Entertainment
     David Kloeppel, 615/316-6101
     dkloeppel@gaylordentertainment.com
              or
     Gaylord Entertainment
     Key Foster, 615/316-6132
     kfoster@gaylordentertainment.com
              or
     Sloane & Company
     Jenny Lee, 212/446-1892
     jlee@sloanepr.com
              or
     Media Contacts:
     Gaylord Entertainment
     Jim Brown, 615/316-6302
     jbrown@gaylordentertainment.com

or
Sloane & Company
Dan O'Connor, 212/446-1865
doconnor@sloanepr.com