Gaylord looking to expand

Gaylord Entertainment is monitoring 50 undervalued properties nationwide and plans to pursue distressed asset opportunities over the next 12 to 24 months, says Patrick Chaffin, vice president of strategic planning and investor relations. Chaffin presented the Nashville-based entertainment company’s recent financial performance, growth objectives and business strategy at the Bank of America Merrill Lynch 2009 Credit Conference in New York Dec. 2, 2009. He said the company is not interested in expanding any of its current properties or building new facilities in the near term.

“We’ve put all expansion and green field construction on hold right now,” Chaffin says. “The cost of construction is greater than the cost of acquisition.”

Gaylord is particularly interested in properties similar to those in its current portfolio of large convention hotels: hotels ranging from 1,406 rooms to 2,881 rooms. Chaffin says the hospitality company is also interested in properties as small as 800 to 1,000 rooms that could be expanded. Chaffin says 2010 will be a challenge but he feels confident about the years ahead.