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Gaylord Marriott Deal--Excludes Dollywood Nashville Snow/Water Park Deal


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Interesting news out concerning Gaylord Entertainment, operator of large convention and meeting destination resort hotels, and Marriott:

http://www.washingtonpost.com/business/economy/marriott-gaylord-deal-to-boost-dominance-in-washington-convention-hotel-market/2012/05/31/gJQA8gBP5U_story.html?wpisrc=nl_headlines_Fri

In a nutshell Gaylord Entertainment is transitioning to become a REIT and Marriott will contract to administer specific Gaylord Hotels. Much of this change has been driven by activist shareholders demanding better returns from Gaylord Entertainment.

Gaylord Entertainment will retain the joint venture with Dollywood Productions to develop an indoor snow and water park adjacent to the Gaylord Opryland Hotel. That ventures scope was widened by statements Dolly Parton made this year at Dollywood upon the occasion of the grand opening of Wild Eagle. Entrepreneur Parton described the water and snow components as only the first phase in a much larger amusement park development.

This morning the CEO of Gaylord Entertainment, Colin Reed, confirmed for me Gaylord will retain the JV with Dollywood to develop the new park and will continue, with its committed investment of 50% of the costs, and those funds will come from the REIT.

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Precisely. Gaylord doesn`t have the best track record for running parks in the long term.

I don`t know if I ever found out when the jv with Dollywood was announced. But Dollywood is a partnership with Herschend Entertainment. So is Herschend entertainment in any way involved in this joint venture?

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And whaddaya know, Paul Ruben has nothing but praise for Herschend!

Perhaps he most appreciates their deep pockets (which, based on his quote in the first article you linked to, may not be quite as deep as Disney's)...

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  • 2 months later...

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