Gaylord’s Profits Plummet
The Star-Telegram has a story today about the Gaylord Texan’s parent company, Gaylord Entertainment, reporting a second quarter revenue increase of 36 percent over last year—but a net income drop of 91 percent. The company reported a net income of $106.8 million in Q2 ‘07; for Q2 ‘08, they’re looking at a net income of $8.78 million. That’s right, eight. They blame it on decreased attendance at conventions. Does this bode well for the convention center hotel business?
3 Comments to “Gaylord’s Profits Plummet”
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Reported today, MGM Mirage, the biggest resort operator in Las Vegas, including Bellagio, Mandalay Bay, Luxor and MGM Grand experienced a 69% drop in 2Q net income ($113mm) compared to $360mm last year. Net revenue fell slightly to $1.90b from $1.94b.
Maybe all this is just part of our “mental recession”
Actually, Kristiana, Gaylord’s numbers were better this year than last, if you exclude a one-time gain in 2007:
“The hotel chain, which owns the Gaylord Texan in Grapevine, reported net income of $8.78 million compared to $106.8 million in the second quarter of 2007 when the company had a one-time gain of $140.3 million from the sale of its investment in Bass Pro Group.”