Tweet me!Gaylord reported total revenues of $184 million in 2Q10 out of which hospitality segment generated revenues of $173 million and Opry and Attractions Segment reported revenues of $11.0 million. Since the properties at Nashville were closed for most of the period, the Company’s 2Q10 performance is evaluated after excluding the results of the flood impacted properties – Nashville hotel and Opry and Attractions. The remaining revenues are largely generated from the three hotels - Texan, Palms and National and the combined revenues (room revenue and food revenue) of these three hotels –increased 4.7% (y-o-y) largely on the back of higher occupancy levels while prices continue to remain weak. Total Revpar of the three hotels increased 4.7% (y-o-y) as a result of 9.4% (y-o-y) jump in occupancy, offsetting 4.3% (y-o-y) decline in average revenue per occupied room. Room Revpar of the three hotels increased 5.7% (y-o-y) with ADR (Average daily rent) slipping 3.3% (y-o-y).
- OCCUPANCY
While it is clearly evident that the surge in occupancy at these three hotels was the key driver behind the increase in revenues, a large portion of this increase in occupancy was due to the transfer of booked room nights from the flood impacted Nashville hotel. The performance of these three hotels would have been much more subdued in the absence of this temporary arrangement for the customers who had already booked rooms at the Gaylord’s Nashville hotel. The management is under-rating the impact of this movement and have not reported the performance after adjusting this impact. However, based on the statement issued by the company officials in July, nearly 43,645 room nights were transferred from Nashville to other three hotels, adding nearly 9% to the incremental occupancy in these hotels. Assuming that these transferred room nights are distributed evenly across the period May 2010-Nov 2010 (during when the Nashville remained closed), the reported improvement in occupancy in 2Q09 includes the impact of transfer of nearly 12,400 room nights to these three hotels which amount to nearly 2.8% of the total available rooms at these hotels. The reported combined occupancy of the three hotels improved 9.4% (y-o-y) to 73.4%. However, after adjusting the 2.8% of the incremental occupancy from the transfer of room-nights from Nashville hotel, the average occupancy of the three hotels was 70.7%. Thus, the adjusted occupancy increased 5.3% (y-o-y) against the reported increase of 9.4% (y-o-y). Based on adjusted occupancy, total Revpar drifted marginally up by 0.8% (y-o-y) and room Revpar increased 1.7% (y-o-y) in 2Q10.
Oh yeah, and for good measure and as a note to the Associated Press who should probably run a retraction...
Average ADR for the three hotels declined 3.3% (y-o-y) and average revenue per occupied room declined 4.3% (y-o-y).
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