Gaylord to Sell 80.1% Ownership Stake in Aston Waikiki Beach Hotel

    Business Editors/Travel & Hospitality Writers

    NASHVILLE, Tenn.--(BUSINESS WIRE)--May 2, 2005--Gaylord Entertainment Co. (NYSE:GET) announced today that it has signed a term sheet with a private real estate fund managed by DB Real Estate Opportunities Group to sell an 80.1% interest in the Aston Waikiki Beach Hotel in Honolulu, Hawaii. On April 12, 2005, Gaylord announced it had entered into an agreement to purchase the Aston Waikiki for $107 million and said that it anticipated securing a partner to fund the majority of the equity required for the purchase. Gaylord expects its gross investment in the property to be $5-7 million. The term sheet also calls for ResortQuest to manage the property under a long-term management agreement.
    The transaction is subject to definitive documentation, due diligence and approval by Gaylord Entertainment's Board of Directors.
    The Aston Waikiki Beach Hotel is centrally located near famed Waikiki Beach and Kapiolani Park. The hotel offers approximately 19,400 square feet of retail and restaurant space, 2,900 square feet of meeting space, and an outdoor swimming pool with views of the Pacific Ocean. The 23-story Main Tower houses 644 guest rooms with private lanais, while the adjacent nine-story Mauka Tower has 72 rooms. The hotel was renovated in 2002 and continues to be one of the more popular destination spots in Waikiki. It is one of twelve vacation destinations managed by ResortQuest in the immediate area.

    About Gaylord Entertainment

    Gaylord Entertainment, a leading hospitality and entertainment company based in Nashville, Tenn., owns and operates three industry-leading brands -- Gaylord Hotels (www.gaylordhotels.com), its network of upscale, meetings-focused resorts, ResortQuest (www.resortquest.com), the nation's largest vacation rental property management company, and the Grand Ole Opry (www.opry.com), the weekly showcase of country music's finest performers for 79 consecutive years. The company's entertainment brands and properties include the Radisson Hotel Opryland, Ryman Auditorium, General Jackson Showboat, Springhouse Links, Wildhorse Saloon, and WSM-AM. For more information about the company, visit www.gaylordentertainment.com.

    About DB Real Estate Opportunities Group

    The DB Real Estate Opportunities Group (REOG) is responsible for acquiring and managing high yield, opportunistic real estate equity investments on behalf of its clients. With more than US$6.7 billion in assets under management, REOG possesses one of the longest and most distinguished track records of principal investing in the global market since 1994. REOG generally employs opportunistic investment strategies seeking relative value across multiple markets.

    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 facilities, costs associated with developing new hotel facilities, business levels at the company's hotels, risks associated with ResortQuest's business and the company's ability to successfully integrate and achieve operating efficiencies at ResortQuest, and the ability to obtain financing for new developments. The company's ability to achieve forecasted results for its ResortQuest business depends upon levels of occupancy at ResortQuest units under management and returning damaged units to service on a timely basis. In the hospitality segment, the company's ability to continue to improve occupancy levels and operating efficiencies at its new Gaylord Texan Resort will be an important factor in 2005. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the company with the Securities and Exchange Commission. The company 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.

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CONTACT: Gaylord Entertainment Investor Relations Contacts: David Kloeppel, 615-316-6101 (CFO) dkloeppel@gaylordentertainment.com Key Foster, 615-316-6132 (VP Treasury & Investor Relations) kfoster@gaylordentertainment.com Media Contact: Greg Rossiter, 615-316-6302 (VP Corporate Communications) grossiter@gaylordentertainment.com or Sloane & Company Media Contact: Dan O'Connor, 212-446-1865 doconnor@sloanepr.com

KEYWORD: TENNESSEE HAWAII INDUSTRY KEYWORD: TRAVEL REAL ESTATE BUILDING/CONSTRUCTION MARKETING AGREEMENTS SOURCE: Gaylord Entertainment Co.

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