Gaylord Entertainment Acquires Six Vacation Property Management Busine

Gaylord Entertainment Acquires Six Vacation Property Management Businesses from East West Resorts for $22.25 Million in Cash

    Business Editors/Real Estate Writers

    NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 3, 2005--

ResortQuest Expands in Four Premier U.S. Vacation Markets and Adds Nearly 2000 High Quality Units
    Gaylord Entertainment Company's (NYSE:GET) vacation property management division, ResortQuest, has acquired six businesses in four highly desirable U.S. vacation markets from East West Resorts for approximately $22.25 million in cash. ResortQuest will add nearly 2000 luxury residential rental homes, condominiums and villas to its 18,000 units under exclusive management. The deal is expected to be accretive to Gaylord Entertainment's 2005 earnings per share.
    "We are thrilled to add these businesses from East West Resorts to the ResortQuest network of vacation properties," said Colin V. Reed, president and chief executive officer of Gaylord Entertainment. "This acquisition is part of our strategy to expand ResortQuest's distribution and extend our dominant brand in the vacation rental market. The high quality of these properties which are in geographically desirable locations will enhance ResortQuest's value proposition to both its guests and its homeowners."
    The properties are in premier vacation locations including the Colorado ski destinations of Aspen and Breckenridge and the South Carolina beach destinations of Hilton Head and the Charleston Outer Islands, specifically Kiawah Island, Seabrook Island, Sullivan's Island and Isle of Palms. Units in all of these markets will be marketed under the ResortQuest name following a transition period. The Colorado and Hilton Head locations are in existing ResortQuest markets and, as such, are expected to yield synergies.
    "ResortQuest is an important component of the Gaylord growth story," continued Reed. "We are excited about the overall business potential at ResortQuest and are pleased with the progress that Mark Fioravanti and his team have made. We will continue to evaluate growth opportunities that are accretive and that strengthen our position in markets that are strategically important to the consumer travel industry."
    "This transaction is consistent with our growth plans in that it further expands our businesses in the premier ski and beach destinations. We look forward to welcoming the exceptional talent working in these markets to our team and to providing the outstanding service for which the ResortQuest brand is known to new homeowners and guests," said Mark Fioravanti, president of ResortQuest. "This acquisition also provides an excellent strategic fit with the quality of our current property portfolio."

    About Gaylord Entertainment

    Gaylord Entertainment (NYSE:GET), 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, please visit www.gaylordentertainment.com.

    About ResortQuest

    ResortQuest, the leading vacation property management company in North America, provides a one-stop resource in more than 50 premier resort destinations (www.resortquest.com). ResortQuest is the largest marketer and management company of vacation condominiums and home rentals in the U.S. and Canada, based on a portfolio of over 18,000 vacation rental properties with a combined real estate value estimated in excess of $7.0 billion. ResortQuest employs approximately 4,500 people and is owned and operated by Gaylord Entertainment Co. (NYSE: GET), one of the largest and fastest growing companies in the hospitality and entertainment industries, based in Nashville, Tenn., that also owns and operates Gaylord Hotels and the Grand Ole Opry. For more information, visit www.resortquest.com or www.gaylordentertainment.com.

    About East West Resorts

    Edwards, Colo.-based East West Resorts offers luxury resort experiences in premier resort locations and is affiliated through common ownership with real estate developer East West Partners.

    This press release contains statements as to Gaylord'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, the expected performance of the six acquired businesses, business levels at Gaylord's hotels and ResortQuest's properties, risks associated with ResortQuest's business and Gaylord's ability to successfully integrate the East West businesses following the acquisition, and the ability to consummate financing for new developments. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by Gaylord with the Securities and Exchange Commission. Gaylord 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.

--30--TM/ny*

CONTACT: Investor Relations Contacts: Gaylord Entertainment David Kloeppel, 615-316-6101 dkloeppel@gaylordentertainment.com or Key Foster, 615-316-6132 kfoster@gaylordentertainment.com or Sloane & Company Monica Huang, 212-446-1874 mhuang@sloanepr.com or Media Contacts: Gaylord Entertainment Greg Rossiter, 615-316-6302 grossiter@gaylordentertainment.com or Beth Aleridge, 615-316-6828 beth.aleridge@gaylordentertainment.com or Sloane & Company Dan O'Connor, 212-446-1865 doconnor@sloanepr.com

KEYWORD: TENNESSEE INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION TRAVEL ENTERTAINMENT MERGERS/ACQ SOURCE: Gaylord Entertainment Company

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