Upgrades lift Gaylord
Posted on November 4, 2009 at 10:34 am
Shares of Gaylord Entertainment (Ticker: GET) are up more than 7 percent this morning on the back of upgrades from FBR Capital Markets and Wells Fargo. The move comes after a similarly strong day yesterday, when Gaylord reported better-than-expected Q3 numbers.
FBR researcher Patrick Scholes has lifted his rating on Gaylord to ‘market perform’ from ‘underperform’ and put a price target of $17 on the stock. At Wells, analyst Jeff Donnelly said the main pricing risks to Gaylord’s business are baked into the stock, which should trade between $16 and $18 going forward.
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Go on, book that Vegas trip
Posted on at 8:12 am
That’s almost what the investment community is saying to Gaylord Entertainment CEO Colin Reed, who on Tuesday put Sin City on a short list of cities his company may buy its way into.
A good chunk of the hotel/resort operator’s third-quarter earnings call Tuesday focused on Las Vegas, where a bunch of glitzy properties are struggling — or as Reed put it, “operating way below their pro formas” of six or seven years ago. Several analysts pushed Reed to clarify his recently floated strategic option of buying such a troubled property to add to his portfolio.
Generating an appropriate return is priority No. 1, Reed said, and such a return will have to come primarily from serving one of the company’s core customer groups — associations that rotate their meetings around the country each year. Half of those groups, Reed added, will never go to Vegas. The other half wants to be there regularly — and they could be enough to tip Gaylord’s M&A scales in the coming year or so, when Reed thinks the market will really hit bottom.
“I don’t think we should get into too much detail, but we’ve been consistent in telling people over the years that people rotate out of our system to go to Vegas,” Reed said. “Is it a market that interests us? It is. There are probably as well five, six, seven other markets in the United States that interest us as well.”
Investors seem plenty interested, too. Gaylord shares (Ticker: GET) jumped almost 8 percent Tuesday. Put a good chunk of that down to the company’s solid cost controls and the improving performance of its D.C.-area property, but also consider it a sign that the market is confident Reed and his team will soon find something to their liking in the Nevada desert.
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A little more patience needed for hotel revival
Posted on November 2, 2009 at 10:50 am
The latest version of Smith Travel Research’s index of leading indicators shows the industry has slowed since the summer. The upshot: While the index is generally about five months ahead of the industry as a whole, “it appears that in our current cycle the lead time might be extended.”
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Gaylord mulls the M&A route
Posted on October 29, 2009 at 7:36 amThe recession has Gaylord execs scanning the luxury hotel landscape for properties it could acquire and expand into full-fledged resorts. At an investor conference yesterday, Senior VP of Finance Mark Fioravanti told investors about 50 hotels around the country would fit the bill.
This hotel sector snapshot ain’t pretty
Posted on October 8, 2009 at 11:31 amThe downturn in hotel management is likely to last well into 2011 and has one economist saying up to 20 percent of all hotel loans could default before we’re in the clear.
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Gaylord finds some willing sellers
Posted on at 9:50 amBondholders of the Nashville-based hotel and convention operator have submitted for redemption more than $200 million of debt due in 2013.
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Local hotel venture opens first Wyoming site
Posted on October 7, 2009 at 7:19 amA franchisee of Hendersonville-based Boomerang Hotels has opened the company’s first location in Wyoming. Boomerang, which in 2006 acquired the GuestHouse brand from ShoLodge and rebranded a year ago, runs more than 70 hotels from Georgia to Washington.
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Analyst move doesn’t help Gaylord
Posted on September 30, 2009 at 1:58 pm
Despite a 35 percent price target hike by an analyst at JMP Securities, Gaylord Entertainment shares (Ticker: GET) are clawing their way back from a very weak opening hour this morning, when they fell more than 5 percent. JMP’s Will Marks says the stock, which he rates ‘market outperform,’ is now worth $27, up from his previous target of $20.
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Gaylord up on Goldman target tweak
Posted on September 29, 2009 at 2:45 pmShares of Gaylord Entertainment (Ticker: GET) and a number of other hotel operators had a nice Tuesday after Goldman Sachs analyst Steven Kent lifted his price targets and said the next economic upswing will bring more people and higher prices.
SEE ALSO: Kent’s call earlier this year that excluded Gaylord
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Nashville’s hotel market still among nation’s strongest
Posted on September 28, 2009 at 9:04 amThe latest round of statistics from Smith Travel Research shows Nashville’s hotels saw their average daily rate fall 8 percent in the week from Sept. 13-19. That was the fourth-best number in the country and in line with numbers from earlier this year.
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Jamison Bedding eyes China growth
Posted on at 8:18 am
Venerable local mattress manufacturer Jamison Bedding has found a distribution partner to help it crack the Chinese travel market as well as its potentially massive emerging middle and upper classes.
Mattress exports are not common, as shipping costs add up and sleep sets are bulky items to ship. But targeted programs, like the one Jamison is launching, can achieve success, bedding observers say.
SEE ALSO: Plenty of big local names on China ECD trip
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Monster volume on down Gaylord day
Posted on September 24, 2009 at 12:24 pm
Shares of Gaylord Entertainment are down big for a second day in a row following the company’s announcement of a big capital raise. After falling more than 14 percent yesterday — a drop that erased the previous five days’ gains — Gaylord (Ticker: GET) is giving up another 6 percent.
The difference with yesterday is in the massive number of shares changing hands today: By noon, investors had traded almost 7.4 million shares, a whopping 20 times the stock’s daily average. Shares coming in as part of the offering are likely a big part of the story, but there’s a good chance short sellers are having their way, too. Yesterday, they accounted for about 80 percent Gaylord’s volume, according to one market watcher.
UPDATE at 3: 41 p.m.: Gaylord Thursday volume ending up totaling almost 12 million. The stock recovered slightly during late regular trading, but is giving up another 3 percent after hours and is now trading at $20.08.
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Gaylord names its price
Posted on at 8:23 am
The hotel operator is moving forward quickly with its stock and convertible bond offerings. The Nashville-based company will market up to 6.9 million shares at $21.80 — where they ended Wednesday after investors took them down more than 14 percent — and pay 3.75 percent on its new debt.
The latter number is 300 basis points below the rate on the debt Gaylord will pay off with this offering’s proceeds. The convertibles’ strike price is $27.25, a price that Gaylord shares (Ticker: GET) last traded at in October 2008.
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Gaylord shrugs off downgrade
Posted on September 22, 2009 at 2:10 pm
Gaylord Entertainment investors have quickly digested a downgrade Monday from Jeff Donnelly at Wells Fargo Securities, who said the booking outlook is so hazy hotel stocks could fall 20 percent from here. Shares of Gaylord (Ticker: GET) are up more than 3 percent today and have risen 15 percent in the past week.
Somewhere in Irving, Texas, Robert Rowling is beginning to smile…
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Citi: No upside in Gaylord
Posted on September 16, 2009 at 7:53 amAnalysts at Citigroup have begun covering the hospitality sector, rating Nashville-based Gaylord Entertainmnent a ‘hold.’ Citi has a price target of $23 on the shares (Ticker: GET), which closed Monday trading at $22.18 and have doubled in 2009.
SEE ALSO: Some positives for hotel operators
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