Posted 11/19/2008 - 9:33:15 AM
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NASHVILLE, TN—Gaylord Entertainment has decided to pull the plug on its plans to develop a resort and convention hotel in Chula Vista, CA. The company cited prolonged planning and approval processes, a complicated regulatory and legal structure and excessive off-site infrastructure costs as the reasons for the decision.
Earlier this year, Gaylord pulled out of a proposed acquisition and redevelopment of the Westin La Cantera Resort in San Antonio. However, the company has more recently entered into a land purchase agreement in Mesa, AZ, where it wants to develop a resort and convention hotel.
Regarding the San Diego-area Chula Vista project, Gaylord further stated that the deteriorating economy was not a significant factor in deciding to end the project. It stated that during the past 18 months the project’s risks became more pronounced.
Because it has pulled out of the Chula Vista project, Gaylord will be taking a non-cash impairment charge of approximately $5 million in the fourth quarter for costs incurred to date.
This decision regarding the Chula Vista project has no bearing on Gaylord’s other development initiatives, according to the company.
