Gaylord CEO Blasts HREC Study

October 17 00:00 2011

New York, October 16 ( – The Chairman and CEO of Global Entertainment Co., Colin Reed has written to the Colorado Office of Economic Development and International Trade on Thursday in which he has blasted a study conducted by Hospitality Real Estate Counselors (HREC) that was presented on  presented Tuesday.

HREC had said in its study that the proposed construction of Global Entertainment’s $800 million, 1,500-room Gaylord hotel and conference center would drain $186 million out of the Denver-area economy over the first four years of its operations. It further stated that this amount would come out of the loss of nearly 400,000 room nights at existing hotels to the new hotel as well as restaurant and retail spending that would no longer come to downtown Denver.

HREC officials also questioned many of the assumptions made by Gaylord leaders and clarified that the demand for non-group business at its facility was highly overstated. HREC CEO Mike Cahill said he had very conservatively assumed that only one-third of the business of other hotels would be stolen by the new Gaylord hotel.

Reed wrote in his letter that HREC made several “leaps of faith” regarding its assumptions and that some of its numbers appear to have been “invented.” He added that HREC’s “presentation includes several extraordinary assumptions which appear to have been designed to cause shock and anger,” He also said that only about 5 percent of hotel business and revenue would be shifted from existing facilities to the new hotel.