Grand gains from the Grand Ole Opry?

"The Grand Old Opry's owner is sparkling after a billionaire buys a big stake," says Bill Martin in his top-notch advisory service, BullMarket.com.

He notes, "TRT Holdings, an investment vehicle for Robert Rowling. has quietly taken a 10%+ stake in Gaylord Entertainment (NYSE: GET, becoming its largest shareholder."

"The latest buys came as shares of the $1 billion market cap company hit a multi-year low. Rowling's firm bought more than 608,000 shares of Gaylord at $20.44, increasing its holdings to 4.693 million shares, or an 11.49% stake.

"Nashville-based Gaylord owns and operates hotel properties, including the Gaylord Opryland Resort and Convention Center in Nashville, Tennessee and the Gaylord Palms Resort and Convention Center in Kissimmee, Florida.

"The company also owns and operates the Radisson Hotel at Opryland and the famous Grand Ole Opry in Nashville. Other business include a Nashville radio station, a paddle wheel showboat, performance venues, a golf course located near the Opryland complex, and a corporate events production company.

"With a projected net worth of $6.2 billion, Rowling was #158 on the latest Forbes list of the World's Billionaires. The press-shy Rowling rarely pops up as a major shareholder in a public company, and has only done so three times in recent years, including Gaylord.

"At heart, Rowling is a dealmaker who sticks to businesses he knows. Rowling is also involved in real estate development in the Dallas area, through both TRT Holdings and Omni Hotels.

"Shares of Gaylord are down nearly 43% year-to-date, but Rowling's disclosure sparked a swift rebound from the five-year low of $19.30. Gaylord hit an all-time high of $59.89 in August 2007.

"The company announced first quarter 2008 results on May 1st, posting a loss from continuing operations of $6.8 million, or 17 cents per share, compared to a profit of $700,000, or 2 cents per share, a year earlier. Revenues increased 7.1% to $195.2 million, coming in slightly ahead of the $193.9 million consensus.

"GET's financial performance during the first quarter was solid and in line with our expectations. Gaylord ended the first quarter of 2008 with $17.1 million in cash and $1.165 billion in long-term debt.

"The company had $409.3 million from a $1 billion credit facility that it had yet to tap. Gaylord bought back 656,700 shares for $20 million during the quarter and ended the period with $80 million left on a repurchase authorization.

"Moving forward, Gaylord said it expected total consolidated cash flows of $206 million to $230 million for FY08, and RevPAR growth of 4.5% to 7.0%. The cash flow guidance took a -$5M haircut from a previous outlook issued by the company.

"Investors should be aware that a complete turn for the hospitality industry isn't likely until the broader economy shows more strength. For those investors with a long-term outlook, however, now is the time to look at quality companies that have been beaten down.

"Rowling's knowledge of the hospitality industry, and his willingness to take a big stake in Gaylord, shows real faith in the company's long term prospects and is certainly a factor to weigh in deciding whether to invest."