2000 ANNUAL REPORT Hospitality Music, Media Other & Attractions & Entertainment Interests General Jackson Showboat Acuff-Rose Music Publishing Bass Pro Shops Grand Ole Opry Tours BellSouth Acuff Theatre Nashville Predators Music City Queen Corporate Magic Opry Mills Opryland Hotel Nashville Gaylord Cable Networks Opryland Hotel Florida Gaylord Program Services Opryland Hotel Texas GET Management Opryland River Taxis Grand Ole Opry Radisson Hotel at Opryland Oklahoma RedHawks Springhouse Golf Club Ryman Auditorium Wildhorse Saloon Word Entertainment WSM-AM, Nashville WSM-FM, Nashville WWTN-FM, Nashville

About the company Gaylord Entertainment (NYSE:GET) is a diversified entertainment company operating in two business groups: Hospitality & Attractions, and Music, Media & Entertainment. Among its properties are the Grand Ole Opry, the longest-running live radio show in the world; the Opryland Hotel Nashville, the world’s largest combined hotel and convention center under one roof; radio stations WSM-AM, WSM-FM, and WWTN-FM; Acuff-Rose Music Publishing; and Word Entertainment. The Opryland Hotel Florida is scheduled to open in February, 2002, and the Opryland Hotel Texas is targeted to open in 2003. Corporate Data GAYLORD ENTERTAINMENT COMPANY Financial Highlights Board of Directors Management Form 10-K Edward L. Gaylord E.K. Gaylord II* A copy the company’s annual report to the (In thousands, except per share data) 2000 1999 % change Chairman Emeritus, Chairman of the Board Securities and Exchange Commission on Form 10-K may be obtained without charge by writing Revenues Gaylord Entertainment Company Dennis J. Sullivan, Jr.* to the company’s offices, Attn: J. Russell Worsham, Vice President, Investor and Financial Relations. Hospitality and attractions $ 256,722 $ 257,709 (0.4) Chairman and Chief Executive Officer, President and Chief Executive Officer** The Oklahoma Publishing Company Annual Meeting Music, media and entertainment 257,594 269,637 (4.5) The annual meeting of stockholders will be E.K. Gaylord II Hospitality & Attractions on May 3, 2001, at 10 a.m. at the Corporate and other 64 5,294 (98.8) Chairman of the Board, David B. Jones* Opryland Hotel, 2800 Opryland Drive, Total revenues $ 514,380 $ 532,640 (3.4) Gaylord Entertainment Company President, Opryland Hospitality Group Nashville, Tennessee. Market Information Operating cash flow (a) President and Director, Glenn R. Malone Hospitality and attractions $ 70,202 $ 63,785 10.1 The Oklahoma Publishing Company The Common Stock of Gaylord Entertainment is Senior Vice President–Operations and CFO listed on the New York Stock Exchange under Music, media and entertainment (49,826) 3,348 - Martin C. Dickinson Opryland Hospitality Group the symbol GET. The approximate number of record holders of the company’s Common Stock Senior Vice President (retired), Corporate and other (29,282) (19,223) (52.3) C. Raymond Waters on March 12, 2001, was 2,878. Scripps Bank Total operating cash flow $ (8,906) $ 47,910 - Senior Vice President and General Manager, Stock Price and Dividend Information Christine Gaylord Everest Opryland Hotel and Attractions The table below sets forth the high and low sales Operating income (loss) Vice President and Director, prices for the company’s Common Stock and the amount of cash dividends paid per share of Hospitality and attractions $ 43,053 $ 38,270 12.5 The Oklahoma Publishing Company Music, Media & Entertainment Common Stock for each quarter in 1999. In Music, media and entertainment (75,295) (16,962) (343.9) Carl W. Kornmeyer* February 2000, the Board of Directors voted to Craig L. Leipold discontinue the payment of dividends. Corporate and other (35,119) (25,972) (35.2) Chairman and Governor, President, Nonrecurring items (127,734) (13,562) - Music, Media & Entertainment Nashville Predators (NHL) 1999 High Low Dividend Total operating income (loss) $ (195,095) $ (18,226) - Ambassador Joe M. Rodgers Jerry O. Bradley 1st Quarter $31.13 $24.25 $0.20 Chairman, President, Acuff-Rose Music Publishing 2nd Quarter 33.00 23.38 0.20 The JMR Group Stephen G. Buchanan 3rd Quarter 31.44 28.31 0.20 Net income (loss) $ (153,470) $ 349,792 - Mary Agnes Wilderotter President, Grand Ole Opry Group 4th Quarter 33.06 28.25 0.20 Net income (loss) per share, assuming dilution $ (4.60) $ 10.53 - President and Chief Executive Officer, Mark A. Floyd Average shares outstanding, assuming dilution 33,389 33,213 0.5 2000 High Low Wink Communications Senior Vice President and COO/CFO, 1st Quarter $30.44 $24.50 Howard L. Wood Music, Media & Entertainment 2nd Quarter 27.38 20.25 Balance sheet data Co-Founder and Director, Malcolm L. Mimms, Jr. 3rd Quarter 28.00 19.50 Total assets $ 1,939,553 $ 1,732,384 12.0 Charter Communications President, Word Entertainment 4th Quarter 25.50 19.31 Total debt 197,429 310,123 (36.3) Cynthia H. Wilson Executive Offices Secured forward exchange contract 613,054 - - President, Gaylord Cable Networks Independent Accountants One Gaylord Drive Total stockholders' equity 727,865 961,159 (24.3) Arthur Andersen LLP Nashville, Tennessee 37214 Corporate Nashville, Tennessee 615.316.6000 Roderick F. Connor, Jr.* Senior Vice President and Legal Counsel Transfer Agent (a) Operating income plus depreciation,amortization and nonrecurring items Chief Administrative Officer Sherrard & Roe, PLC SunTrust Bank, Atlanta Nashville, Tennessee 58 Edgewood Avenue, Room 225 Denise Wilder Warren* Thomas J. Sherrard Atlanta, Georgia 30303 Senior Vice President and Secretary, Gaylord Entertainment Company 800.568.3476 Chief Financial Officer Eric A. Westin Senior Vice President, Development

* Executive Officers ** On an Interim Basis

8 1 Gaylord Entertainment Company Gaylord Entertainment Company LETTER TO SHAREHOLDERS

around the world. MusicCountry, formerly known as Country Chesney, Aaron Tippen, Skip Ewing and Dean Dillon. Music Television International, features a broad range of The company’s ongoing strategic review led to several changes Fellow Shareholders: music genres, programming series, specials and documentaries in the Music, Media & Entertainment Group. In November, oper- 2000 was a challenging year for our company. It was a year of unanticipated and covering the lives and careers of today's celebrated music ations at the Wildhorse Saloon in Orlando were discontinued. extraordinary changes. Those changes led to serious examination of our operations and, stars. MusicCountry is now available to 8 million full-time The Orlando facility had been a part of an earlier strategy to very quickly, to decisive actions. In a trying time, our company responded remarkably. We subscribers from Australia to Argentina to Brazil. develop Wildhorse Saloons in a number of cities. As the compa- emerged with a sharp focus on our core businesses and a multi-year plan for their success. In April 2000, we acquired Corporate Magic Inc., a Dallas- ny witnessed weakness in the themed restaurant industry, the Our core businesses – ones such as Acuff-Rose Music Publishing, the Grand Ole Opry Group, based company specializing in the production of creative events decision was made not to implement that strategy, and the most the Opryland Hotels, Word Entertainment and WSM/WTN Radio – are well established. They and the development of strategic logical course of action was to dis- give us competitive advantages in their respective fields, and they are the ones that warrant our business content for corporate continue our involvement in this efforts. They are the ones where we believe the prospects for growth are strong. In order to audiences. Corporate Magic unprofitable Orlando venture. concentrate on them, we have streamlined the company by divesting certain assets, reducing our workforce and returning to our roots. enhances our potential to In December, another significant We began 2000 deeply immersed in a development strategy with our Opryland Hotel Florida and Opryland Hotel Texas increase our share of the growing move was to exit our centralized projects. Also, we were deep into the development of an Internet initiative to enhance our Christian music presence. Finally, corporate entertainment market- Internet initiative, Gaylord Digital. we were funding growth projects for our international cable operations under CMT International and funding the development of place, and it represents additional Two major components of this ini- a country music record label. All of these programs were capital intensive and required substantial investments of cash. services that we can provide to tiative, MusicForce.com and However, a number of our investment initiatives, particularly in the Internet world, proved unfruitful. These initiatives, our convention guests at our Lightsource.com, were sold. Like combined with weakness at our Christian music business, led to the year’s poor financial performance. Opryland Hotels. Corporate many other Internet-related Following the unplanned departure of the company’s then president and chief executive officer, your board and senior Magic is regularly honored with investments, Gaylord Digital did management began an in-depth review of each of our businesses and of our strategic direction. That review led to our decision national and international awards not meet its projected growth to dispose of Gaylord Digital (our Internet division), the Wildhorse Saloon Orlando and the Opryland KOA Campground. We also for its corporate events that targets and became a significant placed our plans to develop a country music label on indefinite hold. have included the Coca-Cola cash drain on the company We addressed operating problems at Word Entertainment by replacing the president of this unit, imposing additional accounting Centennial Celebration and the as a whole. oversight and streamlining the business to return it to profitability. We reduced our company-wide workforce by approximately IBM Global Meeting. Late in Artists Vince Gill and Little Jimmy Dickens represent the diverse appeal celebrated Finally, Gaylord Films, the 375 people. Furthermore, we realigned our operations to enhance efficiencies, organizing into two operating units–Hospitality & 2000, Corporate Magic and during the 75th anniversary of the Grand Ole Opry. Pandora film library and distribu- Attractions, and Music, Media & Entertainment. Subsequent to year-end, we sold Gaylord Films, Pandora Films, Gaylord Sports Opryland Productions were combined into an integrated group tion company, golf event producer Gaylord Event Television, pro- Management, Gaylord Event Television and Gaylord Production Company. operating under the Corporate Magic name and leadership. fessional golf manager Gaylord Sports Management, and the Although these decisions were difficult, we believe they were necessary to ensure the financial health and future success of the The Acuff-Rose Music Publishing catalog continued building film and television catalogs of Gaylord Production Company company. While we have not accomplished all of our realignment goals, we are committed to our plan and intend for each of our its song portfolio and had two Number 1 singles, "The Best Day," were sold to the Oklahoma Publishing Company early in 2001. businesses to generate positive operating cash flow. performed by George Strait, and "Kiss This," performed by Aaron Shedding all of these non-core assets is expected to facilitate the Despite our numerous challenges, 2000 also provided a number of bright spots. The 2,883-room Opryland Hotel Nashville Tippin. The group had 134 songs on 86 of the top-selling country streamlining of Gaylord Entertainment. continued its historical success as a meetings and conventions destination. The hotel produced double-digit growth in operating cash music CDs of 2000. Acuff-Rose boasts such writers as Kenny flow, while operating cash flow margins improved by 3.6 percentage points–a substantial accomplishment for a hotel of its size. Rooms revenue per available room grew 2%, and the hotel has more than 2.1 million contracted room nights into the year 2020. Construction of our newest property, the Opryland Hotel Florida, continues on schedule and on budget. The grand opening is slated for February 2, 2002, at 2:02 pm. The pre-booking pace at this property is phenomenal. Early in 2001, we had definite con- tracts for more than 250,000 room nights in 2002 (that’s more than half of the available first-year rooms, with more than

2 7 Gaylord Entertainment Company Gaylord Entertainment Company MUSIC,MEDIA &ENTERTAINMENT

Both WSM Radio and the WSM Grand Ole Opry celebrated revenues, 2000 was a financially challenging year. As a result, we their 75th anniversaries in 2000. As a prelude to the primary made difficult decisions and significant changes to Word’s lead- a year to go before opening). In total, the Florida sales team has plans. Also, in early May, we were pleased to be joined by Denise anniversary events, the Opry unveiled a spectacular new stage ership and operating strategy. These included the departure of definite contracts for approximately 800,000 room nights out Wilder Warren as senior vice president and chief financial officer. set that honored the traditions of the show while incorporating Word’s long-time president, who was replaced by respected to the year 2011. The Opryland Hotel Texas, which is to be Denise was formerly director and senior equity research analyst contemporary lighting and video techniques. Through the entertainment industry veteran Malcolm Mimms, the consolida- located near DFW International Airport, also is generating with Merrill Lynch & Co. in New York, following the hospitality, summer and early fall, the Opry sponsored a successful series of tion of artist rosters and staffs of Word Records and Myrrh excitement and interest in the meetings and conventions industry. timeshare and gaming industries. She is a welcome addition to outdoor festivals designed to attract new fans. The official Records, and a thorough management review of Word’s business The WSM Grand Ole Opry celebrated its 75th anniversary our senior management staff and already proved her value celebration in October played to full-house audiences and operations. with performances by Garth Brooks, Dolly Parton, Vince Gill, Alan during a critical period in the company’s development. garnered considerable media attention. As part of WSM’s own We are confident that the changes at Word will have a Jackson, George Jones, Loretta Importantly, we have been celebration, the station began streaming its signal on the positive impact in the near term, and we are making every Lynn, Reba McEntire and many actively engaged in a search Internet (www.wsmonline.com), meaning that you can listen effort to return Word to profitability. Specific steps being taken others. Our Opry stars played for a new CEO and expect to anywhere, anytime. include the expansion of product lines into emerging, untapped to packed houses and enjoyed announce our decision soon. Over the past 50 years, markets, more effective working very high television ratings In summary, 2000 presented Word Entertainment has capital management, continued with a two-hour birthday us many challenges but gave grown to be the second review of less profitable areas special broadcast on CBS us the opportunity to refocus largest Christian music com- of the business and increased on Thanksgiving. our strategic plan. We expect pany in the world. It has a operational efficiencies. On May 11, 2000, the long- 2001 to be a transition year as number of key competitive Early in 2000, we announced a awaited Opry Mills shopping we continue to streamline our strengths, including more partnership with MegaCable, and entertainment complex company, complete construc- than 75,000 master record- Mexico’s second largest cable The new Cascades lobby is a highlight of Opryland Hotel Nashville opened. The property, adjacent tion of the Opryland Hotel ings representing one of the operator. As a result of this part- to the Opryland Hotel Nashville, has been a great success and Florida and intensify our efforts to restore each of our business largest and most valuable nership, Gaylord Cable Networks attracted almost 10 million visitors by the end of the year. Our units to positive operating cash flow. We expect to see significant catalogs in the Christian is working to expand Video Rola, a Point of Grace is among Word’s platinum-selling Christian music acts. one-third (non-cash) investment already has generated a return to cash flow growth in 2002 upon the successful opening of the music industry. Word is a mar- 24-hour video channel featuring Gaylord Entertainment. Opryland Hotel Florida. ket leader in artist and product development, and in addition to regional Mexican music, into U.S. markets and is responsible for Finally, we wish to recognize several people who played Gaylord Entertainment has irreplaceable assets and having established platinum-selling artists such as Jaci Velasquez Video Rola’s distribution, sales and marketing in the U.S. It also important roles in a very challenging year. First, we extend a holds significant competitive advantages in several of our and Point of Grace, it had several promising new acts in 2000 provides exposure for American country music through special special thank-you to Dennis J. Sullivan, Jr., who served as our business units. We are pleased to have you as our partners. Our including Nicole C. Mullen, Mark Schultz and Rachael Lampa. programming blocks for Video Rola to air in Mexico and in other president and CEO on an interim basis. Dennie tirelessly pro- talented employees are the backbone of our company and are Word also is the world’s largest print music publisher of Christian countries outside the U.S. vided his leadership and guidance and successfully moved dedicated to the company’s success. Thank you for your support music products such as choral works, folios, songbooks, sheet Shortly after the formation of this partnership, Gaylord Cable Gaylord Entertainment forward. We are indebted to him for his as we put 2000 behind us and look forward to a bright future. music and hymnals, and it holds the top spot in the Christian Networks announced the launch of a new global brand, service to the company. music song publishing marketplace. MusicCountry, offering viewers a broad mix of country, rock, folk We also recognize two company veterans, David Jones, Even though Word is our second largest business in terms of and "roots" music programming tailored to various regions president of the Hospitality & Attractions Group, and Carl Kornmeyer, president of the Music, Media & Entertainment E.K. Gaylord II Group, who provided essential leadership in making difficult Chairman of the Board changes, while remaining focused on executing their business

6 3 Gaylord Entertainment Company Gaylord Entertainment Company HOSPITALITY &ATTRACTIONS

The Hospitality & Attractions Group continues to be the most convention and exhibition industry. was completely remodeled, and nearly 200 rooms as well as the property, with construction scheduled to begin later this year. profitable part of the company. The group is anchored Our competitive strengths include our reputation for adjacent guest corridors were completely renovated. The room We continued our due diligence on the Opryland Hotel by the Opryland Hotel Nashville and will be joined by the top-quality services and facilities. The Opryland Hotel Nashville renovations included new furniture, carpet, ceilings, bathroom Potomac project, which was announced early in 2000. Although Opryland Hotel Florida in 2002 and the Opryland Hotel is a state-of-the-art hotel and convention complex that features tile and fixtures and upgraded telephone wiring to allow for in- still subject to financing and board approval, we believe this Texas in 2003. the highest ratio of meeting space to guest rooms of any room Internet access. Another improvement in service to our project represents an excellent long-term opportunity for us to The Opryland Hotels continue our efforts to build the convention hotel in the United States, diverse shops, numerous convention guests was bringing familiar names such as Pizza further develop the Opryland brand in select U.S. markets. Opryland brand within the hospitality industry and are an restaurants and live entertainment, all of which help to differen- Hut, Chick-Fil-A, Ben & Jerry’s and Godiva to the property. During 2000, we completed extensive renovations to the indication of the expertise we developed from operating one of tiate it from other convention hotels. These features result in Upcoming events at the Nashville hotel include a Titanic former Inn at Opryland next door to the Opryland Hotel Nashville the world’s top hotel and convention center properties. high levels of repeat business. As a result, we continually build exhibit beginning in May 2001 that will feature one-of-a-kind arti- and re-flagged it as the Radisson Hotel at Opryland. All 303 We believe–and our strong relationships with facts recovered from the guest rooms have been pre-opening bookings meeting planners and Titanic wreck site two renovated, as well as the demonstrate–that we professional trade associations miles beneath the surface meeting space at the can increase our hospi- that we believe will contribute of the North Atlantic. The property. The restaurant tality industry market to our future success. display will include at the property re-opened share by expanding Another of our competitive recently recovered artifacts as an Applebee’s fran- into additional "desti- strengths is the "one-stop never before made chise in late 2000, nation" cities. New shopping" that we offer to available for public viewing. providing our guests with locations not only meeting planners. Our The exhibit is another additional quality services. enhance our opportu- high-quality meeting and example of how we are The General Jackson nities to introduce the exhibition facilities, conven- committed to bringing showboat, which anchors Opryland brand to tion services, destination memorable, top-quality our attractions businesses, new customers, but also Opry Mills shopping and entertainment complex opened on schedule in May. management, transportation, entertainment experiences Opryland Hotel Florida is on schedule to open in February 2002 had a remarkable year. they meet the demand for multi-year, multi-property entertainment and other services provide our target market with to our patrons and guests. Due to strong management and stringent cost controls, the boat contracts with existing clients. a seamless, integrated solution to their needs. Progress continues on the Opryland Hotel Florida in Osceola saw significant improvement in its operating results. Revenues Our existing facilities and the properties in development are The Hospitality & Attractions Group was right on target with its County, Florida, just outside of Orlando and less than five min- increased 4. 5%, while operating cash flow doubled over the prior year. distinctive, multi-sensory entertainment environments under the financial performance during the year. The Opryland Hotel utes from the main gate of the Walt Disney World® Resort. The Finally, the Opry Mills shopping and entertainment complex signature Opryland atrium. The properties’ designs reflect the Nashville achieved significant improvement in operating project is now more than 50% complete and is on schedule and opened on schedule in May and welcomed nearly 10 million culture, history and nature of their respective locations. For margins during the year as the hotel continues to improve its effi- on budget for its grand opening on February 2, 2002. Advance visitors by year’s end. This drawing power compares very instance, the Williamsburg look of the Opryland Hotel Nashville ciency. This margin improvement led to a 10.7% increase in oper- sales for the property continue to be very strong, with more than favorably to the 1.8 million guests who visited the Opryland fits comfortably in its mid-South setting, while aspects of the ating cash flow for the property during 2000. Average daily room 50% of 2002’s available rooms under contract as of this writing. theme park in its final season in 1997. Even though Opry Mills is Opryland Hotel Florida will evoke the feel of St. Augustine, rates grew 4.9% to $143.86 in 2000, while occupancy was 75.9%, a We broke ground Texas-style on the Opryland Hotel Texas on in the smallest market of the 12 Mills retail properties, Opry Mills Key West and the Everglades. The Opryland Hotel Texas will slight decrease from the prior year. Among the hotel’s many June 7, 2000, with a colorful ceremony at the hotel site in ranks among the highest in terms of sales per square foot. We reflect the heritage of the Lone Star State. Our goal in each honors in 2000 was a Southern Living Reader’s Choice award. Grapevine, near the Dallas-Fort Worth International Airport. In are pleased to welcome Opry Mills to the family. location is to provide unforgettable, distinctive experiences with The Nashville hotel also made progress on significant renova- true Texas style, we branded the site with the hotel’s "Texas star" the special Opryland touch that makes us leaders in the meetings, tions and enhancements of its facilities. The Cascades Lobby logo. We continue our site, design and development work on the

4 5 Gaylord Entertainment Company Gaylord Entertainment Company HOSPITALITY &ATTRACTIONS

The Hospitality & Attractions Group continues to be the most convention and exhibition industry. was completely remodeled, and nearly 200 rooms as well as the property, with construction scheduled to begin later this year. profitable part of the company. The group is anchored Our competitive strengths include our reputation for adjacent guest corridors were completely renovated. The room We continued our due diligence on the Opryland Hotel by the Opryland Hotel Nashville and will be joined by the top-quality services and facilities. The Opryland Hotel Nashville renovations included new furniture, carpet, ceilings, bathroom Potomac project, which was announced early in 2000. Although Opryland Hotel Florida in 2002 and the Opryland Hotel is a state-of-the-art hotel and convention complex that features tile and fixtures and upgraded telephone wiring to allow for in- still subject to financing and board approval, we believe this Texas in 2003. the highest ratio of meeting space to guest rooms of any room Internet access. Another improvement in service to our project represents an excellent long-term opportunity for us to The Opryland Hotels continue our efforts to build the convention hotel in the United States, diverse shops, numerous convention guests was bringing familiar names such as Pizza further develop the Opryland brand in select U.S. markets. Opryland brand within the hospitality industry and are an restaurants and live entertainment, all of which help to differen- Hut, Chick-Fil-A, Ben & Jerry’s and Godiva to the property. During 2000, we completed extensive renovations to the indication of the expertise we developed from operating one of tiate it from other convention hotels. These features result in Upcoming events at the Nashville hotel include a Titanic former Inn at Opryland next door to the Opryland Hotel Nashville the world’s top hotel and convention center properties. high levels of repeat business. As a result, we continually build exhibit beginning in May 2001 that will feature one-of-a-kind arti- and re-flagged it as the Radisson Hotel at Opryland. All 303 We believe–and our strong relationships with facts recovered from the guest rooms have been pre-opening bookings meeting planners and Titanic wreck site two renovated, as well as the demonstrate–that we professional trade associations miles beneath the surface meeting space at the can increase our hospi- that we believe will contribute of the North Atlantic. The property. The restaurant tality industry market to our future success. display will include at the property re-opened share by expanding Another of our competitive recently recovered artifacts as an Applebee’s fran- into additional "desti- strengths is the "one-stop never before made chise in late 2000, nation" cities. New shopping" that we offer to available for public viewing. providing our guests with locations not only meeting planners. Our The exhibit is another additional quality services. enhance our opportu- high-quality meeting and example of how we are The General Jackson nities to introduce the exhibition facilities, conven- committed to bringing showboat, which anchors Opryland brand to tion services, destination memorable, top-quality our attractions businesses, new customers, but also Opry Mills shopping and entertainment complex opened on schedule in May. management, transportation, entertainment experiences Opryland Hotel Florida is on schedule to open in February 2002 had a remarkable year. they meet the demand for multi-year, multi-property entertainment and other services provide our target market with to our patrons and guests. Due to strong management and stringent cost controls, the boat contracts with existing clients. a seamless, integrated solution to their needs. Progress continues on the Opryland Hotel Florida in Osceola saw significant improvement in its operating results. Revenues Our existing facilities and the properties in development are The Hospitality & Attractions Group was right on target with its County, Florida, just outside of Orlando and less than five min- increased 4. 5%, while operating cash flow doubled over the prior year. distinctive, multi-sensory entertainment environments under the financial performance during the year. The Opryland Hotel utes from the main gate of the Walt Disney World® Resort. The Finally, the Opry Mills shopping and entertainment complex signature Opryland atrium. The properties’ designs reflect the Nashville achieved significant improvement in operating project is now more than 50% complete and is on schedule and opened on schedule in May and welcomed nearly 10 million culture, history and nature of their respective locations. For margins during the year as the hotel continues to improve its effi- on budget for its grand opening on February 2, 2002. Advance visitors by year’s end. This drawing power compares very instance, the Williamsburg look of the Opryland Hotel Nashville ciency. This margin improvement led to a 10.7% increase in oper- sales for the property continue to be very strong, with more than favorably to the 1.8 million guests who visited the Opryland fits comfortably in its mid-South setting, while aspects of the ating cash flow for the property during 2000. Average daily room 50% of 2002’s available rooms under contract as of this writing. theme park in its final season in 1997. Even though Opry Mills is Opryland Hotel Florida will evoke the feel of St. Augustine, rates grew 4.9% to $143.86 in 2000, while occupancy was 75.9%, a We broke ground Texas-style on the Opryland Hotel Texas on in the smallest market of the 12 Mills retail properties, Opry Mills Key West and the Everglades. The Opryland Hotel Texas will slight decrease from the prior year. Among the hotel’s many June 7, 2000, with a colorful ceremony at the hotel site in ranks among the highest in terms of sales per square foot. We reflect the heritage of the Lone Star State. Our goal in each honors in 2000 was a Southern Living Reader’s Choice award. Grapevine, near the Dallas-Fort Worth International Airport. In are pleased to welcome Opry Mills to the family. location is to provide unforgettable, distinctive experiences with The Nashville hotel also made progress on significant renova- true Texas style, we branded the site with the hotel’s "Texas star" the special Opryland touch that makes us leaders in the meetings, tions and enhancements of its facilities. The Cascades Lobby logo. We continue our site, design and development work on the

4 5 Gaylord Entertainment Company Gaylord Entertainment Company MUSIC,MEDIA &ENTERTAINMENT

Both WSM Radio and the WSM Grand Ole Opry celebrated revenues, 2000 was a financially challenging year. As a result, we their 75th anniversaries in 2000. As a prelude to the primary made difficult decisions and significant changes to Word’s lead- a year to go before opening). In total, the Florida sales team has plans. Also, in early May, we were pleased to be joined by Denise anniversary events, the Opry unveiled a spectacular new stage ership and operating strategy. These included the departure of definite contracts for approximately 800,000 room nights out Wilder Warren as senior vice president and chief financial officer. set that honored the traditions of the show while incorporating Word’s long-time president, who was replaced by respected to the year 2011. The Opryland Hotel Texas, which is to be Denise was formerly director and senior equity research analyst contemporary lighting and video techniques. Through the entertainment industry veteran Malcolm Mimms, the consolida- located near DFW International Airport, also is generating with Merrill Lynch & Co. in New York, following the hospitality, summer and early fall, the Opry sponsored a successful series of tion of artist rosters and staffs of Word Records and Myrrh excitement and interest in the meetings and conventions industry. timeshare and gaming industries. She is a welcome addition to outdoor festivals designed to attract new fans. The official Records, and a thorough management review of Word’s business The WSM Grand Ole Opry celebrated its 75th anniversary our senior management staff and already proved her value celebration in October played to full-house audiences and operations. with performances by Garth Brooks, Dolly Parton, Vince Gill, Alan during a critical period in the company’s development. garnered considerable media attention. As part of WSM’s own We are confident that the changes at Word will have a Jackson, George Jones, Loretta Importantly, we have been celebration, the station began streaming its signal on the positive impact in the near term, and we are making every Lynn, Reba McEntire and many actively engaged in a search Internet (www.wsmonline.com), meaning that you can listen effort to return Word to profitability. Specific steps being taken others. Our Opry stars played for a new CEO and expect to anywhere, anytime. include the expansion of product lines into emerging, untapped to packed houses and enjoyed announce our decision soon. Over the past 50 years, markets, more effective working very high television ratings In summary, 2000 presented Word Entertainment has capital management, continued with a two-hour birthday us many challenges but gave grown to be the second review of less profitable areas special broadcast on CBS us the opportunity to refocus largest Christian music com- of the business and increased on Thanksgiving. our strategic plan. We expect pany in the world. It has a operational efficiencies. On May 11, 2000, the long- 2001 to be a transition year as number of key competitive Early in 2000, we announced a awaited Opry Mills shopping we continue to streamline our strengths, including more partnership with MegaCable, and entertainment complex company, complete construc- than 75,000 master record- Mexico’s second largest cable The new Cascades lobby is a highlight of Opryland Hotel Nashville opened. The property, adjacent tion of the Opryland Hotel ings representing one of the operator. As a result of this part- to the Opryland Hotel Nashville, has been a great success and Florida and intensify our efforts to restore each of our business largest and most valuable nership, Gaylord Cable Networks attracted almost 10 million visitors by the end of the year. Our units to positive operating cash flow. We expect to see significant catalogs in the Christian is working to expand Video Rola, a Point of Grace is among Word’s platinum-selling Christian music acts. one-third (non-cash) investment already has generated a return to cash flow growth in 2002 upon the successful opening of the music industry. Word is a mar- 24-hour video channel featuring Gaylord Entertainment. Opryland Hotel Florida. ket leader in artist and product development, and in addition to regional Mexican music, into U.S. markets and is responsible for Finally, we wish to recognize several people who played Gaylord Entertainment has irreplaceable assets and having established platinum-selling artists such as Jaci Velasquez Video Rola’s distribution, sales and marketing in the U.S. It also important roles in a very challenging year. First, we extend a holds significant competitive advantages in several of our and Point of Grace, it had several promising new acts in 2000 provides exposure for American country music through special special thank-you to Dennis J. Sullivan, Jr., who served as our business units. We are pleased to have you as our partners. Our including Nicole C. Mullen, Mark Schultz and Rachael Lampa. programming blocks for Video Rola to air in Mexico and in other president and CEO on an interim basis. Dennie tirelessly pro- talented employees are the backbone of our company and are Word also is the world’s largest print music publisher of Christian countries outside the U.S. vided his leadership and guidance and successfully moved dedicated to the company’s success. Thank you for your support music products such as choral works, folios, songbooks, sheet Shortly after the formation of this partnership, Gaylord Cable Gaylord Entertainment forward. We are indebted to him for his as we put 2000 behind us and look forward to a bright future. music and hymnals, and it holds the top spot in the Christian Networks announced the launch of a new global brand, service to the company. music song publishing marketplace. MusicCountry, offering viewers a broad mix of country, rock, folk We also recognize two company veterans, David Jones, Even though Word is our second largest business in terms of and "roots" music programming tailored to various regions president of the Hospitality & Attractions Group, and Carl Kornmeyer, president of the Music, Media & Entertainment E.K. Gaylord II Group, who provided essential leadership in making difficult Chairman of the Board changes, while remaining focused on executing their business

6 3 Gaylord Entertainment Company Gaylord Entertainment Company LETTER TO SHAREHOLDERS

around the world. MusicCountry, formerly known as Country Chesney, Aaron Tippen, Skip Ewing and Dean Dillon. Music Television International, features a broad range of The company’s ongoing strategic review led to several changes Fellow Shareholders: music genres, programming series, specials and documentaries in the Music, Media & Entertainment Group. In November, oper- 2000 was a challenging year for our company. It was a year of unanticipated and covering the lives and careers of today's celebrated music ations at the Wildhorse Saloon in Orlando were discontinued. extraordinary changes. Those changes led to serious examination of our operations and, stars. MusicCountry is now available to 8 million full-time The Orlando facility had been a part of an earlier strategy to very quickly, to decisive actions. In a trying time, our company responded remarkably. We subscribers from Australia to Argentina to Brazil. develop Wildhorse Saloons in a number of cities. As the compa- emerged with a sharp focus on our core businesses and a multi-year plan for their success. In April 2000, we acquired Corporate Magic Inc., a Dallas- ny witnessed weakness in the themed restaurant industry, the Our core businesses – ones such as Acuff-Rose Music Publishing, the Grand Ole Opry Group, based company specializing in the production of creative events decision was made not to implement that strategy, and the most the Opryland Hotels, Word Entertainment and WSM/WTN Radio – are well established. They and the development of strategic logical course of action was to dis- give us competitive advantages in their respective fields, and they are the ones that warrant our business content for corporate continue our involvement in this efforts. They are the ones where we believe the prospects for growth are strong. In order to audiences. Corporate Magic unprofitable Orlando venture. concentrate on them, we have streamlined the company by divesting certain assets, reducing our workforce and returning to our roots. enhances our potential to In December, another significant We began 2000 deeply immersed in a development strategy with our Opryland Hotel Florida and Opryland Hotel Texas increase our share of the growing move was to exit our centralized projects. Also, we were deep into the development of an Internet initiative to enhance our Christian music presence. Finally, corporate entertainment market- Internet initiative, Gaylord Digital. we were funding growth projects for our international cable operations under CMT International and funding the development of place, and it represents additional Two major components of this ini- a country music record label. All of these programs were capital intensive and required substantial investments of cash. services that we can provide to tiative, MusicForce.com and However, a number of our investment initiatives, particularly in the Internet world, proved unfruitful. These initiatives, our convention guests at our Lightsource.com, were sold. Like combined with weakness at our Christian music business, led to the year’s poor financial performance. Opryland Hotels. Corporate many other Internet-related Following the unplanned departure of the company’s then president and chief executive officer, your board and senior Magic is regularly honored with investments, Gaylord Digital did management began an in-depth review of each of our businesses and of our strategic direction. That review led to our decision national and international awards not meet its projected growth to dispose of Gaylord Digital (our Internet division), the Wildhorse Saloon Orlando and the Opryland KOA Campground. We also for its corporate events that targets and became a significant placed our plans to develop a country music label on indefinite hold. have included the Coca-Cola cash drain on the company We addressed operating problems at Word Entertainment by replacing the president of this unit, imposing additional accounting Centennial Celebration and the as a whole. oversight and streamlining the business to return it to profitability. We reduced our company-wide workforce by approximately IBM Global Meeting. Late in Artists Vince Gill and Little Jimmy Dickens represent the diverse appeal celebrated Finally, Gaylord Films, the 375 people. Furthermore, we realigned our operations to enhance efficiencies, organizing into two operating units–Hospitality & 2000, Corporate Magic and during the 75th anniversary of the Grand Ole Opry. Pandora film library and distribu- Attractions, and Music, Media & Entertainment. Subsequent to year-end, we sold Gaylord Films, Pandora Films, Gaylord Sports Opryland Productions were combined into an integrated group tion company, golf event producer Gaylord Event Television, pro- Management, Gaylord Event Television and Gaylord Production Company. operating under the Corporate Magic name and leadership. fessional golf manager Gaylord Sports Management, and the Although these decisions were difficult, we believe they were necessary to ensure the financial health and future success of the The Acuff-Rose Music Publishing catalog continued building film and television catalogs of Gaylord Production Company company. While we have not accomplished all of our realignment goals, we are committed to our plan and intend for each of our its song portfolio and had two Number 1 singles, "The Best Day," were sold to the Oklahoma Publishing Company early in 2001. businesses to generate positive operating cash flow. performed by George Strait, and "Kiss This," performed by Aaron Shedding all of these non-core assets is expected to facilitate the Despite our numerous challenges, 2000 also provided a number of bright spots. The 2,883-room Opryland Hotel Nashville Tippin. The group had 134 songs on 86 of the top-selling country streamlining of Gaylord Entertainment. continued its historical success as a meetings and conventions destination. The hotel produced double-digit growth in operating cash music CDs of 2000. Acuff-Rose boasts such writers as Kenny flow, while operating cash flow margins improved by 3.6 percentage points–a substantial accomplishment for a hotel of its size. Rooms revenue per available room grew 2%, and the hotel has more than 2.1 million contracted room nights into the year 2020. Construction of our newest property, the Opryland Hotel Florida, continues on schedule and on budget. The grand opening is slated for February 2, 2002, at 2:02 pm. The pre-booking pace at this property is phenomenal. Early in 2001, we had definite con- tracts for more than 250,000 room nights in 2002 (that’s more than half of the available first-year rooms, with more than

2 7 Gaylord Entertainment Company Gaylord Entertainment Company Corporate Data GAYLORD ENTERTAINMENT COMPANY Financial Highlights Board of Directors Management Form 10-K Edward L. Gaylord E.K. Gaylord II* A copy the company’s annual report to the (In thousands, except per share data) 2000 1999 % change Chairman Emeritus, Chairman of the Board Securities and Exchange Commission on Form 10-K may be obtained without charge by writing Revenues Gaylord Entertainment Company Dennis J. Sullivan, Jr.* to the company’s offices, Attn: J. Russell Worsham, Vice President, Investor and Financial Relations. Hospitality and attractions $ 256,722 $ 257,709 (0.4) Chairman and Chief Executive Officer, President and Chief Executive Officer** The Oklahoma Publishing Company Annual Meeting Music, media and entertainment 257,594 269,637 (4.5) The annual meeting of stockholders will be E.K. Gaylord II Hospitality & Attractions on May 3, 2001, at 10 a.m. at the Corporate and other 64 5,294 (98.8) Chairman of the Board, David B. Jones* Opryland Hotel, 2800 Opryland Drive, Total revenues $ 514,380 $ 532,640 (3.4) Gaylord Entertainment Company President, Opryland Hospitality Group Nashville, Tennessee. Market Information Operating cash flow (a) President and Director, Glenn R. Malone Hospitality and attractions $ 70,202 $ 63,785 10.1 The Oklahoma Publishing Company The Common Stock of Gaylord Entertainment is Senior Vice President–Operations and CFO listed on the New York Stock Exchange under Music, media and entertainment (49,826) 3,348 - Martin C. Dickinson Opryland Hospitality Group the symbol GET. The approximate number of record holders of the company’s Common Stock Senior Vice President (retired), Corporate and other (29,282) (19,223) (52.3) C. Raymond Waters on March 12, 2001, was 2,878. Scripps Bank Total operating cash flow $ (8,906) $ 47,910 - Senior Vice President and General Manager, Stock Price and Dividend Information Christine Gaylord Everest Opryland Hotel and Attractions The table below sets forth the high and low sales Operating income (loss) Vice President and Director, prices for the company’s Common Stock and the amount of cash dividends paid per share of Hospitality and attractions $ 43,053 $ 38,270 12.5 The Oklahoma Publishing Company Music, Media & Entertainment Common Stock for each quarter in 1999. In Music, media and entertainment (75,295) (16,962) (343.9) Carl W. Kornmeyer* February 2000, the Board of Directors voted to Craig L. Leipold discontinue the payment of dividends. Corporate and other (35,119) (25,972) (35.2) Chairman and Governor, President, Nonrecurring items (127,734) (13,562) - Music, Media & Entertainment Nashville Predators (NHL) 1999 High Low Dividend Total operating income (loss) $ (195,095) $ (18,226) - Ambassador Joe M. Rodgers Jerry O. Bradley 1st Quarter $31.13 $24.25 $0.20 Chairman, President, Acuff-Rose Music Publishing 2nd Quarter 33.00 23.38 0.20 The JMR Group Stephen G. Buchanan 3rd Quarter 31.44 28.31 0.20 Net income (loss) $ (153,470) $ 349,792 - Mary Agnes Wilderotter President, Grand Ole Opry Group 4th Quarter 33.06 28.25 0.20 Net income (loss) per share, assuming dilution $ (4.60) $ 10.53 - President and Chief Executive Officer, Mark A. Floyd Average shares outstanding, assuming dilution 33,389 33,213 0.5 2000 High Low Wink Communications Senior Vice President and COO/CFO, 1st Quarter $30.44 $24.50 Howard L. Wood Music, Media & Entertainment 2nd Quarter 27.38 20.25 Balance sheet data Co-Founder and Director, Malcolm L. Mimms, Jr. 3rd Quarter 28.00 19.50 Total assets $ 1,939,553 $ 1,732,384 12.0 Charter Communications President, Word Entertainment 4th Quarter 25.50 19.31 Total debt 197,429 310,123 (36.3) Cynthia H. Wilson Executive Offices Secured forward exchange contract 613,054 - - President, Gaylord Cable Networks Independent Accountants One Gaylord Drive Total stockholders' equity 727,865 961,159 (24.3) Arthur Andersen LLP Nashville, Tennessee 37214 Corporate Nashville, Tennessee 615.316.6000 Roderick F. Connor, Jr.* Senior Vice President and Legal Counsel Transfer Agent (a) Operating income plus depreciation,amortization and nonrecurring items Chief Administrative Officer Sherrard & Roe, PLC SunTrust Bank, Atlanta Nashville, Tennessee 58 Edgewood Avenue, Room 225 Denise Wilder Warren* Thomas J. Sherrard Atlanta, Georgia 30303 Senior Vice President and Secretary, Gaylord Entertainment Company 800.568.3476 Chief Financial Officer Eric A. Westin Senior Vice President, Development

* Executive Officers ** On an Interim Basis

8 1 Gaylord Entertainment Company Gaylord Entertainment Company