Gaylord Entertainment is terminating plans to develop a resort and convention hotel in Chula Vista, Calif.
"We are very disappointed to have made this decision since the greater San Diego region is such an important convention market," said Colin Reed, Gaylord Entertainment's CEO.
Prolonged planning and approval processes, a complicated regulatory and legal structure and excessive off-site infrastructure costs contributed to the decision, the company said.
"Over the last year to 18 months, this project has become much more complicated and risky as infrastructure costs escalated and the time line for the hotel was extended by the very complicated and prolonged approval process," Reed said. "While many will likely attribute this announcement to the rapidly deteriorating economy, the fact is that the complexity and costs of the project were the main drivers of this decision."
Gaylord said it will take a non-cash impairment charge of approximately $5 million in the fourth quarter for costs incurred to-date on the Chula Vista project.
The decision to scrap the Chula Vista project has no bearing on Gaylord's other announced developments, said the company
In April, Gaylord terminated its agreement to purchase the Westin La Cantera Resort in San Antonio, blaming the economy and the state of the capital markets. In addition to the proposed $252.5 million purchase price, the company had planned $250 million in upgrades.