Gaylord Entertainment, which earlier this year paid $12 million to abandon its planned purchase of the Westin La Cantera Resort in San Antonio, last week said it was terminating plans to develop a resort and convention hotel in Chula Vista, Calif.
Prolonged planning and approval processes, a complicated regulatory and legal structure and excessive off-site infrastructure costs contributed to the decision, the company said in a statement last week.
"We are very disappointed to have made this decision, since the greater San Diego region is such an important convention market," Colin Reed, Gaylord's CEO, said in a statement.
"However, 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. 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 would be taking a noncash impairment charge of approximately $5 million in the fourth quarter for costs incurred to date on the project. The company also said the decision regarding the Chula Vista project had no bearing on Gaylord's other announced development initiatives.
Earlier this year, Gaylord dropped plans for a $252.5 million purchase of the Westin La Cantera Resort. The company had planned $250 million in upgrades at the San Antonio property.