The increase was attributed to "a solid increase in food and beverage spending from group attendees," Colin V. Reed, chairman and CEO of Gaylord Entertainment, says in a prepared statement. Revenue per available room, without counting food and beverage sales, rose to $132.60, up 5.5% from $125.71 a year ago.

Occupancy, however, was down marginally to 76.5% from 77.3% a year ago. That occupancy level was still ahead of an average 65% mark which the hospitality industry has long considered a break-even point for most hotels.

"Three years of laying the strong foundation for our hospitality brand by demanding the highest standards have come to fruition, as reflected by these results," Reed says. "We continued our strong momentum in the hospitality segment, generating higher network-wide revenues and strong margin performance at all of our destinations."

Consolidated cash flow, considered a vibrant barometer of a hotel's daily financial health, increased 27.6% to $13.4 million, compared to $10.5 million in second quarter 2004 at Gaylord Palms Resort. Reed says that performance resulted in a consolidated cash flow margin of 30.2%, a 3.1 percentage point increased over the second quarter of 2004.