After being rebuffed in December, Robert Rowling and TRT Holdings have taken their efforts to gain influence on Gaylord Entertainment's board of directors directly to shareholders. In an open letter dated Jan. 15, Rowling announced his intention to nominate himself and three others to Gaylord's board of directors because "we are convinced that Gaylord has lost its way and we therefore believe it is time for a change at the company."

Rowling, TRT’s chairman, cites "poor financial performance relative to peer group" and says when compared against 11 hospitality peers (in year over year performance), Gaylord ranks "the absolute worst" in several key metrics. He also cites "corporate waste" and says the "poster child for Gaylord's excess is its operation of a $15 million Gulfstream G150 private jet" that's not needed with only three hotels outside its corporate headquarters in Nashville.

Rowling, who last year became Gaylord's largest shareholder with 14.99 percent of outstanding common shares, also owns Omni Hotels and was denied in his bid to up his stake to 30 percent in December. During that effort, Rowling wanted to place three people on the board, but Gaylord rejected the proposal, saying it would give TRT effective control over the company "without a full and fair price being paid to all Gaylord shareholders." Now TRT is looking to add four board members without any additional stock purchase. Gaylord also had "serious conflict-of-interest issues" because Omni Hotels has meeting properties in three of Gaylord's four principal markets: Orlando, Dallas and Washington, DC.

Last week, Gaylord responded to Rowling's latest effort with a press release stating the very same concerns and contesting his assertion the company was underperforming. "Gaylord Hotels rank number one in total (RevPAR) in the markets that they service, including those where they compete with Omni Hotels. Gaylord Hotels have demonstrated revenue growth that is above the industry's growth rate for the past three years. The Company would be happy to have the performance of Gaylord Hotels judged against the Omni Hotels with which they compete."

Rowling, in his letter, said TRT's focus would be to bring: "(1) a disciplined business approach, (2) accountability to shareholders, and (3) a fresh perspective based on our considerable industry experience." He added there would be no conflicts of interest and safeguards would be put in place when any might arise at the board level. Beyond Rowling, the other three director candidates would have no affiliation with Omni, he said.

How the two companies could work together, in light of the stark differences in the two businesses and the conflicts between them, remains to be seen. The answer, or more fireworks, should come in May at Gaylord's annual board meeting.

Omni has about 40 business hotels and resorts in the U.S., Canada and Mexico. Gaylord's specialty is the huge convention hotel, a niche it pioneered with the iconic Opryland Hotel in Nashville and has since sprouted to four locations.