UPDATE 2-Gaylord sees no liquidity issues from flood damage

* Expects to clean up Opryland by month-end

* Sees no liquidity issues from damages

* Financial impact of flooding not to go beyond 2010

* Sees 2010 revPAR ex-Opryland up 2-4 pct (Adds analyst comment, details, background; updates share movement)

By Abhishek Takle

BANGALORE, May 7 (Reuters) - Gaylord Entertainment Co (GET.N) said it expects to clean up its flood-hit Opryland hotel by the end of this month and that it sees no liquidity issues even if damages exceed its insurance cover.

Shares of the company, which had fallen 8 percent to an intra-day low of $24.75, recouped much of the losses to trade down 3 percent at $26.16 Friday afternoon on the New York Stock Exchange.

A weekend deluge that triggered flash flooding and pushed rivers out of their banks in parts of Tennessee, Kentucky and Mississippi, flooded Gaylord's Nashville-based hotel and convention center.

On a conference call with analysts, Chief Executive Colin Reed said though losses from business interruption and restoration costs could exceed the insurance cover of up to $50 million, they would not strain the company's balance sheet.

"Additionally at this time and from a preliminary perspective, we do not believe that this flooding and the resulting loss in revenue and consolidated cash flow will have any impact beyond 2010, nor will it pose any covenant issue for our company," he said

About 800,000 square feet of the property's 4 million square feet were damaged and 117 of the about 2900 rooms affected.

BGB Securities analyst Sam Yake said his impression was that the damage was not as bad as people had feared.

"It looks now like they're going to recover well from this and the company will not be damaged in any serious way," Yake said.

Gaylord, which reported results a day early and withdrew its 2010 outlook earlier this week, said it now expects revenue per available room (revPAR) at its remaining three hotel properties to grow 2 percent to 4 percent.

Total revPAR, which includes out-of-the-room spending, is expected to rise by 3 percent to 5 percent for the year.

In February, including the Gaylord Opryland, the company had forecast revPAR to range from a decline of 2 percent to a rise of 1 percent and total revPAR to range from a decline of 1 percent to an increase of 2 percent.

"We are cautiously optimistic that the worst of the economic challenges are behind us and that as occupancy continues to stabilize, pricing power will begin to build as early as late this year or early 2011," the CEO said. (Reporting by Abhishek Takle in Bangalore; Editing by Anthony Kurian and Don Sebastian)