Xanadu III was a convention held November 7-9, 1986 at the Days Inn Central in Nashville, TN. The GoH was Jack Chalker and Joan Hanke-Woods was Artist GoH. It was chaired by Fran Bray and the toastmaster was Bob Tucker. (Apparently there were Fan GoHs as well, but Chalker reports that they were never introduced.)
Dan Caldwell writes: We were back at the same hotel, now the Days Inn Central, after a change of management. Xanadu continued its rapid growth reaching about 450 members. The con was notable for the con suite and the rain. The hotel rented out its penthouse bar, which had a great view of downtown Nashville. It was such a great place that all the Saturday night parties moved up to the con suite. It rained hard all weekend. Almost all the rooms on the west side of the hotel leaked badly around the windows. GoH Jack Chalker had to be moved to another room, as his carpet was wet all the way to the door. The hotel also had changed management and maid service and restaurant service varied from very good to horrid. No one wanted to use the hotel again.
See a con report by Chalker in File 770 63, p. 11.
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