Consolidated Revenue Growth: Increased 11% compared to last year. Consolidated Adjusted EBITDAre Growth: Increased 15% year-over-year. AFFO per Fully Diluted Share: Increased 28% year-over-year. Hospitality Segment RevPAR Growth: 10% year-over-year. Hospitality Segment Total RevPAR Growth: 9% year-over-year. ADR (Average Daily Rate): $264, up nearly 6% compared to last year. Entertainment Segment Revenue Growth: 34% year-over-year. Entertainment Segment Adjusted EBITDAre: $21 million, an increase of 35% year-over-year. Group Room Nights Booked Growth: Increased 10% year-over-year for all future years. Net Leverage Ratio: 3.9 times based on total consolidated net debt to adjusted EBITDAre. Available Liquidity: Approximately $1.2 billion. Revised Hospitality RevPAR Growth Guidance: 1.25% to 3.75% for full year 2025. Revised Total RevPAR Growth Guidance: 0.75% to 3.25% for full year 2025. Consolidated Adjusted EBITDAre Guidance: $749 million to $801 million for full year 2025. AFFO Guidance: $510 million to $555 million for full year 2025. AFFO per Fully Diluted Share Guidance: $8.24 to $8.86 for full year 2025. Capital Expenditures Guidance: Lowered to $350 million to $450 million for 2025.

Warning! GuruFocus has detected 4 Warning Signs with RHP.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Ryman Hospitality Properties Inc (NYSE:RHP) reported a strong first quarter with consolidated revenue increasing by 11% and adjusted EBITDAre rising by 15%. The Hospitality segment achieved record first quarter revenue and adjusted EBITDAre, driven by RevPAR and total RevPAR growth of 10% and 9%, respectively. The Entertainment segment saw a revenue growth of 34% and adjusted EBITDAre increase of 35%, both setting first quarter records. RHP's proactive cost management and margin improvement plans have allowed the company to maintain its adjusted EBITDAre and AFFO guidance despite revising RevPAR expectations. The company has a strong forward booking position for 2026 and 2027, with revenue up 9% and 13% respectively, driven primarily by rate increases.

Negative Points

Economic uncertainty, particularly related to US trade policies, has led to hesitancy among businesses and meeting planners, impacting near-term group demand. There has been an uptick in attrition for meetings expected to travel over the next few quarters, along with a modest pullback in demand for in-the-year, for-the-year bookings. RHP has revised its full-year outlook for hospitality RevPAR and total RevPAR growth due to anticipated weaker group business volumes and potential for increased attrition and cancellations. The company is experiencing some cancellations in government-related business, which has been factored into the lower end of prior guidance. New hotel supply in the Nashville market has impacted performance at Gaylord Opryland, although the overall portfolio has outperformed the industry.

Story Continues

Q & A Highlights

Q: Can you elaborate on the short-term nature of the hesitancy you're seeing in bookings, and why you believe it's a 2025 issue? A: Colin Reed, Executive Chairman, noted that the team has dealt with volatile moments before and believes this situation is no different. Patrick Chaffin, COO, added that while there's uncertainty, April production numbers showed improvement in lead volumes, indicating the hesitancy might be short-lived. Long-term bookings for 2026 and 2027 remain strong.

Q: How are you maintaining EBITDA guidance despite lowering RevPAR expectations? A: Patrick Chaffin, COO, explained that they proactively implemented profit improvement plans from January, capturing $28-$30 million in savings. This early action allowed them to safeguard margins and maintain EBITDA guidance despite potential revenue shortfalls.

Q: What is the strategy behind acquiring a majority interest in Southern Entertainment, and are there similar opportunities? A: Patrick Moore, CEO of Opry Entertainment Group, stated that Southern Entertainment offers an opportunity to expand in live venues and entertainment. It allows for increased fan engagement and artist collaboration across their venues. They are exploring similar opportunities in the festival space.

Q: Can you discuss the impact of government-related business on your portfolio, particularly at Gaylord National? A: Patrick Chaffin, COO, mentioned that while there have been some government-related cancellations, the overall exposure is not significant. They have stress-tested their model and feel confident in maintaining EBITDA guidance even if all government business were lost.

Q: How are you approaching potential opportunities during this period of economic uncertainty? A: Colin Reed, Executive Chairman, emphasized the importance of being proactive and looking for opportunities during periods of stress. They are considering recruiting high-quality salespeople and leveraging their relationship with Marriott to navigate the current environment effectively.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This article first appeared on GuruFocus.

View Comments