8-K: Ryman Hospitality Properties Issues 2024 Guidance, Projects Growth Despite Capital Investments

Ryman Hospitality Properties has released its full-year 2024 guidance, anticipating growth in key metrics despite planned capital projects.

Summary

• Ryman Hospitality Properties, a lodging REIT, has provided its full-year 2024 financial guidance.
• The company expects same-store consolidated hospitality RevPAR growth between 3.50% and 5.50%, with a midpoint of 4.50%.
• Total RevPAR growth is projected to be between 3.25% and 5.25%, with a midpoint of 4.25%.
• Consolidated operating income is estimated to be between $490.2 million and $519.0 million, with a midpoint of $504.6 million.
• Adjusted EBITDAre is projected to range from $740.5 million to $785.0 million, with a midpoint of $762.8 million.
• Net income is expected to be between $253.0 million and $272.0 million, with a midpoint of $262.5 million.
• Adjusted FFO available to common stockholders and unit holders is projected to be between $484.3 million and $527.0 million, with a midpoint of $505.6 million.
• Diluted income per share is estimated to be between $3.92 and $4.21, with a midpoint of $4.06.
• Adjusted FFO per diluted share is projected to be between $7.60 and $8.20, with a midpoint of $7.90.
• The company's preliminary estimated consolidated revenue for 2023 is $2.158 billion, with $1.833 billion from the Hospitality segment and $325 million from the Entertainment segment.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the company's growth projections and strategic investments, but tempered by the acknowledgment of potential disruptions from capital projects and the preliminary nature of some financial results.

Positives

• The company is projecting growth in key financial metrics for 2024.
• The guidance reflects confidence in the long-term returns from planned capital projects.
• The company has provided detailed financial guidance for various segments, including Hospitality, JW Marriott Hill Country, and Entertainment.
• The company is actively investing in capital projects to enhance its portfolio.

Negatives

• The guidance acknowledges potential disruptions from significant capital projects planned for 2024.
• The company's preliminary results for 2023 are subject to change as the financial close procedures are completed.
• The company does not expect to update the guidance provided before the next quarter's earnings release.

Risks

• The company's performance is subject to economic conditions affecting the hospitality industry.
• Geographic concentration of hotel properties poses a risk.
• Business levels at the company's hotels can fluctuate.
• Inflation could impact costs of labor and supplies.
• The company's ability to remain qualified as a REIT is a risk.
• The company's ability to execute strategic goals as a REIT is a risk.
• Changes in interest rates could affect the company's financial performance.
• The company's ability to generate cash flows to support dividends is a risk.
• The company's ability to borrow funds and refinance debt is a risk.
• The integration of the JW Marriott Hill Country and the ability to capitalize on value creation opportunities is a risk.

Future Outlook

The company has provided full-year 2024 guidance and does not expect to update it before the next quarter's earnings release, but may update its full business outlook at any time for any reason.

Management Comments

• We are pleased to share our 2024 guidance ahead of our Investor Day.
• In both our Hospitality and Entertainment businesses, we have significant capital projects planned in the year ahead and our guidance reflects those projected disruptions.
• We are enthusiastic about the long term returns these enhancements will generate to our portfolio and look forward to sharing more details during today's Investor Day presentation.

Industry Context

This announcement is relevant to the lodging and hospitality REIT sector, as it provides insights into Ryman's expected performance and strategic direction. The company's focus on group-oriented, destination hotel assets aligns with trends in the convention and leisure travel markets.

Comparison to Industry Standards

• Ryman Hospitality Properties' projected RevPAR growth of 4.50% at the midpoint is within the range of expectations for the hospitality sector, but specific comparisons to peers like Host Hotels & Resorts (HST) or Park Hotels & Resorts (PK) would require their respective guidance.
• The company's focus on convention center resorts is a niche within the broader hotel industry, making direct comparisons challenging. However, its Adjusted EBITDAre guidance of $762.8 million at the midpoint suggests a strong operational outlook.
• The company's capital investment plans are consistent with industry trends of enhancing properties to maintain competitiveness, similar to projects undertaken by other major hotel REITs.
• Ryman's entertainment segment, with its focus on country music brands, provides a unique diversification compared to peers that primarily focus on hotel operations.

Stakeholder Impact

• Shareholders can expect to see potential growth in the company's financial performance.
• Employees may be impacted by the capital projects and any associated operational changes.
• Customers may experience improvements in the company's properties and services due to the capital investments.
• Suppliers may see increased business opportunities due to the company's capital projects.
• Creditors may be impacted by the company's financial performance and debt management.

Next Steps

• The company will host an Investor Day on January 30, 2024, to discuss the guidance and preliminary results.
• The company intends to release its finalized fourth quarter and full year earnings results after the market closes on February 22, 2024.
• Management will hold a conference call to discuss the results at noon ET on February 23, 2024.

Key Dates

Keywords

REIT, Hospitality, Entertainment, RevPAR, EBITDAre, FFO, Guidance, Capital Projects, Hotel, Real Estate