8-K: Ryman Hospitality Properties Postpones Investor Day, Announces Record Preliminary 2023 Results

Ryman Hospitality Properties has postponed its Investor Day due to severe weather in Nashville, while also releasing preliminary 2023 financial results showing record net income and Adjusted EBITDAre.

Summary

• Ryman Hospitality Properties has postponed its Investor Day, originally scheduled for January 15, 2024, to January 30, 2024, due to inclement weather in Nashville.
• The company released preliminary financial results for the quarter and year ended December 31, 2023, indicating a strong performance that exceeded expectations.
• Net income is expected to be between $336 million and $348 million, and consolidated Adjusted EBITDAre is expected to be approximately $691 million, both representing annual records.
• Both the Hospitality and Entertainment segments achieved record full-year operating income and Adjusted EBITDAre.
• Same-store new gross definite rooms revenue booked for all future years set an all-time quarterly record in Q4 2023, increasing 29% over Q4 2022, and an all-time yearly record in 2023, increasing 19% over 2022.
• Same-store gross new definite average daily rate (ADR) booked for all future years also set all-time quarterly and yearly records, reaching $275 in Q4 2023 and $268 for the full year, both up 8.5% year-over-year.
• The company anticipates an income tax benefit between $95 million and $107 million in the fourth quarter, primarily due to the release of valuation allowances.

Sentiment

Score: 9

Explanation: The document conveys a very positive sentiment due to the record financial results and strong future bookings. The postponement of the Investor Day is a minor negative, but the overall tone is highly optimistic.

Positives

• The company achieved record net income and Adjusted EBITDAre for the full year 2023.
• Both the Hospitality and Entertainment segments had record operating income and Adjusted EBITDAre for the year.
• New bookings for future years are very strong, with record quarterly and yearly results for both revenue and average daily rate.
• The company expects a significant income tax benefit in the fourth quarter due to the release of valuation allowances.
• The company's strong performance gives them confidence in their long-term growth plans.

Negatives

• The Investor Day was postponed due to severe weather, which may cause some inconvenience for attendees.
• The financial results are preliminary and subject to change, so the final numbers may differ.

Risks

• The company's performance is subject to economic conditions affecting the hospitality industry.
• The geographic concentration of the company's hotel properties poses a risk.
• Inflation could impact the company's costs and customer demand.
• The company's ability to remain qualified as a REIT is a risk.
• Changes in interest rates could affect the company's borrowing costs.
• The company's ability to integrate the JW Marriott Hill Country and capitalize on value creation opportunities is a risk.

Future Outlook

The company expresses confidence in its long-term growth plans due to the continued strength of its businesses and robust bookings from group customers.

Management Comments

• Mark Fioravanti, President and CEO, stated that the Investor Day was postponed due to safety concerns related to severe weather.
• Fioravanti also noted that the company's preliminary 2023 financial results exceeded expectations, with record net income and Adjusted EBITDAre.
• Fioravanti mentioned that the strong bookings from group customers across all future periods gives them confidence in their long-term growth plans.

Industry Context

This announcement reflects a positive trend in the hospitality industry, with strong bookings and revenue growth indicating a recovery in travel and events. Ryman's focus on group-oriented, destination hotel assets positions them well in this environment.

Comparison to Industry Standards

• Ryman's record Adjusted EBITDAre of $691 million is a strong result compared to other lodging REITs, such as Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK), which also focus on large-scale hotel properties.
• The 19% year-over-year increase in same-store new gross definite rooms revenue booked for all future years is a significant achievement, indicating strong demand for Ryman's properties compared to industry averages.
• The 8.5% increase in same-store gross new definite average daily rate (ADR) also demonstrates Ryman's ability to command higher prices, which is a positive sign compared to competitors who may be struggling with pricing power.
• The company's focus on convention center resorts and entertainment experiences differentiates it from other hotel REITs, which may have a broader mix of property types.

Stakeholder Impact

• Shareholders will likely react positively to the record financial results and strong future outlook.
• Employees may be encouraged by the company's strong performance and growth prospects.
• Customers may benefit from the company's continued investment in its properties and services.
• Suppliers may see increased business opportunities due to the company's growth.
• Creditors may view the company as a lower-risk borrower due to its strong financial performance.

Next Steps

• The company will host its Investor Day on January 30, 2024.
• The company will 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

Ryman Hospitality Properties, Investor Day, Preliminary Results, Net Income, Adjusted EBITDAre, Hospitality Segment, Entertainment Segment, Hotel Bookings, Average Daily Rate, REIT