8-K: Ryman Hospitality Properties Reports Record Revenue for 2024, But Q4 Results Disappoint

Ryman Hospitality Properties (RHP) announced record full-year revenue for 2024, but fourth-quarter results fell short of expectations due to softness in holiday leisure demand.

Summary

• Ryman Hospitality Properties reported record consolidated revenue of $2.3 billion for the full year 2024.
• Net income for the year was $280.2 million, and consolidated Adjusted EBITDAre reached $757.7 million.
• Fourth-quarter consolidated revenue hit a record $647.6 million, driven by record Hospitality revenue of $549.5 million and Entertainment revenue of $98.2 million.
• However, fourth-quarter results were below expectations due to weaker holiday leisure demand, particularly at Gaylord Texan and Gaylord Opryland.
• Net income for the fourth quarter was $72.3 million, and consolidated Adjusted EBITDAre was $188.6 million.
• The company booked nearly 1.3 million same-store Gross Definite Room Nights in Q4 for future years at a record estimated average daily rate (ADR) of approximately $284.
• For the full year, the company booked over 2.9 million same-store Gross Definite Room Nights for future years at a record estimated ADR of approximately $282.
• Construction disruption impacted the Hospitality business by approximately 320 basis points to RevPAR growth and $27 million to segment operating income and Adjusted EBITDAre.
• The Entertainment business was impacted by approximately $12 million due to construction disruption.
• The company declared a cash dividend of $1.15 per share for the first quarter of 2025, payable on April 15, 2025.
• The company intends to pay aggregate minimum dividends for 2025 of $4.60 per share, subject to the Board's future determinations.
• For 2025, the company estimates the full year impact of construction disruption to its total Hospitality business to be 250 to 350 basis points to RevPAR and $30 to $35 million to operating income and Adjusted EBITDAre.
• The company expects to spend approximately $400 to $500 million on capital expenditures in 2025, primarily related to its Hospitality business.
• The company is providing 2025 guidance with consolidated Hospitality RevPAR growth between 2.25% and 4.75%.

Sentiment

Score: 6

Explanation: The document presents a mixed sentiment. While full-year results are positive with record revenue, the fourth-quarter performance fell short of expectations due to specific market conditions and construction disruptions. The guidance for 2025 is cautiously optimistic, but the ongoing construction and potential for further disruptions temper the overall outlook.

Positives

• Ryman Hospitality Properties achieved record full-year consolidated revenue of $2.3 billion in 2024.
• The company's full-year consolidated Adjusted EBITDAre was $757.7 million.
• The company booked over 2.9 million same-store Gross Definite Room Nights for all future years at a record estimated ADR for future bookings booked during any year of approximately $282.
• The company declared total dividends of $4.45 per share in 2024, an increase of 15.6% from 2023.
• The company repriced its Term Loan B, reducing the applicable interest rate margin on SOFR loans from 225 basis points to 200 basis points.
• Projected group rooms revenue on the books for 2025 was approximately 3% ahead of same time last year.
• Projected occupancy on the books for 2025 was approximately 49 points, and projected ADR on the books for 2025 was approximately 4% ahead of same time last year.

Negatives

• Fourth-quarter results were below expectations due to weaker holiday leisure demand, particularly at Gaylord Texan and Gaylord Opryland.
• Net income for the fourth quarter was $72.3 million, a decrease of 57.4% compared to the fourth quarter of 2023.
• Construction disruption impacted the Hospitality business by approximately 320 basis points to RevPAR growth and $27 million to segment operating income and Adjusted EBITDAre.
• The Entertainment business was impacted by approximately $12 million due to construction disruption.
• Same-store portfolio-wide ICE! attendance was up slightly compared to last year; however, consumers attending ICE! were more price sensitive than anticipated, contributing to overnight stays declining more than expected as compared to 2023.

Risks

• The company experienced more construction disruption in 2024 than originally anticipated due primarily to construction labor issues in the Orlando market.
• The company estimates the full year 2024 impact of construction disruption to its same-store Hospitality business was approximately 320 basis points to RevPAR growth; approximately 220 basis points to Total RevPAR growth; and approximately $27 million to operating income and Adjusted EBITDAre.
• The company estimates the full year 2024 impact of construction disruption to its Entertainment business was approximately $12 million to operating income and Adjusted EBITDAre.
• For 2025, the Company estimates the full year impact of construction disruption to its total Hospitality business to be 250 to 350 basis points to RevPAR; 200 to 300 basis points to Total RevPAR; and $30 to $35 million to operating income and Adjusted EBITDAre.

Future Outlook

The company is providing its 2025 business performance outlook based on current information as of February 20, 2025, and does not expect to update the guidance before next quarter's earnings release.

Management Comments

• Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, said, 'Our fourth quarter results were below expectations, primarily due to softness in holiday leisure demand during the last two weeks of December, particularly at Gaylord Texan and Gaylord Opryland.'
• Fioravanti continued, 'We experienced more construction disruption in 2024 than we originally anticipated due primarily to construction labor issues in the Orlando market, which increased the average number of days rooms were out of service for renovation.'
• Fioravanti continued, 'Our Entertainment segment delivered strong performance, setting quarterly and full year records in revenue despite construction disruption from several planned investments.'

Industry Context

Ryman Hospitality Properties operates in the lodging and entertainment sectors, with a focus on group-oriented, destination hotel assets and iconic country music brands. The company's performance is influenced by broader economic conditions affecting the hospitality business, as well as specific factors such as construction disruptions and consumer spending patterns.

Comparison to Industry Standards

• Ryman Hospitality Properties competes with other lodging REITs such as Host Hotels & Resorts (HST) and Park Hotels & Resorts (PK).
• RHP's focus on group-oriented hotels differentiates it from REITs focused on transient leisure or business travel.
• The company's entertainment segment, through Opry Entertainment Group, competes with Live Nation Entertainment (LYV) and other live event operators.
• RHP's RevPAR and ADR metrics are comparable to those of upscale convention center hotels in similar markets.
• The company's dividend yield is a key metric for REIT investors and is often compared to peers in the lodging sector.

Stakeholder Impact

• Shareholders will receive a dividend of $1.15 per share for the first quarter of 2025.
• Employees may be affected by construction disruptions and operational changes.
• Customers may experience temporary inconveniences due to ongoing renovations.
• Suppliers and creditors will continue to benefit from the company's capital expenditure plans.
• The company's performance impacts the local communities where its properties are located.

Next Steps

• The company will continue with its capital expenditure plans, including renovations and expansions at its Gaylord properties.
• The company will focus on managing construction disruptions and mitigating their impact on financial results.
• The company will monitor consumer demand and adjust its pricing strategies accordingly.
• The company will continue to develop and expand its Entertainment segment through strategic investments and event planning.

Key Dates

Keywords

Ryman Hospitality Properties, Hospitality, Entertainment, REIT, Revenue, EBITDAre, RevPAR, ADR, Dividend, Construction Disruption