8-K: Ryman Hospitality Properties to Acquire JW Marriott Phoenix Desert Ridge Resort & Spa for $865 Million

Ryman Hospitality Properties, Inc. has entered into an agreement to purchase the JW Marriott Phoenix Desert Ridge Resort & Spa for $865 million, aiming to expand its group-oriented destination hotel assets.

Summary

• Ryman Hospitality Properties, Inc. (RHP) will acquire the JW Marriott Phoenix Desert Ridge Resort & Spa for $865 million.
• The purchase price represents a 12.7x Adjusted EBITDAre multiple based on the resort's 2024 results.
• The acquisition is expected to be accretive to adjusted funds from operations (Adjusted FFO) per fully diluted share in 2026.
• The resort features 950 guest rooms, including 81 suites, and approximately 243,000 square feet of meeting and event space.
• The property includes amenities such as the Revive Spa, seven food and beverage outlets, the AquaRidge water amenity, and two golf courses at Wildfire Golf Club.
• The property has recently undergone nearly $100 million in capital investments.
• The transaction is expected to close in the second or third quarter of 2025, subject to customary closing conditions.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the strategic acquisition, expected financial benefits, and recent capital improvements. The management's comments are optimistic, and the industry context supports the rationale for the transaction.

Positives

• The acquisition expands Ryman's presence in the Western U.S. market.
• The JW Marriott Desert Ridge is located in a strong meetings market with limited new supply.
• The property has undergone significant recent renovations, enhancing its appeal.
• Ryman anticipates operating synergies by aligning the resort with its existing portfolio.
• The acquisition is expected to be accretive to adjusted funds from operations (Adjusted FFO) per fully diluted share in 2026.

Negatives

• The resort's 2025 results are expected to be negatively impacted by ongoing meeting space renovation construction.
• The acquisition is subject to customary closing conditions, which could delay or prevent the transaction.

Risks

• The closing of the acquisition could be delayed or terminated due to unforeseen events or failure to meet closing conditions.
• Failure to successfully integrate the JW Marriott Desert Ridge with Ryman's existing assets could impact anticipated benefits.
• Changes in interest rates could affect Ryman's ability to borrow funds and refinance debt.
• Adverse effects on the company's common stock because of the failure to complete the Desert Ridge Acquisition.

Future Outlook

The Company expects the acquisition of the JW Marriott Desert Ridge to be accretive to adjusted funds from operations (Adjusted FFO) per fully diluted share for 2026.

Management Comments

• Mark Fioravanti, President and Chief Executive Officer of the Company, said, 'The JW Marriott Desert Ridge has been one of our top acquisition targets for many years.'
• Mark Fioravanti stated, 'Given the limited availability of marquee group-focused assets that complement our existing portfolio and group strategy, we are thrilled to acquire this resort.'
• Mark Fioravanti stated, 'Considering the strength of our forward bookings, the durable nature of our group business model and our early success with the 2023 acquisition of the JW Marriott Hill Country, we believe this is the right transaction for creating long-term customer and shareholder value.'
• Mark Fioravanti stated, 'Working with Marriott to align the resources of this complementary property with those already dedicated to our existing portfolio, creates opportunities to drive operating synergies at the property and portfolio level.'
• Mark Fioravanti stated, 'Furthermore, consistent with previous investments, we look forward to pursuing both near and long-term value creation opportunities at this property, which over time we believe will further improve the customer value proposition and enhance shareholder returns.'

Industry Context

This acquisition reflects a trend in the lodging REIT sector to focus on group-oriented, destination hotel assets in urban and resort markets. Ryman's strategy aligns with the increasing demand for meeting and event spaces, particularly in thriving markets with limited new competitive supply.

Comparison to Industry Standards

• A 12.7x Adjusted EBITDAre multiple is within the typical range for hotel acquisitions, but the specific valuation depends on the quality of the asset, market conditions, and growth potential.
• Comparable companies such as Host Hotels & Resorts and Park Hotels & Resorts also focus on large, upscale hotels and resorts, and their acquisition strategies often involve similar metrics and considerations.
• The $100 million in recent capital investments positions the JW Marriott Desert Ridge favorably compared to other properties in the Phoenix/Scottsdale area.

Stakeholder Impact

• Shareholders: Expected to benefit from increased adjusted funds from operations (Adjusted FFO) per fully diluted share in 2026.
• Customers: Will have access to an expanded hotel distribution in the Western U.S.
• Employees: Continuity of employment is expected, with the resort continuing to be operated by Marriott International.

Next Steps

• The Company expects to close the JW Marriott Desert Ridge transaction in the second or third quarter of 2025, subject to customary closing conditions.

Key Dates

Keywords

Ryman Hospitality Properties, JW Marriott Phoenix Desert Ridge, acquisition, hotel, resort, EBITDAre, Marriott International, group business, real estate, hospitality