Ryman Hospitality Properties NYSE: RHP said its same-store hospitality business outperformed its internal expectations in the second quarter, supported by higher group rates, stronger catering spending and continued demand for premium meetings business.
Executive Chairman Colin Reed said the results reflected the resilience of the company’s business model despite a “dynamic” broader economic environment. He said customers continued to prioritize the types of group and leisure experiences offered across the company’s portfolio, while investments in its properties were strengthening their competitive positions.
“The demand for high-quality group meetings experiences remains healthy,” Reed said, adding that the company’s strategy of attracting higher-value customers was gaining traction.
Group rates and catering spending drive outperformance
President and Chief Executive Officer Mark Fioravanti said same-store RevPAR and total RevPAR growth each exceeded company expectations by about 2.5 percentage points. Adjusted EBITDAre surpassed expectations by approximately $7 million, primarily because of stronger top-line performance and operating discipline.
Group and leisure business each contributed about equally to the RevPAR upside, while group catering also supported total RevPAR growth. Group average daily rate rose 7.5% year over year, roughly three percentage points ahead of expectations, as the company booked a stronger mix of higher-rated group customers.
Catering contribution per group room night increased nearly 13% from a year earlier, about 6.5 percentage points above expectations. Fioravanti attributed that result largely to corporate-group spending at Gaylord Palms and association-group spending at JW Hill Country.
At Gaylord Palms, higher-rated corporate group room nights rose 31%, contributing to a 63% increase in catering contribution per group room night. The property recorded its highest second-quarter catering contribution on record, according to Fioravanti.
Several properties also posted records during the quarter. Gaylord Palms, Gaylord Rockies and Gaylord National each delivered record second-quarter revenue, while Gaylord Palms also generated record second-quarter adjusted EBITDAre. The same-store portfolio’s trailing 12-month RevPAR index reached nearly 130% of fair share at the end of June, up six points year over year.
Future booking trends remain favorable
During the quarter, the company booked more than 768,000 same-store gross group room nights for future periods, a 6.7% year-over-year increase. ADR on those bookings reached a quarterly record of approximately $310, up 8.6% from a year earlier and 2.3% above the prior record.
As of the end of July, same-store group rooms revenue on the books for all future periods was up 8.8% year over year, improving 120 basis points from the end of March. ADR for future bookings was pacing in the mid-single-digit range, while room nights on the books were at their highest level for this point in the year, even excluding the addition of JW Hill Country in 2023.
For 2027, group rooms revenue on the books was 3.2% higher than comparable 2026 levels, while 2028 was down 50 basis points. Management said ADR pacing remained in the mid-single digits for both years and cited near-record corporate lead volume, a healthy late-stage pipeline and favorable booking-pattern availability.
Chief Operating Officer Patrick Chaffin said the company has booked about 129,000 multiyear rotational group room nights since establishing a dedicated above-property lead-generation team for its two JW Marriott hotels. The company is seeing increased rotation between the JW properties as well as overlap with the Gaylord portfolio, he said.
JW Desert Ridge also delivered what management described as a strong quarter. Group mix increased nearly 13 points year over year, helping drive catering revenue growth and compress leisure inventory. The property’s RevPAR index share rose 18 points from a year earlier.
Guidance raised; capital plan accelerated
Ryman raised the midpoints of its 2026 guidance ranges for same-store hospitality and JW Desert Ridge. The $10 million midpoint increase in same-store hospitality adjusted EBITDAre includes the approximately $7 million second-quarter outperformance and a $3 million improvement to the outlook for the second half, entirely from a stronger group base.
The $1 million increase for JW Desert Ridge reflects the second-quarter beat, as the property’s seasonality is weighted toward the first half of the year.
Management said it has not seen a meaningful impact from interest-rate uncertainty, inflation or broader economic conditions on demand, customer behavior or future booking activity. The outlook assumes a relatively stable operating environment and normalized attrition and cancellation trends.
For the second half, the company expects roughly flat same-store leisure rooms revenue because a stronger group base limits leisure-room availability. Same-store RevPAR guidance assumes low- to mid-single-digit growth in the third quarter and mid-single-digit growth in the fourth quarter.
Chief Financial Officer Jennifer Hutcheson said the company expects 2026 capital expenditures of approximately $400 million to $500 million, an increase of about $50 million at the midpoint. The increase reflects accelerated projects previously planned for 2027, including façade work at JW Hill Country that will be completed alongside its room renovation and water-amenity improvements at Gaylord Texan.
Hutcheson said the overall scope of the multiyear capital plan remains unchanged and projects are on time and on budget. The company reported $366 million of unrestricted cash, $32 million of restricted cash for maintenance projects, undrawn corporate and OEG revolving credit facilities, and nearly $1.3 billion of total available liquidity. Net leverage was 4.2 times adjusted EBITDAre.
Entertainment business and OEG discussions
The entertainment business posted a nearly 30% year-over-year increase in adjusted EBITDAre to a quarterly record. Fioravanti said Southern Entertainment’s two largest festivals exceeded expectations, while Ole Red and Category 10 venues also performed well. Category 10 Nashville recorded the highest monthly revenue ever generated by an Ole Red or Category 10 venue in June.
Reed said the board, advised by Morgan Stanley, continues to evaluate potential new investors or partners for Opry Entertainment Group. The company is in discussions with select potential investors but has not reached an agreement, and Reed said there is no assurance that a definitive agreement will be completed.
Management said any potential OEG transaction is separate from the company’s hotel growth strategy. Fioravanti added that a transaction would need to comply with REIT rules and, given the entertainment business’s tax basis, proceeds would likely be distributed through dividends over time if a deal occurred.
About Ryman Hospitality Properties (NYSE:RHP)
Ryman Hospitality Properties, Inc is a publicly traded real estate investment trust (REIT) specializing in the ownership and operation of group‐oriented, large convention center hotel resorts. The company's portfolio is anchored by its Gaylord Hotels brand, offering integrated resort, convention, entertainment and dining experiences under long‐term management agreements with Marriott International.
Ryman's flagship properties include Gaylord Opryland Resort & Convention Center in Nashville, Gaylord Texan Resort & Convention Center near Dallas/Fort Worth and Gaylord Palms Resort & Convention Center in Orlando, Florida.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
Before you consider Ryman Hospitality Properties, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Ryman Hospitality Properties wasn't on the list.
While Ryman Hospitality Properties currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
The space race is growing fast, and you don’t have to have gotten in early on SpaceX to profit. This report shows seven space stocks you can buy today that may grow as rockets, satellites, defense, space internet, and new space technology become more important.
Get This Free Report
