Ryman Hospitality Properties Q3 Earnings Call Highlights

Key Points

• Ryman delivered record third-quarter hospitality revenue and Adjusted EBITDAre: Same-store RevPAR rose 7.9%, total RevPAR increased 8%, and Adjusted EBITDAre climbed 12%, all beating expectations. Strength came from group meetings, higher on-property spending and leisure demand.
• Forward group demand remained strong, and Ryman raised its hospitality outlook. Future net group room nights booked increased 9% year over year, while group-room revenue on the books was ahead for both 2027 and 2028; AFFO per share is now expected to grow nearly 10% at the midpoint.
• Grande Lakes Orlando expands Ryman’s group-oriented resort portfolio after its acquisition closed Sept. 1. Separately, the company lowered its OEG earnings outlook by $3 million at the midpoint, citing General Jackson Showboat disruptions and costs to wind down its operations.

Ryman Hospitality Properties NYSE: RHP reported record third-quarter consolidated revenue and Adjusted EBITDAre, supported by continued strength in group meetings, leisure demand and on-property spending, management said during its third-quarter 2026 earnings call.

Executive Chairman Colin Reed said the company’s hospitality operations benefited from demand for higher-quality group meetings experiences and from its strategy of targeting premium group customers. Those customers generated incremental revenue through stronger attendance, additional functions and enhanced food and beverage offerings once they arrived at properties, Reed said.

The company also completed its acquisition of Grande Lakes Orlando during the quarter. The resort includes a JW Marriott and Ritz-Carlton property, adding a group-oriented asset in Orlando, which management described as the country’s top meetings market. Reed said the transaction supports a rotational strategy for JW Marriott customers among Grande Lakes, JW Marriott San Antonio Hill Country Resort & Spa and JW Marriott Phoenix Desert Ridge Resort & Spa.

Hospitality Results Outpace Expectations

President and CEO Mark Fioravanti said the same-store hospitality portfolio produced a 7.9% year-over-year increase in RevPAR and an 8% rise in total RevPAR during the third quarter. Both figures exceeded management’s expectations by about 400 basis points.

Same-store Adjusted EBITDAre rose 12% from the prior-year quarter and surpassed expectations by approximately $7 million. Fioravanti said the outperformance was principally driven by revenue growth, alongside continued operating discipline.

• Group ADR increased 3.5% year over year, more than 200 basis points above expectations.
• Banquet and audiovisual revenue increased 14%, aided by nearly 10% growth in catering contribution per group room night.
• Corporate groups at Gaylord Palms, Gaylord National and Gaylord Rockies generated much of the upside relative to expectations.
• Leisure demand outperformed at Gaylord National and Gaylord Texan, with Texan demand accelerating after completion of its room renovation in September.

The same-store portfolio delivered its highest third-quarter total revenue and Adjusted EBITDAre on record, Fioravanti said. Opryland, Texan, National and Rockies each recorded third-quarter Adjusted EBITDAre records.

Forward group booking indicators also remained favorable. The company booked more than 653,000 same-store gross group room nights for future periods during the quarter at an ADR of $293, a third-quarter production ADR record. Net group room nights booked for all future periods increased 9% year over year.

As of the end of September, group rooms revenue on the books for 2027 was 4.5% ahead of the comparable point last year for 2026, improving 130 basis points since the end of July. Group rooms revenue on the books for 2028 was 1% ahead of the comparable point last year, improving 150 basis points since July. Management said ADR pace for both years remained in the mid-single digits.

Acquisitions and Capital Projects

JW Desert Ridge performed in line with expectations in the third quarter, Fioravanti said. Group demand increased nearly 17% and banquet and AV revenue rose nearly 18%, aided by a favorable comparison with the prior year’s meeting-space renovation. The property is scheduled to introduce the company’s ice! holiday programming later in the year.

Grande Lakes Orlando contributed one month of results after its Sept. 1 closing. Management said integration work was in its early stages but identified opportunities to expand customer rotation, create portfolio and market-level synergies, and improve operating efficiency at the Ritz-Carlton while maintaining the luxury brand’s service standards.

Ryman said it is progressing on several capital projects, including renovations at JW Hill Country, which are expected to begin coming online in early 2027. The projects include guest rooms, event lawns and the first phase of a lobby renovation. The company also expects to begin renovations in the Magnolia and Garden sections of Gaylord Opryland in 2027.

The Gaylord Opryland meeting-space expansion is expected to be available in mid-2028, according to CFO Jennifer Hutcheson. Management said capital projects are on time and on budget, while the company narrowed its 2026 capital expenditure outlook to $450 million to $500 million.

Entertainment Outlook and General Jackson Retirement

Opry Entertainment Group, or OEG, generated record third-quarter revenue, up 1.5%, and Adjusted EBITDAre of $23.8 million. However, management reduced the midpoint of its full-year OEG Adjusted EBITDAre outlook by $3 million, reflecting lower profitability from maintenance-related disruptions at the General Jackson Showboat and costs tied to winding down its operations.

Reed said the company decided to retire the General Jackson after more than 40 years because growing maintenance needs and more frequent operating disruptions made it difficult to consistently provide a first-class customer experience.

Meanwhile, OEG opened its second Category 10 venue in Las Vegas in October. Reed said opening-weekend traffic and guest spending exceeded expectations. Management expects to open additional Category 10 and Ole Red locations in Orlando and Indianapolis in early 2028.

Ryman’s board, advised by Morgan Stanley, continues to evaluate providing OEG with greater independence through a potential third-party investment. Reed said no definitive agreement has been reached and there is no assurance one will be completed.

Updated Outlook and Balance Sheet

The company raised the midpoints of its same-store hospitality guidance ranges to reflect the third-quarter outperformance and a modestly stronger fourth-quarter leisure outlook. Management said its assumptions now include low-single-digit fourth-quarter leisure demand growth, excluding renovation disruptions at JW Hill Country.

Fioravanti said ice! ticket sales and leisure room nights booked for November and December were ahead of last year, though he cautioned that the holiday selling season remained early. The net increase in consolidated Adjusted EBITDAre guidance led to higher outlooks for AFFO and AFFO per share, with AFFO per share expected to grow nearly 10% at the midpoint.

Hutcheson said the company ended the quarter with $348 million in unrestricted cash, $47 million in restricted cash for maintenance projects, and nearly $1.3 billion of total available liquidity. Ryman issued 5.865 million shares for approximately $690 million in gross proceeds and $700 million of senior unsecured notes during the quarter to fund the Grande Lakes acquisition. Its pro forma net leverage ratio was 4.4 times, based on full-year Adjusted EBITDAre contribution from Grande Lakes.

Looking toward 2027, management said it remained confident in its ability to meet or exceed the financial objectives presented at its 2024 investor day, citing improved group revenue pace, a higher corporate group mix, new project contributions and lower expected disruption from capital work than in 2026.

About Ryman Hospitality Properties (NYSE:RHP)

Ryman Hospitality Properties, Inc is a real estate investment trust that owns and invests in high-quality lodging and entertainment properties. The company focuses primarily on large-scale, group-oriented convention center resorts that serve business conferences, meetings, and leisure travelers.

Ryman's portfolio includes the Gaylord Hotels properties: Gaylord Opryland Resort & Convention Center in Nashville, Tennessee; Gaylord Palms Resort & Convention Center near Orlando, Florida; Gaylord Texan Resort & Convention Center near Dallas, Texas; Gaylord National Resort & Convention Center near Washington, DC; and Gaylord Rockies Resort & Convention Center near Denver, Colorado.

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