Ryman Hospitality Properties, Inc. (NYSE: RHP) Reports Record Q3 2024 Results

Ryman Hospitality Properties, Inc., a leading lodging real estate investment trust specializing in upscale convention center resorts, has reported record consolidated total revenue of $550 million in the third quarter of 2024, marking a 4.1% increase year-over-year.

The company's adjusted EBITDAre also rose to $175 million, up 2.3% from the previous year. This financial growth is attributed to strong performance in both the hospitality and entertainment segments, with the Ole Red brand contributing significantly to the latter's record revenue.

Key Takeaways

• Ryman Hospitality Properties achieved record consolidated total revenue of $550 million in Q3 2024.
• Adjusted EBITDAre increased to $175 million, up by 2.3% year-over-year.
• The company raised the midpoint for its consolidated adjusted EBITDAre guidance for 2024 to $770.5 million.
• Capital investments exceeding $1 billion are in progress, including projects at Gaylord Rockies and Gaylord Opryland.
• A new venue, Category 10, opened in Nashville and is set to fully launch in early 2025.
• The company declared a quarterly dividend of $1.15, a 4.5% increase from the previous distribution.

Company Outlook

• Ryman Hospitality revised its 2024 guidance, tightening RevPAR growth and adjusted EBITDAre ranges due to market softness and construction disruptions.
• The midpoint for consolidated adjusted EBITDAre guidance was raised to $770.5 million, reflecting an 11.5% increase from the prior year.
• Full-year 2024 capital investments are expected to be between $400 million and $450 million.
• The company is exploring a potential expansion at the Gaylord Rockies, targeting 450 additional rooms.

Bearish Highlights

• The company noted leisure softness in certain markets and construction disruptions as factors necessitating guidance revisions.
• Executives discussed the impact of Hurricane Milton, which contributed to the need for adjustments in the guidance.

Bullish Highlights

• Ryman Hospitality reported success in its multiyear investment strategy, with growth in revenue for 2026 and 2027.
• The company remains optimistic about ongoing performance and future growth opportunities, including a focus on increasing room rates towards an 80% occupancy goal.

Misses

• Adjusted EBITDAre for the JW Marriott Hill Country remained stable year-over-year at $17.5 million, despite increased investments.

Q&A Highlights

• Executives emphasized strong rate growth despite potential lower occupancy levels.
• The San Diego market's new hotel has positively contributed to bookings, with over 200,000 room nights booked at a 9% premium on average daily rate (ADR).
• The company has successfully improved margins despite wage pressures by enhancing efficiencies and driving both leisure and group rates.

Ryman Hospitality Properties, Inc. has concluded a successful third quarter, with record revenues and a confident outlook for the future. The company's strategic investments in properties and entertainment venues, such as the newly opened Category 10 in Nashville, are expected to drive continued growth and customer satisfaction. Despite facing some headwinds, such as market softness and the impact of Hurricane Milton, Ryman Hospitality is well-positioned with a strong liquidity profile and a focus on operational efficiency to navigate challenges and capitalize on opportunities in the hospitality industry.

InvestingPro Insights

Ryman Hospitality Properties' strong financial performance in Q3 2024 is further supported by data from InvestingPro. The company's revenue growth of 12.62% over the last twelve months aligns with the record consolidated total revenue reported in the article. This growth trajectory is complemented by a robust EBITDA growth of 16.99% over the same period, underscoring the company's ability to translate top-line growth into improved profitability.

InvestingPro Tips highlight that RHP is trading at a low P/E ratio concerning its near-term earnings growth, with a PEG ratio of 0.39. This suggests that the stock may be undervalued given its growth prospects, which could be attractive for value-oriented investors. Additionally, the company's dividend yield of 4.06% and a 10% dividend growth rate over the last twelve months reinforce its commitment to shareholder returns, as mentioned in the article's discussion of the increased quarterly dividend.

The company's profitability is further emphasized by an InvestingPro Tip indicating that RHP has been profitable over the last twelve months, with a healthy operating income margin of 21.54%. This profitability, coupled with the fact that liquid assets exceed short-term obligations, points to a solid financial foundation that supports the company's ambitious capital investment plans outlined in the article.

Full transcript – Ryman Hospitality Properties Inc (RHP) Q3 2024:
– Operator: Good day, everyone, and welcome to the Ryman Hospitality Properties Third Quarter 2024 Earnings Conference Call…
– Jennifer Hutcheson: Good morning. Thank you for joining us today…
– Colin Reed: Thank you, Jen, and good morning, everyone. We are pleased to report strong third quarter 2024 results…
– Mark Fioravanti: Thanks, Colin. Good morning, everyone. I'll provide a review of the third quarter…
– Jennifer Hutcheson: Thanks, Mark. We ended the third quarter with $535 million of unrestricted cash on hand…

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