Ryman Hospitality Signals Strength With Group-Led Surge

Ryman Hospitality Properties ((RHP)) has held its Q1 earnings call. Read on for the main highlights of the call.

Ryman Hospitality Properties struck an upbeat tone on its latest earnings call, highlighting strong same-store results, record performances at flagship resorts, and powerful group booking trends that outweighed pockets of softness in entertainment and weather-related disruption. Management repeatedly emphasized healthy margins, disciplined capital allocation, and ample liquidity as buffers against macro and geopolitical risks.

Strong Same-Store Hospitality Performance

Same-store hospitality operations grew revenue and market share while expanding margins, even with slightly fewer room nights sold, underscoring the power of pricing and mix. Average daily rate rose just over 5% from a year ago, driven by disciplined yield management and a shift toward higher-value guests who spend more both in and outside the room.

Record Results at Flagship Gaylord Properties

The company’s core Gaylord portfolio delivered standout quarters, reinforcing its position in large-group hospitality. Gaylord Opryland posted record first-quarter revenue and Adjusted EBITDAre, Gaylord Rockies achieved record first-quarter revenue, and Gaylord Palms set all-time records for revenue and Adjusted EBITDAre in any quarter.

JW Marriott Desert Ridge Surpasses Expectations

The recently acquired JW Marriott Desert Ridge continued to outperform under Ryman’s ownership, with total ADR climbing nearly 8% year over year and group mix rising by about 200 basis points. Group demand grew more than 9%, banquet and AV revenue jumped 25%, and management converted 5,000 square feet into new meeting space to support further group-led growth.

Group Bookings and Forward Pace Accelerate

Group demand emerged as a central pillar of the quarter, with gross group room nights booked for all future periods up nearly 27% versus last year, marking the strongest first-quarter production since 2018. Corporate customers represented roughly two-thirds of that production, and same-store group rooms revenue on the books accelerated from 6.5% at year-end to 7.6% by March 31, signaling momentum into future periods.

Quality of Group Business Continues to Improve

Management stressed that it is not just the volume of group demand that is improving but also its quality, with a pronounced shift toward premium corporate groups that support higher ADRs and richer spending on food, beverage, and ancillary services. For the balance of 2026, the company is assuming mid-single-digit growth in group ADR and mid-single-digit growth in group rooms revenue at the midpoint, suggesting continued pricing power.

Robust Liquidity and Proactive Balance Sheet Moves

Ryman ended the quarter with $424 million in unrestricted cash, $27 million in restricted cash, and undrawn revolving credit capacity that lifted total available liquidity to about $1.35 billion. The company also completed an opportunistic refinancing, issuing $700 million of senior notes due 2034 and redeeming 2027 notes, effectively extending its debt maturity profile and removing meaningful refinancing risk through 2028.

Guidance Upgrade and Confidence in 2027 Targets

On the back of Q1 outperformance, Ryman raised the midpoints of its full-year guidance ranges and reiterated confidence in the 2027 Adjusted EBITDAre targets it set earlier this year. Management cited the strength of forward bookings, the contribution from Desert Ridge, and ongoing capital investments as key drivers underpinning its belief that the company can meet those longer-term profitability objectives.

CapEx Discipline and On-Track Projects

Capital spending expectations remain unchanged at $350 million to $450 million for the year, reflecting a disciplined approach to growth investments. Major projects, including the Foundry Fieldhouse at Gaylord Opryland, meeting space conversion at Desert Ridge, renovations at JW Hill Country and Gaylord Texan, and the Category 10 Las Vegas concept, are all reported to be progressing on time and within budget.

Entertainment Growth in Select Venues and Pipeline

The Entertainment segment produced mixed results, but management highlighted strong performance at key venues where recent investments are ramping. Ole Red and Category 10 exceeded expectations, with Ole Red Las Vegas delivering its best month ever in March, and the Opry Entertainment Group continues to build out a robust development pipeline supported by added senior talent and expanded capabilities.

Year-Over-Year Pressure in Entertainment Segment

Despite those bright spots, the Entertainment portfolio posted a year-over-year decline in Q1, largely due to very tough comparisons against last year’s performance and seasonality tied to a newer business line. The impact of winter storm Fern further pressured results, highlighting that this segment remains more volatile, even as the underlying concepts show promise.

Inventory Management and Booking Comparability in Out Years

Management acknowledged that deliberate inventory management choices are creating choppy year-over-year comparisons for 2027 and 2028 bookings as the company holds back more inventory for premium corporate groups. As of March 31, same-store group rooms revenue on the books for 2027 was up more than 3%, while 2028 was down 1%, dynamics the company framed as near-term comparability noise in service of better long-term yield.

Weather Disruption and Early-Quarter Attrition

Winter storm Fern materially hit January operations, elevating attrition and clouding the early-quarter run-rate, particularly in Entertainment and some hospitality segments. Excluding January, attrition metrics improved and cancellations were essentially flat versus the prior year, but the storm’s fallout still weighed on reported first-quarter comparisons.

Macro and Geopolitical Sensitivities

Executives flagged macro and geopolitical risk as meaningful watch points, including Middle East tensions that could push oil prices higher and reignite inflationary pressures. They also pointed to potential central bank decisions and broader economic uncertainty as factors that might squeeze meeting planners’ budgets or temper leisure travel demand, particularly among more price-sensitive guests.

Mixed Leisure Trends and Gas Price Exposure

Leisure trends are more subdued than the group side, with the company’s base case assuming roughly flat leisure performance versus last year, reflecting some normalization after strong post-pandemic demand. Management’s downside scenario includes weaker leisure volumes if fuel prices rise, underscoring how sensitive drive-to leisure traffic can be to swings in gasoline costs.

Guidance and Outlook Emphasize Group Strength

Looking ahead, Ryman’s updated outlook calls for mid-single-digit growth in group rooms revenue and broadly flat leisure performance for the full year, with same-store RevPAR growth expected to accelerate as 2026 progresses and the third quarter forecast as the strongest for both revenue and margins. Entertainment is projected to contribute most in the second and fourth quarters, while liquidity of about $1.35 billion, roughly 4.3x pro forma net leverage, and steady CapEx plans give management room to support growth initiatives and navigate potential macro volatility.

Ryman’s call painted a picture of a group-centric hospitality platform firing on most cylinders, with record results at key properties and surging corporate bookings offsetting entertainment volatility and weather disruption. For investors, the main takeaways are strengthening pricing power, improving mix quality, and a fortified balance sheet that together underpin upgraded guidance and sustained confidence in hitting the company’s 2027 financial targets.