Ryman Hospitality’s Earnings Call: Strategic Gains Amid Challenges

Ryman Hospitality Properties ((RHP)) has held its Q2 earnings call. Read on for the main highlights of the call.

Ryman Hospitality Properties’ recent earnings call conveyed a cautiously optimistic outlook, balancing strategic achievements with market challenges. The company highlighted positive momentum from strategic acquisitions and strong group bookings, while acknowledging hurdles in Nashville and broader economic uncertainties. Overall, the sentiment was balanced, with positive highlights offsetting the challenges.

Strategic Acquisition of JW Marriott Desert Ridge

The acquisition of JW Marriott Desert Ridge in Phoenix, Arizona, marks a significant strategic milestone for Ryman Hospitality Properties. This acquisition is expected to drive value through its inclusion in the portfolio and incremental capital investment, with expectations to be accretive to the fiscal year 2026 results.

Record Entertainment Segment Revenue

Ryman’s Entertainment segment achieved record revenue of $143 million and adjusted EBITDAre of $34 million. This impressive performance was driven by recent investments in Category 10, Block 21, and Southern Entertainment, showcasing the company’s strategic focus on expanding its entertainment offerings.

Strong Bookings and Revenue Growth

The company reported strong group rooms revenue growth, with bookings for 2026 and 2027 up by 9% and 10%, respectively, compared to the same period last year. This growth is complemented by mid-single-digit ADR growth, indicating robust demand and pricing power.

Positive Operational Performance

Ryman delivered record consolidated revenue and the second-highest adjusted EBITDAre in the history of its same-store hospitality segment during the second quarter. This operational success underscores the company’s ability to execute its strategic objectives effectively.

Ongoing Capital Projects and Renovations

The company is actively investing in its properties, with the completion of presidential meeting space renovations at Gaylord Opryland and ongoing projects at Gaylord Texan and Gaylord National. These investments are aimed at enhancing guest experiences and maintaining competitive positioning.

Nashville Market Challenges

Ryman faced challenges in the Nashville market, where transient occupancy trends lagged due to new hotel supply. This caused some softness at Gaylord Opryland, highlighting the competitive pressures in the region.

Impact of Economic Uncertainties

Economic uncertainties, including tariffs, inflation, and interest rates, have led to cautious behavior among group and leisure customers. This caution could result in higher group attrition and cancellations, posing a potential risk to future performance.

Weather-Related Disruptions

Unfavorable weather conditions impacted festival attendance and margin performance in the Southern Entertainment business, illustrating the vulnerability of outdoor events to weather-related disruptions.

Lower Year-Over-Year Same-Store Hospitality Revenue

The same-store Hospitality segment reported an adjusted EBITDAre of $187 million, a decline of approximately $18 million year-over-year. This decrease was attributed to factors such as group mix shift and lower in-the-year-for-the-year bookings.

Forward-Looking Guidance

Ryman Hospitality Properties provided guidance for full-year 2025, projecting adjusted EBITDAre in the range of $767 million to $813 million. Despite challenges in the Nashville market, the company remains optimistic about future group bookings, with revenue for 2026 and 2027 expected to rise by 9% and 10%, respectively. The acquisition of JW Desert Ridge is anticipated to contribute significantly, generating $18 million to $22 million in adjusted EBITDAre for 2025.

In conclusion, Ryman Hospitality Properties’ earnings call presented a balanced view of its current performance and future prospects. While strategic acquisitions and strong bookings provide a positive outlook, challenges in Nashville and economic uncertainties remain areas to watch. The company’s strategic focus and operational execution continue to drive its growth trajectory.