• Consolidated Revenue Growth: 2% increase in Q4 compared to last year.
• Consolidated Adjusted EBITDAre Growth: 1% increase in Q4.
• Adjusted Funds From Operations (AFFO) Growth: 4% increase in Q4.
• Same-Store Hospitality Revenue: Approximately $496 million in Q4.
• Average Daily Rate (ADR): Increased 2% to $265, a new quarterly record.
• Entertainment Business Revenue: Record $98 million in Q4, a 12% increase year-over-year.
• Entertainment Business Adjusted EBITDAre Growth: 6% increase in Q4.
• 2025 RevPAR Growth Expectation: 2.25% to 4.75%.
• 2025 Total RevPAR Growth Expectation: 1.75% to 4.25%.
• 2025 Adjusted EBITDAre Expectation: $675 million to $715 million.
• 2025 Entertainment Segment Adjusted EBITDAre Expectation: $110 million to $120 million.
• 2025 Consolidated Adjusted EBITDAre Expectation: $749 million to $801 million.
• 2025 AFFO Expectation: $510 million to $555 million.
• 2025 AFFO Per Diluted Share Expectation: $8.24 to $8.86.
• Net Leverage Ratio: 3.9 times at the end of the quarter.
• Available Liquidity: Approximately $1.2 billion.
• 2025 Capital Investment Expectation: Approximately $400 million to $500 million.

• Warning! GuruFocus has detected 3 Warning Signs with RHP.

Release Date: February 21, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Ryman Hospitality Properties Inc (NYSE:RHP) reported a consolidated revenue growth of 8% and adjusted EBITDAre growth of 10% for the full year 2024.
• The company achieved record bookings production in the fourth quarter, with 1.3 million same-store group room nights booked for all future years.
• RHP's Entertainment segment reported record revenue of $98 million in the fourth quarter, an increase of approximately 12% year-over-year.
• The Gaylord Rockies and Gaylord National properties achieved significant milestones, with the Rockies delivering record revenue in December.
• RHP's strategic investment in Southern Entertainment is expected to enhance its platform for live music experiences and connect with more country music fans.

Negative Points

• Fourth quarter results were marginally below guidance due to factors impacting the same-store hospitality portfolio in December.
• Leisure demand at Gaylord Texan and Gaylord Opryland did not meet expectations during the peak holiday period, affecting overall performance.
• The company anticipates construction disruption to impact RevPAR and adjusted EBITDAre in 2025, with a $30 million to $35 million impact expected.
• RHP experienced a decrease in overnight stays during the holiday period, attributed to consumer price sensitivity and macroeconomic uncertainty.
• The company faces challenges in managing labor and wage costs, with a 3% to 4% increase expected in 2025.

Q & A Highlights

Q: Can you discuss the renovations planned beyond the current ones and whether the renovation headwinds in 2025 are likely to be the peak? A: Patrick Chaffin, Executive Vice President & Chief Operating Officer, explained that work at Gaylord Opryland around the Presidential ballroom is nearly complete, with associated spaces finishing by June. The space expansion at Gaylord Opryland will continue into 2027. The renovation of rooms at Gaylord Texan will begin in the second quarter of this year and finish by the second quarter of next year. The disruption in 2025 is expected to be comparable to 2024, with more volume but similar disruption levels.

Q: How much did labor and wage costs increase in 2024, and what are the expectations for 2025? A: Patrick Chaffin noted a 3.3% increase in wages year-over-year, with similar expectations for 2025. The full-year impact of the collective bargaining agreement with Gaylord National is included. Overall, a 3% to 4% increase in wage and labor costs is anticipated.

Q: Are there any changes in the profile of who is booking, such as associations or trade shows? A: Patrick Chaffin stated that the company is focusing on attracting higher-rated corporate business, particularly at Gaylord Opryland. While association business remains important, there is a shift towards more corporate bookings, driven by investments that make the properties more appealing to corporate groups.

Q: Regarding the ICE results at Texan and Opryland, is the demand typically local, and do you think there was a trend change in those markets? A: Mark Fioravanti explained that ICE demand is more local and short-driving. While admissions were flat, there was a decrease in overnight stays, possibly due to lower-rated customers opting for day visits instead. The company is analyzing customer behavior to understand these trends better.

Q: Are there more announcements like the Opryland meeting space expansion in the background, or is the CapEx plan through 2027 set? A: Colin Reed mentioned that future expansions depend on demand characteristics and meeting planner activity. If forward demand continues to grow, additional room and meeting space expansions may be considered. The company is focused on deploying capital at high rates of return.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.