Ryman Hospitality Properties (RHP, Financials), a Nashville-based real estate investment trust specializing in upscale convention center resorts and entertainment venues, has been assigned an Outperform rating by BMO Capital Markets.
Analyst Ari Klein underlined the company's strategic concentration on group-oriented bookings, which account for 74% of its business mixmuch more than the 25% to 40% average among industry rivals. Klein says this specialization offers improved income visibility and supports industry-leading earnings before interest, taxes, depreciation, and amortization per key.
Klein expects Ryman's continuous refurbishment projects and expected group booking pace rise of 12% in 2026 and 10% in 2027 to support the company's expansion, hence generating continuous outperformance compared to its competitors. Though exact plans have not been revealed, he also mentioned the possible financial gains from Ryman's 70% share in Opryland Entertainment Group going forward.
Originally established in 1955, Ryman Hospitality Properties, under Marriott International's management, owns and runs a portfolio including the Gaylord Hotels brand. across 11,400 rooms and more than 3 million square feet of conference space spread across many sites define the company's assets. Ryman's entertainment value, including the Grand Ole Opry and Ryman Auditorium, supports its prominence in the country music business as well.
Strategic focus of the corporation on group bookings fits more general market trends. With revenue per available room for group travel rising by 6.8% in the first eight months of 2024 compared to the same time in 2023, group travel has been a major driver for the hotel industry, as The Wall Street Journal reports.
Recent institutional investments point to Ryman's unique strategy continuing appeal to investors. For example, Cinctive Capital Management LP bought 33,410 Ryman shares during the third quarter for around $3.58 million.
The optimistic view of BMO Capital Markets generally reflects confidence in Ryman Hospitality Properties' strategic orientation and development prospects in the accommodation and entertainment industries.
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