Q3 2026 Ryman Hospitality Properties Inc Earnings Conference Call - RYMAN HOSPITALITY PROPERTIES INC

Explicit Guidance:

• Raised the midpoint of Q4 2026 same-store hospitality revenue guidance due to a modest increase in leisure demand expectations.
• Q4 2026 Leisure Demand: Midpoint assumes low single-digit growth (excluding renovation disruption at JW Hill Country).
• Full Year 2026 Adjusted EBITDA RE: Lowered midpoint by $3 million, reflecting General Jackson Showboat maintenance disruptions and wind-down costs.
• 2026 Adjusted EBITDA RE: Net increase to consolidated outlook implies AFFO per share growth of nearly 10% at the midpoint.
• 2026 Capital Expenditures (CapEx): Narrowed range to $450–$500 million (reflecting visibility into spending timing; scope remains unchanged).
• 2027 Financial Objectives: Management remains confident to meet or exceed previously stated 2024 Investor Day targets for Adjusted EBITDA RE and AFFO per fully diluted share.
• 2027 Capital Planning: Expects lower disruption to portfolio profitability in 2027 compared to 2026 due to project completion.
• Dividend Policy: Intention to continue distributing 100% of REIT taxable income via dividends over time.

Business-Segment Outlook:

• Group Hospitality: Same-store group rooms revenue on the books for 2027 is 4.5% higher than the prior year; ADR pacing in mid-single digits. Corporate group mix is 300 basis points higher than prior year. Net group room nights for 2028 are 1% higher than prior year.
• Group Pacing: Revenue pace for 2027 and 2028 improved sequentially during Q3; 2028 pace improved 150 basis points since end of July.
• Leisure Hospitality: Q4 2026 holiday performance viewed as "cautiously optimistic"; ICE (Ice Follies/Entertainment) ticket sales pacing ahead of 2025; leisure room nights for Nov/Dec 2026 pacing ahead of prior year.
• New Acquisitions: Grand Lakes Orlando to provide ~4 months of operating contribution in 2026; long-term value creation via group customer rotation, portfolio synergies, and Ritz-Carlton customer insights. JW Desert Ridge delivered in-line results with 17% group demand growth; ice programming to be introduced late 2026.
• Entertainment (OEG): Record Q3 revenue (+1.5%); General Jackson retirement expected to negatively impact full-year profitability by $3 million midpoint; new units planned for Orlando and Lampang (Thailand) in early 2028.
• Product & Capacity: JW Hill Country rooms renovation, event lawn enhancements, and lobby renovation (Phase 1) to complete March 2027. Gaylord Opryland meeting space expansion opens mid-year 2027. Opryland room renovations (Magnolia/Garden sections) to begin mid-2027. Rockies expansion remains the next major capital project (timeline TBD).

Market and Competitive Outlook:

• Supply Dynamics: No meaningful new supply currently under construction; large group business has few alternatives.
• Pricing & Value: Premium group strategy driving incremental on-property spend; banquet/AV revenues up 14% YoY. SMRF groups achieved $316 ADR (up 26% from prior year).
• Market Share: Strategy aims to capture meeting planners' entire book of business across portfolio (e.g., Gaylord for large meetings, JW/Ritz for executive/overflow).
• Orlando Market: Grand Lakes acquisition adds to Ryman's footprint in the #1 meetings market; minimal overlap (<17%) between Palms and Grand Lakes groups suggests rotational potential.
• Fintech Sector: Targeting growth in fintech group business; success limited by availability constraints rather than demand.

Macro / Industry Outlook:

• Group Behavior: Meeting planners demonstrating confidence to spend within budgets; "incremental revenue" trends expected to persist if macro conditions do not worsen.
• Attrition/Cancellations: Expecting continued favorable trends in attrition and cancellation activity.
• Regulatory/Policy: No specific macroeconomic headwinds (rates, tariffs) detailed beyond general caution on "uncertain macroeconomic conditions."
• OEG Independence: Board continues to evaluate third-party investment/IPO for OEG; no definitive agreements reached; IPO rights unexercised for four years.

Strategic Initiatives:

• Acquisition Integration: Integrating Grand Lakes (Ritz-Carlton) to establish nationwide rotational pattern for JW Marriott customers; focusing on efficiency in food & beverage and housekeeping to improve margins.
• Brand Optimization: Seeking to drive efficiencies in Ritz-Carlton operations to align with high EBITDA-per-room goals while honoring luxury brand standards.
• Capital Allocation: Selective external growth; prioritizing high-return internal capital deployment (room additions, F&B expansion) over acquisitions.
• Operational Efficiencies: Migration to Coca-Cola (procurement) and other supply changes to leverage Marriott fee relief; waiting for full-year rebate cycle data to quantify impact.
• Asset Lifecycle: Retired General Jackson Showboat after 40+ years due to maintenance costs and operational disruptions; no replacement planned immediately.

Risks and Headwinds to Outlook:

• Seasonality: OEG Q3 is historically a lighter contributor to profitability due to weather and show calendars.
• Asset Disruption: General Jackson operational disruptions significantly impacted Q3 and full-year outlook; future disruptions to be managed.
• Macro Uncertainty: Outlook assumes no worsening or increased uncertainty in macroeconomic conditions affecting corporate spending.
• Renovation Impacts: Q4 2026 leisure demand excludes renovation disruption at JW Hill Country.
• Integration Uncertainty: Realizing full synergies and margin improvements from Grand Lakes/Ritz-Carlton acquisition expected over 12–18 months.
• Investor Day Targets: 2027 financial objectives are subject to ongoing budget process with Marriott.

Management Tone on the Future:

• Confidence: "Very proud," "best times are ahead," "cautiously optimistic," and "confident" in meeting 2027 objectives.
• Strategic Focus: Strong emphasis on capital allocation, premium group strategy, and operational discipline.
• Shareholder Value: High focus on AFFO per share growth as a primary value creation metric.
• Operational Health: View of business as "flourishing" and "healthy" despite a "somewhat crazy world."
• Hedges: Caveated that 2027 guidance is pre-budget finalization; OEG investment status remains non-definitive.

Miscellaneous:

• Pro Forma Leverage: Net leverage ratio of 4.4x (total net debt to Adjusted EBITDA RE) including four-year contribution from Grand Lakes.
• Liquidity: Nearly $1.3 billion in total available liquidity at quarter-end.
• Acquisition Financing: Grand Lakes funded by $690M equity (5.865M shares) and $700M senior notes; both heavily oversubscribed.