Ryman Hospitality Properties Inc (RHP) Q1 2026 Earnings Call Highlights: Strong Start with ...

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Same-Store ADR Increase: Just over 5% year-over-year. Banquet and AV Revenue Contribution: Increased more than 6% year-over-year. Group Room Nights Booked: Increased nearly 27% year-over-year. JW Marriott Desert Ridge ADR Increase: Nearly 8% year-over-year. JW Marriott Desert Ridge Banquet and AV Revenue: Up 25% year-over-year. Unrestricted Cash on Hand: $424 million at the end of the first quarter. Total Available Liquidity: Approximately $1.35 billion. Pro Forma Net Leverage Ratio: 4.3x based on total consolidated net debt to adjusted EBITDAre. Senior Unsecured Notes Issued: $700 million due 2034. Capital Expenditures Outlook: $350 million to $450 million for the year.

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Release Date: May 01, 2026

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

Positive Points

Ryman Hospitality Properties Inc (NYSE:RHP) delivered a strong start to the year with results exceeding expectations, showcasing the quality of their assets and business model. The company reported record first-quarter revenue and adjusted EBITDA for several properties, including Gaylord Opryland, Gaylord Rockies, and Gaylord Palms. The JW Marriott Desert Ridge, acquired less than a year ago, showed strong first-quarter results, indicating the benefits of RHP's ownership and strategy. RHP's entertainment segment, particularly the Allred brand, continues to perform well, with strong demand in markets like Nashville and Las Vegas. The company is actively pursuing growth opportunities, including a new development partnership in Indianapolis, enhancing its platform and value proposition for artists and consumers.

Negative Points

The company faces a complex geopolitical backdrop, which could impact future performance. There is some caution regarding potential macroeconomic headwinds, such as higher gas prices and potential rate hikes, which could affect leisure demand and meeting budgets. The entertainment segment experienced a year-over-year decline in the first quarter due to challenging comparisons and seasonality. RHP's future group pace for 2027 and 2028 shows some challenges due to changes in inventory management and year-over-year comparisons. The company acknowledges potential volatility in the economy, particularly with uncertainties in the Middle East and the impact on oil prices.

Q & A Highlights

Q: Are you expecting to get much business from the World Cup at your Dallas property, and have you experienced any FIFA cancellations? A: The World Cup will have a marginal impact on our Dallas property. We already have a substantial level of group room nights booked, but it will help us trend at a higher rate. Overall, Dallas is seeing a positive impact, and we should see some lift in ADR as well.

Story Continues

Q: How are you thinking about the guidance, especially regarding leisure trends and potential impacts from fuel prices? A: Our outlook for the rest of the year remains unchanged, reflecting measured confidence. We are raising our full-year guidance due to strong first-quarter trends. Leading indicators remain resilient, with improved attrition and strong group bookings. However, we remain cautious due to potential macroeconomic volatility.

Q: Can you provide more details on the cancellation and attrition rates during the quarter? A: Attrition was lower year-over-year for February and March, excluding the impact of the January winter storm. Cancellations were essentially flat, and trends in April continue to support this positive outlook.

Q: Could you elaborate on the future group pace for 2027 and 2028 and the impact of inventory management changes? A: Our strategy focuses on refining our group strategy to maximize hotel performance by making inventory available for premium corporate groups. This involves holding more inventory for corporate bookings, which have a shorter booking window. We are confident in achieving our booking goals due to strong corporate demand trends and increased corporate mix.

Q: How do you view the strong corporate booking trends in light of macroeconomic headwinds? A: Despite macroeconomic concerns, corporate America is in good shape, with strong profits and market performance. Our strategy to focus on higher-rated corporate business is supported by underlying economic strength, and we expect this trend to continue.

Q: What is the outlook for OEG's EBITDA growth, and when might you consider expanding management for a potential spin-off? A: OEG has a robust growth pipeline, and we have made organizational additions to support this growth. We continue to expand our capabilities and technology, and we are excited about the future growth prospects over the next few years.

Q: Regarding the JW Marriott Desert Ridge, does the recent performance change your long-term view on the property? A: The outperformance in the first quarter was positive, but our long-term view remains unchanged. We are on track with our financial expectations and continue to refine our capital strategy for the property without significant capital strain.

Q: Can you quantify the target mix shift in your group booking strategy, and how does it affect the risk profile? A: We aim to increase corporate mix by a few points, focusing on premium customers across all segments. This shift should not materially change earnings volatility, as contracted room nights provide stability, and corporate cancellation fees are easier to collect.

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

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