Ryman Hospitality's OEG Sale Initiation and Strategic Shift Clash in 2026 Q2 Earnings Call

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Date of Call: Aug 7, 2026

Financials Results

• Operating Margin: Adjusted EBITDA RE outperformance was primarily top-line driven... Strong operating discipline.

Guidance:

• Raised midpoints of same-store hospitality and JW same-store hospitality adjusted EBITDA RE guidance ranges by $10M and $3M, respectively, incorporating the $7M second quarter beat.
• Expect roughly flat same-store leisure rooms revenue performance.
• Expect low to mid-single-digit total REVPAR growth in Q3, accelerating to mid-single-digit growth in Q4.
• Expect low to mid-single-digit growth in same-store Christmas revenue in Q4.
• Expect strongest adjusted EBITDA RE margin growth in Q3.
• Expect entertainment adjusted EBITDA RE to be more heavily weighted to Q4.
• Capital expenditures expected to be approximately $450M at the midpoint for 2026, up from prior expectation of $400M.

Business Commentary:

Strong Performance and Business Model Resilience:

• Ryman Hospitality Properties delivered an outstanding performance with same-store hospitality business and total RevPAR growth exceeding expectations by approximately 2.5 points, while adjusted EBITDA RE outperformance was driven by a combination of group and leisure outperformance.
• The resilience of their business model was reinforced by strong group meetings demand, a strategy attracting higher value customers, and strategic investments across their portfolio.

Group Business and Catering Growth:

• Group ADR increased 7.5% year-over-year, driven by a higher mix of premium group customers, and catering contribution per group room night increased nearly 13% year-over-year.
• This growth was a result of a focused premium group strategy and investments that enhanced the value proposition of their assets.

Leisure Segment and Market Performance:

• Leisure ADR was a primary driver of year-over-year productivity, especially at Gaylord Texan and J.W. Hill Country, leading to record revenue at several properties.
• The performance was buoyed by constrained leisure room availability and strong group bookings.

Entertainment Business Growth:

• The entertainment sector saw a nearly 30% year-over-year increase in revenue, with Southern Entertainment's festivals reaching quarterly records.
• This was supported by strong consumer spending, disciplined execution, and favorable category performance.

Capital Investments and Future Plans:

• The company plans to spend approximately $450 million on capital expenditures in 2026, reflecting improved visibility into project cash flows and a decision to accelerate certain projects.
• These investments are aimed at enhancing asset competitive positions and supporting long-term growth objectives.

Sentiment Analysis:

Overall Tone: Positive

• "We're pleased to have delivered another standout performance this quarter... we're encouraged by what it says about the strength and resilience of our business model." "Customer spending trends continue to generate near-term upside. Group demand remains resilient... The investments we've made... are enabling us to capture that upside and outperform our competitive sets." "Taken together, these trends reinforce our confidence in our outlook for this we've set a few years ago and the longer-term earnings growth potential of the portfolio."

Q&A:

• Question from Dan Politzer (J.P. Morgan): Where do things stand in terms of the relationship with Marriott and some of the other brands? How do you think about management fees and royalty rates as it relates to your properties going forward?
  Response: Management described the relationship with Marriott as very positive and aligned, focused on driving profitability and fee revenue.

• Question from an unnamed analyst: Regarding the potential sale of OEG, why now? What are you thinking about the timing and deployment of proceeds?
  Response: The board initiated discussions due to increased investor interest in entertainment and music; no agreements have been reached, and any transaction would likely result in proceeds being distributed via dividends.

• Question from an unnamed analyst (Ari): What have you been seeing from a cross-group selling or rotational ownership standpoint for the JW portfolio, and what are the benefits?
  Response: The JW portfolio strategy is working well, with increased multi-year group rotations and strong lead volume, enhancing growth and value.

• Question from Mark Fioravanti (Ryman Hospitality Properties): With Marriott rolling out the ITR, what percentage of your hotels do you believe would qualify for that?
  Response: Management is still working with Marriott to compile details and is not yet comfortable providing an estimate of the impact.

• Question from Chris Woronka (Deutsche Bank): Which group business bucket (associations, corporate, etc.) has the most pricing opportunity going forward?
  Response: The focus is on increasing higher-rated corporate room nights, with investments in assets and targeted group identification driving strong rate growth across segments.

• Question from an unnamed analyst (David): What is your appetite and inclination regarding potential acquisitions, given market rumors?
  Response: Management is not commenting on market rumors and reiterated that their acquisition strategy is focused on specific, large hotels in attractive markets, with limited new product available.

• Question from an unnamed analyst: Can you parse out the impact of mix vs. underlying price increases on ADR, and detail group share gains?
  Response: Q2 outperformance was driven more by pure pricing strength and investment-driven excitement rather than a mix shift; strong catering spend and premium group strategy also contributed.

• Question from Dwayne (via Jennifer Hutchison): Is the $50M increase in 2026 CapEx an acceleration shifting from 2027, freeing up funds next year?
  Response: The increase is a shift in acceleration due to project timing efficiency; no guidance yet for 2027 capital, but the company will consider project sequencing.

• Question from Jay Cornrich (Cantor Fitzgerald): What ADR upside is implied in T+1 bookings for 2027, and what is the expected starting occupancy level?
  Response: For 2027, ADR on the books is up mid-single digits, driving revenue; the company is positioned for around 50 points of occupancy, with favorable patterns and value proposition enhancements.

• Question from Jack (via Patrick Chaffin): Can you discuss positive or negative surprises in Q2 expenses (labor, utilities) and the trajectory for the back half?
  Response: Q2 achieved 46% flow-through vs. target of 40%, driven by effective labor management and procurement gains; utilities are being managed with investments like a solar array to reduce costs over time.

• Question from John (via Jennifer Hutchison & Mark Fioravanti): Does the back half guidance include the higher spending levels seen in Q2, and what is the expected cadence?
  Response: Guidance reflects the strong book of group business and outperformance in banquets; H2 RevPAR growth will be occupancy-driven vs. rate-driven in H1, with potential upside from new ICE themes.

• Question from Rich: When discussing gaining share, are you using a defined comp set or broader market?
  Response: Share gains are measured against a defined comp set for each hotel, which includes similar-sized properties even outside close proximity, ensuring accurate performance comparison.

Contradiction Point 1

Initiation of OEG Sale Process

Contradiction on who initiated discussions about selling the Opry Entertainment Group.

What were the key points discussed in Smead's latest earnings call? - Smead

2026Q2: The board initiated discussions in response to strong investor interest in live entertainment and music globally. - [Colin Reed](Executive Chairman) and [Mark Fioravanti](CEO)

What is the rationale behind pursuing the potential sale of OEG now, and how are you approaching the timing, potential buyers, and deployment of proceeds? - Smedes Rose (Citi)

2026Q2: The process began due to unsolicited inbound calls from potential investors interested in live entertainment and music. - [Colin Reed](Executive Chairman) and [Mark Fioravanti](CEO)

Contradiction Point 2

Definition of Share Gains

Contradiction on whether share gains are measured against a defined competition set or can include broader market gains.

Questioner (Rich) - Questioner (Rich)

2026Q2: Share gains are measured against the defined competition set for each property, which may include hotels outside the immediate drive-in area... - [Patrick Chaffin](COO) and [Mark Fioravanti](CEO)

Are you gaining share in the defined comp set index or broader markets, including areas where Ryman doesn't have an asset? - Rich Hightower (Barclays)

2026Q2: The company is gaining share across the board, with Gaylord Opryland and Gaylord National standing out in Q2. - [Colin Reed](Executive Chairman) and [Mark Fioravanti](CEO)

Contradiction Point 3

Capital Expenditure (CapEx) Timing

Contradiction on whether the 2026 CapEx increase frees up capacity for 2027.

Questioner (Dwayne) - Questioner (Dwayne)

2026Q2: The increase is a shift in timing due to project sequencing decisions. The company has not provided guidance for 2027 capital yet... - [Jennifer Hutchison](CFO)

Does the $50M acceleration of 2026 CapEx from 2027 free up capacity for 2027? - Questioner (Jack)

2026Q1: The company is only interested in specific, large, unique hotels in certain markets that align with its long-term thesis, not in replicating the businesses of competitors who have overbuilt. - [Mark Fioravanti](CEO), [Colin Reed](Executive Chairman)

Contradiction Point 4

Future Growth Strategy for the OEG (Opry Entertainment Group)

Contradiction on the strategic focus for OEG's growth and management.

Questioner (Name not specified, referenced in transcript as "Smead") - Questioner (Name not specified, referenced in transcript as "Smead")

2026Q2: The board initiated discussions in response to strong investor interest in live entertainment and music globally. The goal is to find a partner that can provide the business with greater independence while preserving its legacy and growth trajectory. - [Colin Reed](Executive Chairman), [Mark Fioravanti](CEO)

Why is the potential sale of OEG (Opry Entertainment Group) being pursued now, and how are you thinking about the timing, potential buyers, and deployment of proceeds? - Cooper Clark (Wells Fargo Securities, LLC)

2026Q1: OEG has a robust pipeline of confirmed growth. Organizational additions continue (e.g., new COO, CMO, talent in festivals/amphitheaters, artist partnerships). Growth is expected over the next 2-3 years, supported by these organizational and technological expansions. - [Unknown Executive](Executive), [Colin Reed](Executive Chairman)

Contradiction Point 5

Group Business Mix and Pricing Strategy

Contradictory statements on the corporate group mix's impact on RevPAR growth.

Chris Woronka (Deutsche Bank) - Chris Woronka (Deutsche Bank)

2026Q2: The strategy is focused on mixing towards higher-rated corporate room nights, which is showing strong results... This is evidenced by ~200% growth in SMRF room nights and strong corporate lead volume. - [Patrick Chaffin](Executive) and [Colin Reed](Executive Chairman)

Which business segments (e.g., associations, corporate) offer the most pricing opportunity, and where are you seeing strength in pricing and booking curves? - Aryeh Klein (BMO Capital Markets)

20260224-2025 Q4: The company also gains from premium non-corporate groups. The 3-point mix shift is a factor, but overall RevPAR growth is tempered by the larger base. - [Jennifer Hutcheson](CFO)

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