Ryman Hospitality Properties: A High-Yield REIT with Diversified Earnings and Stable Dividend Growth

Ryman Hospitality Properties, Inc. (RHP) has emerged as a standout in the real estate investment trust (REIT) sector, combining luxury hospitality with entertainment assets to create a hybrid business model that enhances earnings stability and dividend sustainability. As the company navigates a competitive market and construction-related disruptions, its strategic integration of upscale hotels and iconic entertainment brands positions it as a compelling long-term income play for investors seeking resilience and growth.

A Hybrid Model Driving Diversified Earnings

RHP's unique approach blends luxury hospitality with entertainment, leveraging its portfolio of five of the top 10 largest non-gaming convention center hotels in the U.S.. These properties, including the Gaylord Opryland Resort & Convention Center and Gaylord Palms Resort & Convention Center, are managed by Marriott International and generate consistent revenue through high-demand group bookings and conventions. In 2024, the Hospitality segment contributed $1.997 billion in revenue, while the Entertainment segment added $98.2 million in Q4 alone. This diversification reduces reliance on any single revenue stream, insulating the company from sector-specific downturns.

The Entertainment segment, which includes the Grand Ole Opry, Ryman Auditorium, and Ole Red, operates as a taxable REIT subsidiary and serves as a cultural anchor in Nashville. By integrating these assets, RHP enhances its brand appeal and attracts visitors who contribute to hotel occupancy and ancillary spending. For instance, the Grand Ole Opry's status as a country music icon drives tourism, creating a symbiotic relationship between entertainment and hospitality. This synergy was further solidified in 2022 when RHP partnered with Atairos and NBCUniversal, which acquired a 30% stake in Opry Entertainment Group (OEG) for $1.415 billion. The partnership values OEG at a premium while allowing RHP to retain 70% control, ensuring alignment with long-term strategic goals.

Strong Financial Performance and Dividend Growth

RHP's 2024 financial results underscore its operational strength. The company reported record consolidated revenue of $2.3 billion, with Adjusted EBITDAre growing 9.7% year-over-year to $757.7 million. Despite construction disruptions at key properties-such as a 320-basis-point drag on RevPAR growth-RHP maintained profitability, demonstrating the resilience of its business model.

Dividend growth has been equally impressive. In 2024, RHP paid a total of $4.45 per share in dividends, a 15.6% increase from 2023. For 2025, the company has declared a fourth-quarter dividend of $1.20 per share, to be paid on January 15, 2026. This follows a consistent pattern of quarterly payouts, including $1.15 per share in Q1 and Q2 2025. With a current yield of 4.89%, RHP ranks among the most attractive high-yield REITs, though analysts caution that its Dividend Sustainability Score (DSS) remains relatively low due to rising operational costs.

Expert Endorsement and Risk Mitigation

Barclays and Fitch Ratings have both expressed confidence in RHP's ability to sustain its dividend and earnings trajectory. Barclays initiated coverage with an Overweight rating in early 2026, citing RHP's strong credit profile and strategic capital allocation. Fitch's upgrade of the company's credit rating further validates its capacity to service debt and maintain dividend payments, even amid inflationary pressures.

To mitigate risks from construction projects, such as the multi-phase $131 million expansion at Gaylord Opryland, RHP is funding improvements through cash reserves and its revolving credit facility. These projects, including the addition of 108,000 square feet of premium meeting space, are expected to boost occupancy and average daily rates (ADR) in the long term. Additionally, RHP has diversified its revenue streams by acquiring the JW Marriott Phoenix Desert Ridge Resort & Spa and investing in Southern Entertainment, reducing exposure to group booking cycles.

Conclusion: A Compelling Case for Long-Term Investors

Ryman Hospitality Properties' hybrid model offers a rare combination of luxury hospitality and entertainment-driven demand, creating a resilient earnings base. While challenges such as construction disruptions and a low DSS exist, the company's proactive capital investments, strategic partnerships, and strong forward bookings position it to sustain dividend growth and outperform peers. For income-focused investors, RHP represents a high-yield opportunity with the potential for long-term stability in an evolving market.