Ryman Hospitality's Q4 2024: Navigating Contradictions in Group Bookings and Transient Demand Trends

These are the key contradictions discussed in Ryman Hospitality Properties' latest 2024Q4 earnings call, specifically including: Disruption in 2025 and Group Bookings, Group Booking Trends and Transient Softness, and Transient Demand Trends and Group Business Performance:



Revenue and Earnings Performance:
- Ryman Hospitality Properties reported consolidated revenues increased 2% year-on-year for the fourth quarter, with consolidated adjusted EBITDAre up 1%.
- The results were below expectations due to a decline in leisure demand, particularly during the holiday period in December, and a slower-than-expected recovery from COVID-19 impacts.
- The decline in leisure demand was attributed to consumer price sensitivity, normalization of post-COVID demand, and macroeconomic uncertainty.

Group Bookings and Strategy:
- The company booked a record 1.3 million same-store growth group room nights for all future years, surpassing the prior year record by approximately 5%.
- This reflects a strategic focus on transforming hotel assets to capture more of the premium group customer base, with investments in Gaylord Opryland and Gaylord Rockies to attract high-rated group business.
- The strategy is aimed at inducing higher outside-the-room spending and expanding food and beverage capacity to drive more premium group demand.

Construction Disruption and Capital Investment:
- Ryman Hospitality Plans to invest approximately $400 million to $500 million in capital in 2025, primarily to renovate Gaylord Opryland and Gaylord Texan.
- The company anticipates construction disruption, which is estimated to impact RevPAR and total RevPAR, with a 250 to 350 basis point impact on adjusted EBITDAre.
- Disruption is primarily due to major renovation projects, including the expansion of meeting spaces at Gaylord Opryland, which will continue into 2027.

Entertainment Segment Growth:
- Opry Entertainment Group reported record revenues of $98 million in the fourth quarter, an increase of approximately 12% year-on-year.
- Growth was driven by strong performance at Ole Red Las Vegas and the completion of renovations and new offerings like Category 10 and the W Austin Hotel.
- The investment in Southern Entertainment is expected to provide a scalable platform for live music experiences, enhancing Ryman's entertainment offerings.