Ryman Hospitality Properties (RHP) 23 Feb 242023 Q4 Earnings call transcript

Welcome to Ryman Hospitality Properties Fourth Quarter 2023 Earnings Conference Call. Hosting the call today from Ryman Hospitality Properties are Mr. Colin Reed, Executive Chairman; Mr. Mark Fioravanti, President and Chief Executive Officer; Ms. Jennifer Hutcheson, Chief Financial Officer; Mr. Officer; Operating Chief Chaffin, and Mr. Patrick Chief Moore, Executive Officer Group. Entertainment Opry of Patrick participants on been this have At time, placed listen-only mode. It the floor pleasure to Ms. my is over now to turn Jennifer Hutchison. may you begin. Ma'am,

statements. This deemed are affected defined in we performance. forward-looking be believes listed Private you fact joining project today. thank expects including and factors, of Reform results be Any actual not filings such make Words or company's the may statements, those The historical contain company's SEC results are statements as may morning, as the us statements about Securities these we identify Good the differ today. and discuss statements which intended statements release. of from in forward-looking call to in including by Act or to the for that company's XXXX, may Litigation today's today be may financial expected many materially

statements, will of forward-looking We a future reason. update information, or result new not any other any whether as events

We We Colin. to reconcile call exhibit now to will the today's GAAP comparable release. each measures in to measure turn today. financial most directly measure I the over non-GAAP will discuss non-GAAP also the

year a Thank very good We've morning, to the you, Jen, everyone. here. busy and had start

Red on So weekend Ole visit stage impromptu Bowl In in start some results, Super Las mid-January, very performance I on to early a off strong and developments. start. anticipated thought Vegas by I'd of Gwen. including we newest and those our today call much opened encouraging generated our Blake an a

hot and here positive, brand At of with and fans at in look name response hosted country celebration from some our forward reopening that points minute, been results, in month, last extremely also earnings Combs to of where Both outlook stages host will beyond. of Mark we're music new and the from will to we and has Luke our Category venue look partnership Luke and 'XX revisit Jen The the the be community opening into end to many thought April, think Nashville, our help a a more about and so Investor we XX. the we how grand announced the frame continue Day in Investor year. of I'd I the quarter in will we operations get but Our there, years official salient we ramp later the this and you excited ticket. our this very we why fourth to as Day forward 'XX discussion our

high to customer levels our drive new robust, peak service prior new and our group years, surpassed continues on For and especially rotation constraints development. a unique a to customer and very limited and industry-leading of the ground-up XX built delivers and management group customer with long-term customer. focus our that serve to hotels team has enhance model backdrop that strategy the retention, loyalty. against has portfolio We've structural satisfaction under executed continue construction to supply of Furthermore, on built an employee-centric particular model demand is

that the in cetera. complexes, in great speak into drive sustain business to we country returns. released shareholder Comb some retention projects turn, music high formula demand awfully relationships the investment and company. thus events, at Day, at demand. the high-return recent as has industry-leading further been the our lead to growing byproduct some ample our superior brands built overall customers, the popularity convention space, think return and efficient to entertainment industry. of exciting years growth of This, growth way will This out team meaningful restaurants, hotels, our lifestyle iconic generate singles Beyonce's reoccurring allows being This Grammy strong incredibly on Tracy have pool in in our an and drives valuable category. our et product themselves. loyalty that the our to And the power with we we're an for such stimulating returns as is hotel performance visibility rooms, us very built most expand we've And explained in Awards existing investments our the Through to and of new at top building on our stream, the with On continue Investor great As shareholder a Chapman result, have revenue significant very opportunities I Luke that, that future, trajectory. country pricing recently all highlight detail a the of for music building

incredible a those returns He's an to thrilled to up friend to generated as the going and Fast particular our image. the market I was cleans businesses we that the of proud for you stage be Ole to be exceptional who Grammys hosted fortunate be sector-leading with. of we For the case shareholders, on see a Luke previewing dinner based as hope, at Car. hope its Day city plus that hope forward. on city performance said business I've wides think Grand are particular not hope I Investor before, we in many someone Both of this our are get artist times is have that this you business and return our will the Opry. of continue were and up to to

with XXXX driving want outlook it turn quarter in more things our and extensive results and we loyalty. delivering and Mark Our fourth of the and And strategy knowledge control, detail. grounded to to can review me over our our let customers is know in thus that, well what customers

morning, Good everyone. Thanks, Colin.

in fourth quarter results record preliminary Our the with were in results line we mid-January. reported

driven generated up increased to few In year. record strength XX.X%, performance today's portfolio financial compared led quarter. fourth hospitality a Gaylord Banquet segment, strong particularly per contribution a room metrics monthly for of monthly the achieving highlight group higher results attracting our Gaylord record revenue I'll same-store with our record So the the $XXX, for in of banquet revenue revenue of group key October continued setting achieved night, with evidence success quarter, Palms drove Palms brand by primarily that National last the property. for call, banquet a in simply the national higher-quality groups. ADR by our the the and X% and

The and last of programming monthly the for monthly quarterly same-store the in an brand an brand full year. induce In higher the holiday levels, for resulted revenue Early last initial Our admissions our proprietary total watermark revenue the for set above high all-time banqueting slide leisure Country strong during holiday per record quarter, to while there period encouraging, results caps device RevPAR. I December, Texan. quarter. programming Hill year's total success year's ICE Gaylord programming from set yielded Opryland were the fourth record continued just of holiday programming look for mentioned, seasonally Texan this Gaylord record our results the low activating groups. total equalled demand at all-time revenues we results Gaylord combined Opryland at and and with JW record in to Furthermore, of the month with Gaylord strength particularly initiatives, fourth forward

the group Finally, group as quarter calendars in show At we translating revenue as music in the margin last and the to ADR EBITDAre pricing XXX well evident provide. higher strong rooms of fourth our on the to by country and grew entertainment pace. X.X% the continue like power, of the command for XXXX, revenue fourth both experiences strong beginning see the points compared group period remained compared basis the caps across we booking and January into the through segment pace. continue Demand is to pacing year. portfolio, time live T+X same year revenue up the for XXXX last in driven X% and growth for This drive meeting trends demand on quarter, books continues underscores we for grew per In entertainment adjusted in our quality meeting to XX.X%, expansion to business. have

the we supports momentum repositioning including at together, the of rooms in this invest Gaylord have our Opryland And we seeing presentation, segments are million group and transformation continue invest pull of both summer, we and projects, Investor governors confidence underway and in Gaylord to Day ballrooms expected In pre-function Gaylord into already Grand opportunities to ample Lodge and the pavilion high-return $XXX approximately Rockies, in Taken laid to $XXX to our XXXX, and the at assets. phases the for out presidential renovation business our lobby we're expect Palms. beginning as X,XXX a capital new projects. remaining our the and which major million several in hospitality at our to the business of in spaces to open

Country a in Gaylord at space and renovation expect in business Vegas, look a a JW of we sports Las year. at of downtown redevelopment you to to at meeting In Gaylord enhancements we're W-Austin XX the Ole able Wildhorse Additionally, the into veto these our the We in the in give Entertainment and of million the bar new expansion and designing expansion, projects already to on the Texan. Block and Nashville. other underway, spend including million X rooms later Gaylord the analysing being Hill details rollouts Rockies, rooms the more a a Opryland forward to SoundWaves Hotel major $XX approximately XXXX, on Red $XX at Category Saloon opening and renovation

our to outlook turning Now XXXX. for

same-store $XX hospitality to RevPAR ranges $XXX guidance million, our from from and Hospitality RevPAR at same-store entertainment to reflects and capital X.XX% of to of of $X million consolidated million X.X%, X.X% we Same-store year the million projects. we expect disruption including full XXX which approximately $XX Below reflects of portfolio operations, the million, line, diluted XXXX million reiterating AFFO the growth points of X.XX%, growth or the per basis adjusted disruption $XX $X.XX. are within share of of to to XXX disruption $XXX million adjusted to Day, $XXX.X EBITDAre presented AFFO, which $XXX.X points generate to approximately million business. $X.XX Investor We funds of of disruption basis reflects to total hospitality within which

play March what quarterly April quarter the RevPAR RevPAR which how will XX the hospitality largely some on quarter, business group expect decline Easter, single and into saw we be shifting line Let our digits in in different out to color same-store second. to me to first year, out, a provide XXXX, with this on this total we compared cadence year, expect of which last than trends. the we first bit falls X but In year low little to of the historical due and last primarily timing compared to

EBITDAre normalization Easter XXX and cancellation attrition shift adjusted to and margin hospitality of fees. XXX in quarter to continued the points primarily basis year-over-year same-store first expect due to We the decline the

record. first quarter reminder, adjusted first the and quarter EBITDAre a on highest was As the of margin EBITDAre adjusted XXXX

quarter. X RevPAR remaining quarters, the quarters RevPAR growth In winter entertainment low the Consistent January. and fourth first we expansion the our and in RevPAR margin adjusted with to experienced to growth revenue tempered expect same-store quarters. trends, expect high show total We growth EBITDAre the by to total growth growth mid-single-digit the modestly positive in business, be second weather in by fourth in historical with we we the third RevPAR strongest Nashville single-digit in and severe and quarter followed second and expect

quarter impacted will disruption. be third The construction by heavily

are Colin at we outset, incredibly discussed As well the positioned.

visibility We future have into significant bookings.

These our from can cash this balance long-term to generation. that sheet stream, turn sustain strong to our dividend disruptive pricing and And a And we high-return ample that it our fund though dividend. growth power over sheet, to plus I'll and investment free We flow discuss cash we're revenue growth Jennifer our importantly, balance end, flow will free liquidity, making, opportunities. trajectory. recurring XXXX have and in meaningful investments

a $X We revolving million Mark. the million unrestricted facility cash $XXX million had hand, credit credit ended on facility of undrawn. our OEG's revolving outstanding. with Thanks, million year remained of $XXX and $XX balance

other cash together, was total net for of million We approximately and liquidity retained approximately letters of $X.X of available of projects. FF&E maintenance our available Taken an restricted credit. $XX outstanding $XXX million billion, additional

flow JW pro X.Xx. full year below where net range to ratio basis, net leverage assuming On generate free of leverage cash X.Xx, of ended ratio net and Country, before the EBITDAre of total At outlined. to was a in unrestricted Hill of payment funds $XXX low our liquidity year the to investment which, billion our to expenditures expect on fund our X.Xx. the to we and capital balance end million, dividends our based forma and sufficient a at EBITDAre XXXX XXXX, above from we adjusted X and at between debt In million consolidated our target Our to of net contribution end capital the will was accounts range. be targeted our year-end cash of available priorities with our remain $XXX ratio Mark within leverage dividend $XXX than expect FF&E available the million in the adjusted total escrow of remain that more and well $X XXXX, we to together

our and demonstrate excellent continue our As the position to sheet of projections us liquidity be our businesses. deployment support shape the and balance to to opportunities growth available capital continued in

for are to we pleased the $X.XX XXX% continue through retax shareholders up that, dividends. XXXX. questions. our our pay to dividend Finally, first we of of announce can of intention income With March It record to to declaration of of payable remains as it quarter our XX, open able

Bank. we'll Instructions] Chris question take from Deutsche with And our first [Operator today Woronka

year. great really another on Congratulations

whether group of to whether that throughout groups whether bring continuing and out-of-room every on almost still you spend. of that quarter, you're up spend. room curious guys of you things was you're I'm in One new tenants things performing to saw the excess XXXX the to on you're contract negotiating course as the of also and seeing all like those both the out contracts minimums mentioned able

far encouraging. of from it's the little trends this we're a Like in business, from how good bit To a just so morning. question, group had be January. Nashville quarter. we setback your to you the to Patrick overall, the Chris, the hear entertainment in first But weather continue pacing Chaffin in

encouraged and we've are a beverage more performance the see anticipated. we seen. showing we'll up I don't they last for and lot year. We we signing But thus than room food quite are that are had seeing by outside know that originally the that groups outsized what saw up far,

across how as in And we've a and trying sure into beverage has pressures say we contracting gone far higher feeling forward, get priced move inflationary would beverage our to sure thus the and always But to all that folks we're real making and change been material the industry that the As contracting that continue I how no been we going is pricing are minimum. food appropriate to time. forward food there's far. make in

a follow-up. And helpful. just Super Okay. then quick

projects given the expected Investor on How at horizon. on a about thinking or also it it's or market? mentioned just You performance those capital the at ROI prioritizing are Day, based lot of a property whether you an

ROI customer feedback only Chris, meeting the we're but in one that way The is, feedback is these, managing we've other important that to projects. the et research, at the looking is some we timing then to also that at what's not terms through various customer scores the determined time based we receive. on room when the And planner is those of on look of satisfaction cetera, renovations, based disruption construction as and primary attendee, the in undertake gotten the also, hotels, best ultimately, is

Our will next Fargo. question with Dori from Wells come Kesten

expect this years, over to Given you would earnings? the year the few most disruptive the to renovations next of phasing be

X various We've X you'll same the the have rotate the if disruption next mean look X got next I through renovations. the probably you guess, we years, of room think, years. for or level, at about I X with portfolio as the slated, I

I think year next the dollar So about and guess would I the this most it amount amount. that of the have would same disruption, year, or

can into part empty, it's price business. to online, we enormous mean is these building projects as of 'XX 'XX hotel to in you I I to good it's half add look our pay and showing But of come that me this for your very, the have growth but we're just superior suspect And half very Let some business. the in full this. start growth. at see of disruption, demand we'll all part of

just We business over ability and have that. we this materially, picket-decade. And do to disruption grow we'll our manage have the we'll last like

year tail in so tell would take value sure that midst construction dog that you in the will to see not the is massage on to of when schedule for this we're make even even we advantage we start and that weeks. and wagging creation renovation Palms design the that manage opportunities demand that that process the disruption. first, is a I We're continuing which high putting that few slated of, this the renovation, a to X,XXX-room

already things There's I Patrick, going business decade. last Yes. over book manage disruption to on But going we at because know is exciting times with how contracted thing few we business underlying years. And the at see basically over like projects. many this that for the the many, we growth hotel to and And be real will going books to when we'll run these T+X, is and like way its this to bookings, we've year have lead of around that this. But happen that. do we're the the full doing the look be good we're business very volumes, feel next is this T+X

Just point. one other

will side, the this year. that be completed On projects the the are year creating this entertainment disruption

year that So we any shouldn't in have next business.

Right. you construction. able you've assets City Austin results? said still walk I through, Limits, from there what And probably I And to have on to then Nashville drive guess, best been practices can your maybe should

Austin pushing in that were the deploy we City when there's Investor outlined bottom across of of number program sort and Limits, value creation venues. top the Day, So a you sort all that of the both our And look we of at factors line.

food of is we beverage the frontline and are outsourced. in-house we some staff over example, that brought taking For

and We pricing dynamic of relative are driving improving and pricing. demand to sort overall count show

We assets things from Austin. block of some and at like routing booking are into looking Nashville-based the

between and at some to events Limits a first, And is, ones areas City were private to hotel across we and we're at the say that Austin events other I are the other launch of of second the a factors ACL. we business thing of we driving tour that areas So the is, other year. mention Two redeveloping there's this range number would in the like a have assets, expect show. I'd of have before driving that end

you keep that if drivers, growth from you, Or to over can there internal about is years of of and I the OEG Patrick, few Okay. And just talked expect you would projects come what ongoing? the your growth next are external majority growth then at likelihood there? a just

Vegas, online, is And X to Category putting improvements in upgrade major the as significant going that we're to is existing the looking growth the would because both W capital limits. answer opportunities. brands obviously, that and short so organic into Colin growth the City of the at for we're said, a we're we XX, our much say to predominantly investment other property. which service. Austin Austin projects That We're being of unit outlined, Hotel be, looking I putting and always have things

conversations on grow in Yes. assets, with existing the we but down other after, and again, many about good business to multiple I those growth we're things to a think business next the this that it. very today. on avenues embedded And have yesterday should at opportunities are looking continue just year that based business. Board, We today interesting very new we're see to our different talked Patrick, year focusing what doing not we our go It's with on here into

with James. from Raymond Crow question next will Our come William

a of that slower lot from calls. National. could the address is talking Mark, the ramp perspective, wondering don't the we rest momentum relative wondering time to spend that how to just you doing It portfolio? asset on a about I'm of if asset pandemic. post I been And was these

and pre-pandemic, rest to markets the portfolio, to as Bill, National relative other And we recovered beverage groups, slower the team not there dividends market. really in. itself and at group you made both investments we're and never food food you're That been done has what's how how The quickly that a the performing penetration, of has hotel market of that, renovations ramp. performed us. has say, But D.C. participating is satisfaction and they're as scores. that the food the would and performed the terrific I terms beverage it the in revenues, has pandemic during and to better. with beverage Whether paid when driving customer it compare that margins, really have for looking job

better hotel the where going. drive we're So that perform. very but recovers, happy with working it's we're well that and always positioned National results, as And to market pretty is to is where

that we've other thing that of encouraging. I've been national, with talk that pace very last it's XX The Patrick, may want you to just over noticed is the the the seen this months, about bookings

hotel years future in very have this terms very hotel. of at lead that a in bookings and We XXXX volumes good are for attractive

the we've mean bit Mark the growth fronts everything to seen Yes, both point. Mark agree Colin's we hotel, tremendous with and I a market I and Colin to would agree. while on respond, all is slower

with told was done So sister its everything the on start that par one for things its of ago maybe an the of And we we of getting think we've that been that needed allows to and the I property us long about lagging behind a properties, to that that hotel has now. growth things and point term. few hotel had reached properties, job sister talking that the outstanding years fix some

getting do stimulate Day, ship National and prioritizing have conversations additional because we we're Gaylord our at the Investor sister done a of around really investment job the righted hotels. competitive we at growth hotels, as with about Texas then more Opryland, great what much starting they've and we with Rockies do so And to talked are to such

food and all repositioning, that. said put few into thinking consequence $XXX million Through been to his our And our some that as your we encouraged in trends question, refurbishment best it's we're is $XXX almost of And When I'm seen by in million. the this to hotel unlike internally of the year, last comment beverage Mark that cohort I market, about we of have all leverage we you repositioning. the think and to and going invested the of this the booking this competitors for and probably hotel those rooms accomplish in Patrick, personally a over think I've And year months. we've very number had. ever Bill,

That's about the part exactly W, went follow-up, if the originally sale? Investor remember there talked next less you was at for. know when Austin, change addressed was was Tetris And selling could just the this it's I closure convention do what least sale into make great deal. at or and not. now color I the I I If looking Day for does the a center Or for outlook can't the of a likely, of the that does handful of But years?

I think us renovation and renovation the hotel a a And that to brand venue. the is to want encumbered And it's don't synergies that the an real to there. way not an and decision. is and from we do is It the closure is how for it that opportunity create drive relationships can generally, monetize by Block think management asset that if we center asset. between convention XX And would the entertainment the what or perspective terrific undertaking We that that sale. will the have choose in future. business complex? on influence It were about we that question and are the full we operate we

to opportunity want product that luxury be there in is So for hotel repositioned a to creation, value build someone terms there. if an of

the we see point the and of about. what which with get We through consequences that to repo this that, So don't we we we're Bill, at to have do excited want that want know optionality, asset. I think

We'll Jay hear with Securities. Kornreich from Wedbush

rate in into expect prior room the It for-the-year curious it now future looks of segment at like like you And also XXXX? represents? in year percent typically your the kind us think just what year. in over your of I'm fourth do as AADR, what XXXX, that above we quarter remind year was bookings the maybe the about came fourth X.X% booking in bookings increases total

group for-the-year. from start year XX between let's are the couple occupancy a the typically XX% we questions of book in about on So of points somewhere We books with perspective, entered there. and XX% year there a to the

from consistent We expect me about From question, that, with RevPAR our about be this X/X growth that it of and year. from about RevPAR the that of group look coming answers way coming rate ADR this let RevPAR growth about assumes at our occupancy your XX% assumes if down we is if break from XXXX and and total that will perspective, growth. provided, of X/X ADR for is of guidance our growth is X/X a And see coming you alone. it this in

a year of these So that bookings. we further great and some in with will believe we we've that entered with position even for-the-year the position,

groups and with are to Our sales team enhancing with a an rate raising justifies where pleased putting group the not we're proposition And is we're are investments positive pricing, increasing further pushing way hotels. is doing in the outstanding of we but job that. and that into responding group heading. very very, that just that rate It we are the value

one That's very a helpful. And as then follow-up. just

fourth this Country quarter. fully referenced Marriott JW later the overlaying You ICE year Hill the on the program in

contribution that can can And provide? you any believe so I'm just the wondering to as context EBITDA give upside if you

So see It with very to build market for enter the a the customer a base, X takes ICE it into you years. if first time. to when while we takes will. little X We

MSAs fact our analysis performer and to the indicates us this that given for strong a X hours markets be that only is us. However, about the the Dallas of away, could

in between million this say and to so $X and would property believe the year, than that we'll I little somewhere from profitability And million first goes. $X better we see there's opportunity But we in see. what it normally a revenue bit would at how of maybe putting ICE

Smedes from will Rose question next come Citi. Our with

back year. you the the I cadence of growth of just the on kind of wanted talked course to RevPAR circle over about

of that seasonality earnings? being of think year weakest So that kind thinking quarter with quarter third the in the followed we fourth of the first the the the X way about maybe second quarter and are to Is be by just right right last the will your quarters.

Smedes. that's Yes, correct,

that got right. You

you the And you is groups. ascribe And relatively to out Is you wondering, question the coming. of learn of pinpoint kind It just and have talked figure Okay. what capital make your you guess projects kind you a this, that have groups the a to the that to much And I'm it's the a open like kind were to fair what new need this kind you in to is work go then amount of and it's property. then doing put and I maybe of seems at was fair wondering something property do live new kind in then I particularly got need just misunderstand and you're more there in Rockies. of the of accommodated market just and the year this about you to would or are when that misunderstood still do differently? it relatively everything to? that CapEx Or also

minority not And doing Yes. partners in the of after really, the in revenue into the and that hotel estate we is partner we're misunderstanding that out It's which our we're converting groups. we mind is and Lodge, the Grand servicing Rockies in that what opening. that bought areas taking that Keep essentially then a are a were period that footage from space generate the real with is and theming through groups. that converting square sellable that Rockies not can are revenue-producing that it best by construction

more to it allow profitability, us drive So service groups. will

of the there original versus expansion built. was that space, which the meeting seeing demand Pavilion is we're speaks Grand that product really an So to

we that the misunderstood not it's So market.

to the more is built issue the the I of hotel footage sellable of maximize how that asset. an design think it and profitability they was how use and really square

mind I this. add if to you Do

to understand is not vast had that investors our we opened books, convention Colorado, hotel as were Colorado prior resort group the in to into state time. that million that really that to hotel, nights When a of had we been arriving material in we room before. never thing X at the minority hotel, other need there another Mark when this over the the State said, of well partner on majority this we this was room The state. drove nights open And any which

we this consumer. we've next by once potential size-wise generate and hotel that because planner Opryland do competitively And with asset that here. deploying capital this So why a it's sure attractive potentially have that to market that been to have we're And is what discovered is fully that this make looking the here. what high superior, really to desire looking And And exciting what group completed-- We're the location. trying help at that this in XXX time that a and extraordinary to that hotel, here. is group this returns in this XXX market little it's is discovered asset to a frequent and bit so is what so benefits is terms of we're doing the have adding on rooms this we way, very SoundWaves an the create a looks to at like of we over is of hotel very appetite airport we're tax with very good capital. meeting

any be of we meet we the understand the will I into members there are it's don't them. happy when think, that, what that Mark, folks, people help repositioning our that doing Jennifer, believe we're that that completed. something we're understand quite But to community extraordinary is if hotel investment this So

over any today's additional the will our That closing remarks. session. question-and-answer or will now I presenters conclude turn call to for

weeks morning, this a back on call days it's this but done we earnings of the We've meetings ago. investor had just of X.X several

you over keep to And So just last questions, the this we're IR months. on said folks our if month thank repeating think we've be everyone over the I we couple forward being to call our if have additional all talking, morning. any the that everything team conferences participating will in to free the or next look And we Jennifer out Mark. to of feel that or reach please for

thank So everyone. you,

Thank today's participation. This call. does for conference conclude your you

You may disconnect. now