NASHVILLE, Tenn., Aug. 03, 2023 (GLOBE NEWSWIRE) -- Ryman Hospitality Properties, Inc. (: RHP), a lodging real estate investment trust (“REIT”) specializing in group-oriented, destination hotel assets in urban and resort markets, today reported financial results for the three months ended June 30, 2023.
Second Quarter 2023 Highlights and Recent Developments:
- The Company generated consolidated net income of $70.1 million and a quarterly record consolidated Adjusted EBITDAre of $174.7 million.
- Hospitality segment achieved second quarter record revenue of $417.7 million, driven by second quarter record average daily rate (ADR), resulting in a quarterly record operating income and the second-best Adjusted EBITDAre performance of any quarter in the segment’s history.
- During the quarter, the Company booked over 650,000 gross advanced group room nights for all future years, at a record ADR of $265, an increase of 8.9% over Q2 2022 ADR for future bookings.
- Opry Entertainment Group (OEG), our Entertainment segment, set record quarterly revenue, operating income and Adjusted EBITDAre as OEG continues to experience strong demand.
- Completed the acquisition of JW Marriott San Antonio Hill Country Resort & Spa (“JW Marriott Hill Country”) on June 30, 2023, adding a premier, group-oriented resort to Ryman’s hospitality portfolio, attesting to Ryman’s growth-oriented business strategy.
- Patrick Moore was appointed Chief Executive Officer of OEG, responsible for overseeing OEG’s growth plan, day-to-day operations, and business development activities.
- The Company is revising its consolidated Full Year 2023 outlook to include the acquisition of JW Marriott Hill Country.
Mark Fioravanti, President and Chief Executive Officer of Ryman Hospitality Properties, said, “We are pleased with our financial results this quarter. Continued strong group demand produced record second-quarter revenue and ADR performance for our Gaylord Hotels portfolio. The demand for our live entertainment assets continued to grow as well, as our Entertainment segment delivered record quarterly revenue, operating income and Adjusted EBITDAre. We were especially pleased to see the continued momentum in our business given the industry-wide softening in domestic leisure travel.
In addition to these record results, we added to our healthy forward book of business as lead volumes, bookings and rate continued to grow. Given the strength we see in the group segment in the years ahead, we were pleased to announce our acquisition of the JW Marriott Hill Country. This beautiful resort complements our existing portfolio and provides an additional destination for our group and leisure customers. We are already hard at work exploring organic growth opportunities and synergies within our portfolio to better serve both group and leisure customers in the years ahead.”
Second Quarter 2023 Results (as compared to Second Quarter 2022):
| ($ in thousands, except per share amounts) | Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||||||
| Total Revenue | $504,843 | $470,204 | 7.4% | $996,562 | $769,339 | 29.5% | |||||||||||
| Operating income | $122,240 | $105,968 | 15.4% | $227,890 | $113,842 | 100.2% | |||||||||||
| Operating income margin | 24.2% | 22.5% | 1.7pt | 22.9% | 14.8% | 8.1pt | |||||||||||
| Net income | $70,143 | $50,924 | 37.7% | $131,137 | $26,127 | 401.9% | |||||||||||
| Net income margin | 13.9% | 10.8% | 3.1pt | 13.2% | 3.4% | 9.8pt | |||||||||||
| Net income available to common stockholders | $66,543 | $50,284 | 32.3% | $127,863 | $25,663 | 398.2% | |||||||||||
| Net income available to common stockholders margin | 13.2% | 10.7% | 2.5pt | 12.8% | 3.3% | 9.5pt | |||||||||||
| Net income available to common stockholders per diluted share | $1.15 | $0.91 | 26.4% | $2.17 | $0.46 | 371.7% | |||||||||||
| Adjusted EBITDAre | $174,702 | $167,625 | 4.2% | $332,377 | $236,619 | 40.5% | |||||||||||
| Adjusted EBITDAre margin | 34.6% | 35.6% | -1.0pt | 33.4% | 30.8% | 2.6pt | |||||||||||
| Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture | $165,883 | $166,494 | -0.4% | $319,262 | $235,488 | 35.6% | |||||||||||
| Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin | 32.9% | 35.4% | -2.5pt | 32.0% | 30.6% | 1.4pt | |||||||||||
| Funds From Operations (FFO) available to common stockholders and unit holders | $113,639 | $107,119 | 6.1% | $222,165 | $138,341 | 60.6% | |||||||||||
| FFO available to common stockholders and unit holders per diluted share/unit | $1.92 | $1.91 | 0.5% | $3.72 | $2.48 | 50.0% | |||||||||||
| Adjusted FFO available to common stockholders and unit holders | $122,392 | $114,875 | 6.5% | $235,985 | $149,689 | 57.7% | |||||||||||
| Adjusted FFO available to common stockholders and unit holders per diluted share/unit | $2.06 | $2.05 | 0.5% | $3.95 | $2.69 | 46.8% | |||||||||||
Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income/(Loss) and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders and unit holders to Net Income/(Loss), see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.
Hospitality Segment
| ($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2023 | 2022 | % ∆ | 2023 | 2022 | % ∆ | ||||||||
| Hospitality Revenue | $417,685 | $401,802 | 4.0% | $842,124 | $662,913 | 27.0% | |||||||
| Hospitality operating income | $107,733 | $100,573 | 7.1% | $213,803 | $116,241 | 83.9% | |||||||
| Hospitality operating income margin | 25.8% | 25.0% | 0.8pt | 25.4% | 17.5% | 7.9pt | |||||||
| Hospitality Adjusted EBITDAre | $152,667 | $154,983 | -1.5% | $303,902 | $225,315 | 34.9% | |||||||
| Hospitality Adjusted EBITDAre margin | 36.6% | 38.6% | -2.0pt | 36.1% | 34.0% | 2.1pt | |||||||
| Hospitality Performance Metrics | |||||||||||||
| Occupancy | 72.7% | 72.7% | 0.0pt | 72.5% | 60.1% | 12.4pt | |||||||
| Average Daily Rate (ADR) | $244.77 | $234.50 | 4.4% | $241.38 | $232.41 | 3.9% | |||||||
| RevPAR | $177.83 | $170.46 | 4.3% | $174.97 | $139.61 | 25.3% | |||||||
| Total RevPAR | $440.12 | $424.07 | 3.8% | $446.49 | $351.76 | 26.9% | |||||||
| Gross Definite Rooms Nights Booked | 651,507 | 601,180 | 8.4% | 1,000,155 | 1,023,225 | -2.3% | |||||||
| Net Definite Rooms Nights Booked | 450,269 | 413,042 | 9.0% | 700,587 | 578,710 | 21.1% | |||||||
| Group Attrition (as % of contracted block) | 16.3% | 18.2% | -1.9pt | 15.9% | 23.9% | -8.0pt | |||||||
| Cancellation Room Nights ITYFTY (1) | 21,748 | 11,647 | 86.7% | 53,968 | 182,066 | -70.4% | |||||||
| (1) "ITYFTY" represents In The Year For The Year. | |||||||||||||
Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Total RevPAR, and Occupancy” below. Property-level results and operating metrics for second quarter 2023 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income/(Loss), and property-level Adjusted EBITDAre to property-level Operating Income/(Loss) for each of the hotel properties.
Second Quarter 2023 Hospitality Segment Highlights
- Achieved second quarter record revenue of $417.7 million, driven by second quarter record ADR of almost $245, an increase of 4.4% from Q2 2022.
- Actualized room nights in the second quarter were strong, as 528,000 group room nights traveled, a 3.6% increase over Q2 2022.
- Q2 2023 Hotel occupancy was 72.7%, flat to the prior year quarter.
- As expected, Adjusted EBITDAre and Adjusted EBITDAre margin were impacted by the continued return to normalized attrition and cancellation fees and management fees.
- Attrition and cancellation fee collections declined to $10.3 million, as compared to the $15.4 million collected in Q2 2022, and incentive management fees earned by Marriott increased to $7.0 million in the quarter, up from $3.0 million in Q2 2022.
- Room night production remained strong as ADR for new definite future bookings was an all-time record.
| Gaylord Opryland | |||||||||||||
| ($ in thousands, except ADR, RevPAR, and Total RevPAR) | |||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||
| June 30, | June 30, | ||||||||||||
| 2023 | 2022 | % ∆ | 2023 | ||||||||||
