Ryman Hospitality Properties Inc. (NYSE:RHP) (2.1%) (RHP – $82.24 – NYSE) is the owner/operator of four large convention-centric hotels under the Gaylord brand. It also owns the Opryland brand and entertainment complex in Nashville, the city of its origin. As such, it has benefited from the growth in country music and consumer preference for live entertainment. The company’s hotels are group-focused, and bookings have remained strong due to a steady economic expansion in the United States and limited supply growth within the group-focused hotel market segment. Future growth will come from new hotels (likely established as joint ventures) and investment into existing properties as well as development of live entertainment venues. The company, which is structured as a REIT (real estate investment trust), provides a tax efficient dividend stream underwritten by the consistency of its cash flow. In time, we expect management to unlock addition value by executing a tax-free spin-off of the entertainment business.
From Mario Gabelli (Trades, Portfolio)'s first-quarter 2019 Value 25 Fund shareholder letter.
