Ryman Hospitality’s Earnings Call: Mixed Sentiments and Future Prospects

Ryman Hospitality Properties ((RHP)) has held its Q3 earnings call. Read on for the main highlights of the call.

Ryman Hospitality Properties’ latest earnings call conveyed a mixed sentiment, with notable strengths in the hospitality segment and international expansion, but challenges in the entertainment segment due to increased competition in Nashville. Concerns were also raised about increased cancellations and the potential impact of the government shutdown. Despite these challenges, the company maintains a strong liquidity position and a promising group business pipeline.

Hospitality Segment Outperformance

The hospitality segment of Ryman Hospitality Properties demonstrated remarkable performance, with the same-store hospitality portfolio achieving a RevPAR and total RevPAR index of approximately 141% and 195% of fair share, respectively, relative to Marriott’s competitive set. This strong performance underscores the company’s effective strategies in the hospitality sector.

Successful International Expansion

Ryman’s international expansion efforts have been successful, highlighted by the Opry’s first-ever international performance at the Royal Albert Hall in London. This event garnered over 1.2 billion media impressions, showcasing the brand’s global appeal and potential for future international endeavors.

Strong Group Business Pipeline

The company’s group business pipeline shows promise, with same-store group rooms revenue for 2026 pacing approximately 8% ahead. Additionally, ADR growth continues to pace in the mid-single digits, indicating a robust future for group bookings.

Strong Liquidity Position

Ryman ended the third quarter with $483 million of unrestricted cash and total available liquidity of nearly $1.3 billion. This strong liquidity position provides the company with the financial flexibility to navigate current challenges and pursue growth opportunities.

Entertainment Segment Challenges

The entertainment segment faced challenges, particularly in Nashville, where softer volumes were observed due to the local live entertainment industry absorbing new supply. This has impacted the segment’s overall performance, necessitating strategic adjustments.

Increased Cancellation Activity

The company reported elevated cancellation activity, primarily from the government sector, alongside some impact from corporate layoffs. This trend poses a concern for future bookings and revenue stability.

Impact of Government Shutdown

The ongoing government shutdown presents potential negative effects on group bookings, especially in the government and related sectors. This situation requires close monitoring as it could influence future financial outcomes.

Forward-Looking Guidance

Ryman Hospitality Properties reported results in line with expectations for the third quarter of 2025, with a RevPAR index of approximately 141% and a total RevPAR index of 195%. Despite a decline in corporate group room nights, the hotel segment saw a stronger-than-expected corporate group pickup. The company anticipates a robust group pace for 2026 and 2027, with group room revenue on the books up 8% and 7%, respectively. The entertainment business generated third-quarter revenue of approximately $92 million, with an anticipated full-year adjusted EBITDAre of $112 million.

In conclusion, Ryman Hospitality Properties’ earnings call highlighted a strong performance in the hospitality segment and successful international ventures, despite facing challenges in the entertainment sector and increased cancellations. The company’s strong liquidity position and promising group business pipeline provide a solid foundation for future growth, even as it navigates potential impacts from the government shutdown.