Ryman Hospitality Properties ((RHP)) has held its Q1 earnings call. Read on for the main highlights of the call.
Ryman Hospitality Properties’ recent earnings call showcased a strong performance in the first quarter, marked by record revenue and growth across various segments. Despite this positive momentum, the company acknowledged challenges posed by economic uncertainty and a potential pullback in government business. Effective cost management and robust forward bookings were highlighted as key strengths, although the company remains cautious about near-term volatility.
Record First Quarter Revenue and Growth
The first quarter was a remarkable period for Ryman Hospitality Properties, with consolidated revenue rising by 11% year-over-year. The company also reported a 15% increase in adjusted EBITDAre and a 28% rise in AFFO per share. The hospitality segment achieved record revenue, with RevPAR and total RevPAR growing by 10% and 9%, respectively.
Entertainment Segment Performance
The entertainment segment delivered an impressive performance, with revenue increasing by 34% year-over-year and adjusted EBITDAre up by 35%. These figures set new records for the first quarter, highlighting the segment’s robust growth.
Strong Forward Bookings
Ryman Hospitality Properties reported a 10% year-over-year increase in gross group room nights booked for future years. Notably, bookings for 2026 and 2027 surged by 13% and 35%, respectively, indicating strong future demand.
Proactive Cost Management
The company implemented profit improvement plans worth $28-$30 million to manage its cost structure effectively. This initiative led to an improved wage margin by 40 basis points, underscoring Ryman’s commitment to maintaining financial discipline.
Economic Uncertainty Impact
The earnings call highlighted concerns over economic uncertainty, particularly due to the federal government’s trade rebalancing efforts. This has created hesitancy among businesses regarding near-term meetings, affecting in-the-year, for-the-year bookings.
Government Business Pullback
Ryman anticipates a pullback in government-related business, which is expected to impact the low end of prior guidance and affect group business volumes.
Potential Cancellations and Attrition
The company noted increased attrition and a modest pullback in demand for in-the-year bookings. This prompted a revision in guidance for hospitality RevPAR and total RevPAR growth.
Forward-Looking Guidance
Ryman Hospitality Properties provided guidance reflecting cautious optimism amid uncertain economic conditions. The company adjusted its full-year outlook for hospitality RevPAR growth to 1.25% to 3.75% and total RevPAR growth to 0.75% to 3.25%. Despite these adjustments, guidance for adjusted EBITDAre, AFFO, and AFFO per fully diluted share remains unchanged, supported by proactive cost management and a unique business model.
In summary, Ryman Hospitality Properties’ earnings call painted a picture of strong first-quarter performance with record growth across segments. While economic uncertainties and government business pullbacks pose challenges, the company’s effective cost management and strong forward bookings provide a solid foundation for navigating near-term volatility. Investors can take confidence in Ryman’s strategic focus on long-term value creation and cost efficiencies.