Ryman Hospitality Properties (RHP) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 consolidated revenue of $613.3 million, driven by strong Hospitality and Entertainment segment growth and robust group business, offsetting leisure transient softness in Nashville and Orlando.

• Net income rose 49.3% to $104.7 million, with diluted EPS up 43.5% to $1.65, and operating income increased 37.5% to $168.1 million.

• Group bookings and ADR for future years reached all-time highs, with over 781,000 same-store Gross Definite Room Nights booked at a record ADR of $284, up 7.3% from Q2 2023.

• Strategic investments and renovations are underway across key properties to enhance competitive positioning.

• Entertainment segment achieved all-time record revenue, driven by Grand Ole Opry, Ole Red Las Vegas, and new venues.

Financial highlights

• Q2 2024 consolidated revenue was $613.3 million, up 21.5% year-over-year, with net income available to common stockholders of $100.8 million, up 51.5%.

• Adjusted EBITDAre for Q2 2024 was $233.2 million, up 33.5% year-over-year, with margin expansion to 38.0%.

• Same-store Hospitality segment RevPAR grew 4.6% and ADR increased 3.8% year-over-year; total RevPAR up 9.4%.

• Q2 net income margin was 17.1% (up 3.2 pts); operating margin was 27.4% (up from 24.2% in Q2 2023).

• Entertainment segment Q2 revenue reached $94.2 million, up 8.1% year-over-year, with margin expansion.

Outlook and guidance

• Raised full-year 2024 guidance for net income, operating income, Adjusted EBITDAre, and AFFO, reflecting $9.1 million in franchise tax refunds and $4 million in 2024 expense reductions.

• Lowered full-year same-store Hospitality RevPAR and total RevPAR growth outlook due to continued leisure transient softness.

• New 2024 midpoint guidance: net income $284.3 million, Adjusted EBITDAre $775.5 million, Adjusted FFO per diluted share/unit $8.30.

• Full-year capital expenditures expected at $400 million midpoint; dividend plan remains $4.40 per share in cash.

• No debt maturities until January 2026; management expects to refinance debt prior to maturity.