Ryman Hospitality Properties(US:RHP)2023-05-06 15:21Financial Data and Key Metrics Changes - For Q1 2023, the company achieved a consolidated adjusted EBITDAre of $157.7 million, with significant contributions from both the Hospitality and Entertainment segments [30][54] - The total revenue for the quarter was $491.7 million, with a net income to common shareholders of $61.3 million, translating to $1.02 per fully diluted share [54] - The company reported a net leverage ratio of total consolidated net debt to adjusted EBITDAre at 4x, which is below the year-end 2019 level [43] Business Line Data and Key Metrics Changes - The Hospitality segment saw a record first quarter adjusted EBITDAre margin of 35.6%, with a 33% growth over Q1 2019 [64] - The Entertainment segment delivered a 33% revenue growth on a same-store basis compared to Q1 2022, with more than double the same-store adjusted EBITDAre [23][40] - Food and beverage revenue grew over $44 million or 26% compared to Q1 2019, driven by a favorable mix of corporate group room nights [26] Market Data and Key Metrics Changes - The consolidated hospitality portfolio achieved a 72.3% occupancy rate, with record ADR and total revenue [22] - Group ADR was up 12.7% and transient ADR was up 39.3% compared to Q1 2019, both reaching new all-time first quarter records [37] - The company expects RevPAR growth for the year to be in the range of 11% to 13.5%, with total RevPAR growth expected to be between 8.5% and 10.5% [27] Company Strategy and Development Direction - The company has been aggressive with pricing strategies in collaboration with Marriott, targeting a 7% to 10% growth in ADR each quarter [6] - Investments in enhancements, particularly in food and beverage, are expected to drive incremental outside-the-room spending for both leisure and group customers [9] - The company is focused on capitalizing on the favorable supply-demand backdrop, prioritizing ADR in sales production [28] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the robust demand and lead volumes, indicating a favorable environment for pricing [8] - The company remains cautious about the economic environment but is confident in its growth trajectory, having raised guidance multiple times in the past year [70] - Management highlighted the importance of face-to-face meetings and the willingness of meeting planners to spend more on out-of-room experiences [85] Other Important Information - The company ended the quarter with $318.5 million of unrestricted cash and a total liquidity of approximately $1.1 billion [31] - The Board authorized an increase in the quarterly dividend to $1 per share from $0.75, reflecting confidence in the company's financial health [33] - The company is undertaking several capital projects, including renovations and expansions, to enhance its offerings and drive future growth [73] Q&A Session Summary Question: What is the outlook for group composition and recovery in various markets? - Management noted a heavier mix of corporate versus association bookings, with corporate showing faster recovery and good rate growth [59] Question: How satisfied is Atairos with their partnership and what contributions are they making? - Management expressed satisfaction with the partnership, highlighting cultural compatibility and strategic contributions from Atairos [60] Question: How is the Washington D.C. market recovering compared to other major assets? - The D.C. market has recovered slower than others, but the company is seeing improved performance due to renovations and repositioning efforts [102][103] Question: What is the company's strategy regarding out-of-room spending? - Management indicated that meeting planners are willing to spend more on out-of-room experiences, recognizing the importance of face-to-face interactions [85][86]