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Ryman Hospitality Properties(RHP) - 2024 Q4 - Earnings Call Transcript
RHPRyman Hospitality Properties(RHP)2025-02-21 23:15
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Financial Data and Key Metrics Changes - For Q4 2024, consolidated revenue increased by 2% year-over-year, while consolidated adjusted EBITDAre grew by 1% and AFFO increased by 4% [17][18][38] - Full-year 2024 results showed consolidated revenue growth of 8%, adjusted EBITDAre growth of 10%, and AFFO growth of 12% [14][38] Business Line Data and Key Metrics Changes - The same-store hospitality business generated approximately 496millioninrevenueforQ4,markingthesecond−bestquarterever[21]−ADR(AverageDailyRate)increasedbyapproximately2496 million in revenue for Q4, marking the second-best quarter ever [21] - ADR (Average Daily Rate) increased by approximately 2% to a new record of 260, with strong performance in both group and leisure rates [22] - The entertainment segment reported record revenue of 98millionforQ4,a1298 million for Q4, a 12% increase year-over-year, with adjusted EBITDAre increasing by approximately 6% despite construction disruptions [30] Market Data and Key Metrics Changes - Leisure room nights at Gaylord Texan decreased by 19% and at Gaylord Opryland by 6% during the last two weeks of December, which is a critical period accounting for nearly 40% of leisure room nights [19][20] - The JW Hill Country achieved RevPAR growth of 14% and total RevPAR growth of 27%, driven by successful live programming [24] Company Strategy and Development Direction - The company is focused on long-term positioning of hotel assets to capture premium group customer bases, with significant investments in Gaylord Opryland and Gaylord Rockies [9][10] - A strategic investment in Southern Entertainment was made to enhance live music experiences and connect with more country music fans [11] - The company aims to achieve adjusted EBITDAre in the range of 900 million to 1billionby2027,despitecurrentmacroeconomicchallenges[15]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedoptimismaboutthepaceofbookingsandtheresponsefromthemeetingcommunitytocapitalplans,resultinginarecordnumberofgrouproomnightsbookedforfutureyears[13]−ThecompanyanticipatesRevPARgrowthof2.251 billion by 2027, despite current macroeconomic challenges [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the pace of bookings and the response from the meeting community to capital plans, resulting in a record number of group room nights booked for future years [13] - The company anticipates RevPAR growth of 2.25% to 4.75% for 2025, with adjusted EBITDAre expected to be between 675 million and 715million[35][38]OtherImportantInformation−Thecompanyendedtheyearwith715 million [35][38] Other Important Information - The company ended the year with 478 million in unrestricted cash and a total available liquidity of approximately 1.2billion[42]−Afirst−quarterdividendof1.2 billion [42] - A first-quarter dividend of 1.15 was declared, payable on April 15, 2025 [44] Q&A Session Summary Question: Can you discuss the renovations planned beyond the current ones and their timing? - Management indicated ongoing renovations at Gaylord Opryland, with completion expected in June 2025, and room renovations at Gaylord Texan starting in Q2 2025 [49][51] Question: What are the expected labor and wage cost increases for 2025? - Wage costs increased by about 3.3% in 2024, with a similar increase expected for 2025 [65][68] Question: How is the mix of bookings changing? - There is a higher mix of corporate bookings, with efforts to attract premium corporate groups while still valuing association business [71][72] Question: What is the outlook for the Gaylord National property? - Management expressed minimal reliance on the local DC market and is focusing on increasing association business to mitigate potential risks [112][113] Question: How does the company manage expense structures in light of lower out-of-room spending? - The company has various levers to manage expenses and maintain margins, even with shifts in group mix [118][120]