Ryman Hospitality Properties (RHP) Q2 2024 earnings summary

Executive summary

• Achieved record Q2 2024 consolidated revenue of $613.3 million, net income of $104.7 million, and Adjusted EBITDAre of $233.2 million, driven by strong group business and entertainment segment performance, despite leisure transient softness in Nashville and Orlando.

• Group bookings and ADR for all future years reached all-time highs, with over 781,000 gross group room nights booked at a record ADR of $284, up 7.3% year-over-year.

• Entertainment segment achieved all-time record revenue of $94.2 million, up 8.1% year-over-year, driven by strong show calendars and new venue openings.

• Hospitality segment benefited from the addition of JW Marriott Hill Country and higher group business, with JW Hill Country contributing $62.9 million in Q2 revenue.

• Operating income increased 37.5% to $168.1 million, with diluted EPS up 43.5% to $1.65.

Financial highlights

• Q2 2024 consolidated revenue was $613.3 million, up 21.5% year-over-year; Adjusted EBITDAre was $233.2 million, up 33.5% year-over-year.

• Q2 net income available to common stockholders was $100.8 million, up 51.5% year-over-year; net income margin was 17.1%.

• Q2 Adjusted EBITDAre margin expanded to 38.0%, and operating margin rose to 27.4%.

• Same-store Hospitality segment saw RevPAR growth of 4.6% to $185.95, ADR up 3.8% to $254.16, and occupancy at 73.2%.

• Entertainment segment Q2 operating income was $25.8 million, up 5% year-over-year.

Outlook and guidance

• Raised full-year 2024 guidance for consolidated net income, operating income, Adjusted EBITDAre, and Adjusted FFO, reflecting tax and interest savings.

• Lowered full-year same-store Hospitality RevPAR and total RevPAR growth outlook due to continued leisure transient softness, with stronger growth expected in Q4.

• Full-year capital expenditures expected at $400 million midpoint, focused on property enhancements and renovations.

• Dividend plan remains $4.40 per share in cash, targeting at least 100% of REIT taxable income.

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