Ryman Hospitality Properties, Inc.

Ryman Hospitality Properties, Inc. is a self-advised and self-administered real estate investment trust that specializes in group-oriented, destination hotel assets in urban and resort markets. The company's core holdings include a network of upscale, meetings-focused resorts totaling 11,869 rooms managed by Marriott International under the Gaylord Hotels and JW Marriott brands. The company also owns an approximate 70% controlling equity interest in the Opry Entertainment Group, which includes the Grand Ole Opry, the Ryman Auditorium, WSM-AM, Ole Red, Category 10, Block 21, and Southern Entertainment. The industry is highly competitive, with competition among convention hotels based on reputation, facility quality, meeting space, location, and service levels, and the company's hotels also compete against large municipal convention centers.

The company's primary competitors include other large convention hotels, such as the Rosen Shingle Creek, Orlando World Center Marriott, Hilton Anatole, Gaylord Pacific Resort & Convention Center, and Walt Disney World Dolphin, as identified in a ranking of the top 10 non-gaming hotels in the United States by square footage of self-contained exhibit and meeting space. The company's competitive advantages include the expansive meeting and convention facilities at its properties, the management expertise and brand recognition of Marriott, and the strong brand awareness of the Grand Ole Opry. The company believes its Gaylord Hotels and JW Marriott properties are among the leading convention hotels in the country, with Gaylord Hotels being named the 2023 and 2024 STELLA Award Gold Winner for best hotel chain by Northstar Meetings Group.

The company generates revenue through two primary segments: Hospitality and Entertainment. The Hospitality segment, which represented approximately 83% of total revenues for the fiscal year ended December 31, 2025, generates revenue from rooms, food and beverage, and other hotel services at its properties, which are leased to taxable REIT subsidiaries that engage Marriott to manage day-to-day operations. The Entertainment segment, representing approximately 17% of total revenues, generates revenue from live music venues, branded bar and music venues, a radio station, a showboat, and a mixed-use entertainment complex. The company's business model is structured to qualify as a REIT, with non-REIT operations conducted through taxable REIT subsidiaries.

The Hospitality segment includes seven major hotel properties: Gaylord Opryland Resort & Convention Center (2,888 rooms, 640,000 sq. ft. of meeting space), Gaylord National Resort & Convention Center (1,996 rooms, 501,000 sq. ft.), Gaylord Texan Resort & Convention Center (1,814 rooms, 488,000 sq. ft.), Gaylord Palms Resort & Convention Center (1,718 rooms, 467,000 sq. ft.), Gaylord Rockies Resort & Convention Center (1,501 rooms, 409,000 sq. ft.), JW Marriott San Antonio Hill Country Resort & Spa (1,002 rooms, 268,000 sq. ft.), and JW Marriott Phoenix Desert Ridge Resort & Spa (950 rooms, 243,000 sq. ft.). The segment also includes the Inn at Opryland (303 rooms) and the AC Hotel (192 rooms). For the year ended December 31, 2025, the Hospitality segment generated total revenues of $2,143,086,000 ¹ and operating income of $462,177,000 ².

The Entertainment segment includes the Grand Ole Opry, which celebrated its 100th anniversary in 2025 and is broadcast live on WSM-AM, the longest running live radio program in the United States; the Ryman Auditorium, a National Historic Landmark; Block 21, a mixed-use complex in Austin, Texas that includes the Austin City Limits Live at the Moody Theater; six Ole Red venues; Category 10 Nashville, a 67,000 square foot venue; and a majority interest in Southern Entertainment, a music festival and events production company. For the year ended December 31, 2025, the Entertainment segment generated total revenues of $433,975,000 ³ and operating income of $68,539,000 ⁴.

Significant operational developments during the period included the purchase of JW Marriott Desert Ridge on June 10, 2025 for $862.0 million ⁵ in net cash, the issuance of $625.0 million ⁶ in 6.50% senior notes due 2033 in June 2025, the issuance of approximately 3.0 million ⁷ shares of common stock in May 2025 for net proceeds of $275.5 million ⁸, the defeasance of the Block 21 CMBS loan in April 2025 using incremental borrowings under the OEG credit facility, and the purchase of a majority and controlling equity interest in Southern Entertainment in January 2025. The company also continued its capital investment program, spending $358.2 million ⁹ and $407.9 million ¹⁰ on capital expenditures in 2025 and 2024, respectively, and declared approximately $291.3 million ¹¹ and $268.3 million ¹² in cash distributions in 2025 and 2024, respectively.

Total revenues for the fiscal year ended December 31, 2025 were $2,577,061,000 ¹³, a 10.2% increase from $2,339,226,000 ¹⁴ in 2024. Net income was $247,310,000 ¹⁵ in 2025, an 11.7% decrease from $280,190,000 ¹⁶ in 2024. Net income available to common stockholders was $243,425,000 ¹⁷ in 2025, compared to $271,638,000 ¹⁸ in 2024. Diluted earnings per share was $3.77 ¹⁹ in 2025, compared to $4.38 ²⁰ in 2024. Operating income was $487,012,000 ²¹ in 2025, compared to $490,834,000 ²² in 2024. The increase in total revenues was driven by increases in the Hospitality segment of $146.0 million ²³ and the Entertainment segment of $91.8 million ²⁴, partially offset by a $3.8 million ²⁵ decrease in operating income and a $32.9 million ²⁶ decrease in net income, which was also impacted by a $23.6 million ²⁷ increase in interest expense and a $10.3 million ²⁸ increase in loss from unconsolidated joint ventures.

A primary growth vector is the expansion of the hotel asset portfolio through acquisitions of group-oriented large hotels with over 400 rooms in urban and resort group destination markets. The company purchased JW Marriott Hill Country in June 2023 and JW Marriott Desert Ridge in June 2025 as part of this strategy. The company also identified over $1 billion ²⁹ in capital investment opportunities across its entire hotel portfolio in early 2024, with projects anticipated to be completed in phases through 2027. Specific projects include a nearly $225 million ³⁰ multi-phase capital improvement plan at Gaylord Opryland, which involves expanding approximately 108,000 square feet ³¹ of premium meeting space, constructing a sports bar, event lawn and pavilion, and renovating multiple ballrooms.

Another growth vector is the expansion of the Entertainment segment's brand and venue portfolio. The company has invested in six Ole Red locations, purchased Block 21, opened Category 10 Nashville in November 2024, and purchased a majority interest in Southern Entertainment in January 2025. Future expansion includes a Category 10 location on the Las Vegas strip anticipated to open in late 2026 and a third location at Universal Orlando Resort's CityWalk anticipated to open in late 2027. In January 2026, OEG began managing the Ascend Amphitheater in downtown Nashville under an initial ten-year management agreement, committing to invest a minimum of $12 million ³² in capital expenditures. In February 2026, OEG expects to begin managing the CCNB Amphitheatre outside of Greenville, South Carolina under an initial eleven-year management agreement, committing to invest a minimum of $6 million ³³ in capital expenditures.

The company's cost structure is influenced by operating expenses in its Hospitality and Entertainment segments. Total operating expenses increased 13.1% to $2,090,049,000 ³⁴ in 2025 from $1,848,392,000 ³⁵ in 2024, driven by increases in Hospitality segment expenses of $116.3 million ³⁶ and Entertainment segment expenses of $82.1 million ³⁷, as well as a $42.5 million ³⁸ increase in depreciation expense. The company noted that total operating expenses for 2024 were reduced by a $9.1 million ³⁹ refund of Tennessee franchise tax for prior years that did not recur in 2025. The company's weighted average interest rate on borrowings, excluding capitalized interest but including the impact of interest rate swaps, was 6.5% ⁴⁰ in 2025 and 6.7% ⁴¹ in 2024.

The company anticipates investing between approximately $350 million and $450 million ⁴² in capital expenditures during 2026. These investments include a meeting space expansion at Gaylord Opryland, rooms renovations at Gaylord Texan and JW Marriott Hill Country, the construction of Category 10 Las Vegas, the construction of Category 10 at Universal Orlando Resort's CityWalk, and ongoing maintenance capital for all current facilities. The company's dividend policy provides for minimum dividends of 100% of REIT taxable income annually, subject to board discretion. The company declared approximately $291.3 million ⁴³ in cash distributions in 2025.

The company's capital allocation strategy is focused on returning capital to stockholders through dividends and investing in assets and operations. The company's short-term capital allocation strategy is focused on returning capital to stockholders through the payment of dividends, in addition to investing in its assets and operations. The company's dividend policy provides that it will make minimum dividends of 100% of REIT taxable income annually, subject to the board of directors' future determinations. The company declared approximately $291.3 million ⁴⁴ and $268.3 million ⁴⁵ in cash distributions in 2025 and 2024, respectively.

Management identified several headwinds and constraints. Same-store net definite group room nights booked decreased 10.5% ⁴⁶ in 2025 compared to 2024, as ongoing economic policy uncertainty weighed on near-term meeting planner decision-making. Same-store in-the-year-for-the-year cancelled room nights increased by approximately 27,000 ⁴⁷ rooms in 2025 compared to 2024 due to macroeconomic uncertainty. The company also noted that inflation has had a more meaningful impact on its business during recent periods, though favorable ADR and outside-the-room spend have reduced the impact. Increased interest rates have driven higher interest expense, although 88% ⁴⁸ of outstanding debt is fixed-rate after considering interest rate swaps.

The company faces structural headwinds including the geographic concentration of its hotel properties, which subjects it to greater risk from local economic conditions, natural disasters, and declines in air travel. The company also noted that its group room rates may be contracted several years in advance, exposing it to increases in operating costs over time that may not be offset by these rates, potentially resulting in reduced margins. Additionally, the company's TRS lessee structure subjects it to the risk of increased hotel operating expenses and the inability of its TRS lessees to make lease payments.

The company's business is concentrated in the group-oriented meetings sector of the hospitality industry, and a downturn in this sector would have a material adverse effect on its financial condition. The company's hotel properties are concentrated in a limited number of geographic markets, including Nashville, Orlando, Dallas, San Antonio, Washington D.C., Denver, and Phoenix, subjecting it to greater risk from local economic conditions and natural disasters. The company relies entirely on Marriott to manage its hotel properties, and any failure by Marriott to do so successfully could materially reduce revenues and net income. The company has substantial debt of approximately $4.0 billion ⁴⁹ at December 31, 2025, which could reduce cash flow and limit business activities. The company's ability to qualify as a REIT depends on complex tax rules, and failure to remain qualified would subject it to corporate income tax and reduce cash available for distributions.

Management's message emphasizes the company's goal to be the nation's premier hospitality REIT for group-oriented, destination hotel assets in urban and resort markets. Key strategic priorities include expanding the hotel asset portfolio through acquisitions, as demonstrated by the purchases of JW Marriott Hill Country and JW Marriott Desert Ridge; continuing investment in existing properties, with over $1 billion ⁵⁰ in identified capital investment opportunities; and leveraging brand name awareness, particularly the Grand Ole Opry, through venue expansion and strategic partnerships. Management also highlights the company's short-term capital allocation strategy focused on returning capital to stockholders through dividends.