RHP: Record hospitality growth and stronger group demand lift outlook despite General Jackson costs

What happened

Ryman Hospitality Properties reported record third-quarter revenue and Adjusted EBITDAre, a company earnings measure, from same-store hospitality, with revenue per available room up 7.9% and group bookings strengthening. It raised hospitality guidance and expected near-10% growth in adjusted funds from operations per share, despite a $3 million reduction to entertainment guidance.

Confirmed

Global impact / market context

Record hospitality revenue, higher expected profit and stronger group bookings point to more cash coming from hotel operations. That can support expected growth in funds available per share, but the lower entertainment outlook shows that hospitality gains must offset weaker performance elsewhere in the business.

Analyst inference

The supplied summary points to diverging performance within Ryman: hospitality is setting records, while entertainment guidance has been reduced because of General Jackson costs. For investors, this makes the balance between hotel demand and entertainment expenses important to expected company-wide cash generation and per-share growth.

Analyst inference

What to watch

1. Look for later results to show whether the 7.9% increase in revenue per available room and stronger group bookings continue to support record hospitality revenue. Analyst inference
2. Check whether management maintains its higher hospitality guidance and near-10% adjusted funds-from-operations-per-share growth expectation as the year progresses. Analyst inference
3. Watch for further detail on General Jackson costs and entertainment guidance; additional cost pressure could offset hospitality’s contribution to company-wide growth. Analyst inference

Evidence

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