Executive Summary / Key Takeaways

• Differentiated Business Model: Ryman Hospitality Properties ($RHP) stands as a unique REIT, specializing in large-scale, group-oriented convention resorts managed by Marriott and a growing portfolio of iconic country music entertainment assets. This dual-segment strategy, underpinned by a single-manager hotel model, provides a distinct competitive advantage in experiential hospitality.
• Strategic Capital Deployment & Growth: RHP is executing a multi-year, multi-billion-dollar capital program focused on enhancing its existing hotel portfolio and expanding its entertainment offerings. These investments, including the recent JW Marriott Desert Ridge acquisition and Opryland meeting space expansion, are designed to attract premium corporate groups and drive mid-teens unlevered returns.
• Resilient Performance Amidst Headwinds: Despite macroeconomic uncertainties, government-related business pullbacks, and new hotel supply in Nashville, RHP demonstrated strong Q3 2025 results, outperforming the industry in RevPAR and Total RevPAR index. Proactive margin management and contractual group bookings provide significant downside protection.
• Robust Future Bookings & Outlook: The company boasts record group room nights on the books for future years, with 2026 and 2027 pacing significantly ahead in revenue, primarily driven by rate growth. Management anticipates continued growth, with specific guidance for 2025 Adjusted EBITDAre between $772 million and $802 million, and a long-term target of $900 million to $1 billion by 2027.
• Entertainment Segment Expansion: The Opry Entertainment Group (OEG) is a high-growth engine, expanding its global reach with international performances and new venues like Category 10 Las Vegas. This segment diversifies RHP's revenue streams and capitalizes on the surging popularity of country music.

The Experiential Advantage: Ryman's Unique Position in Hospitality and Entertainment

Ryman Hospitality Properties, Inc. ($RHP) operates as a specialized real estate investment trust (REIT) with a distinctive focus on two high-value segments: upscale, group-oriented convention center resorts and a dynamic portfolio of country music entertainment assets. This dual-pronged strategy positions RHP as a leader in experiential hospitality, offering integrated lodging and entertainment that caters to both large-scale conventions and leisure travelers seeking immersive cultural experiences. The company's core hotel holdings include five Gaylord Hotels properties and two JW Marriott resorts, all managed by Marriott International, Inc. . This single-manager model is a foundational strength, enabling streamlined operations and a unified sales approach across its extensive network of 12,364 rooms and over 3 million square feet of meeting space.

RHP's journey as a REIT began in January 2013, following a strategic decision in October 2012 to sell the Gaylord Hotels brand and management rights to Marriott for $210 million. This move allowed RHP to focus on asset ownership while leveraging Marriott's global operational expertise. The company's history is marked by strategic growth and resilience, notably navigating the devastating Nashville flood in 2010 and adapting to the unprecedented challenges of the COVID-19 pandemic. These experiences have forged a management team adept at responding to market dislocations and emerging stronger.

A critical differentiator for RHP, particularly within the REIT sector, is its operational model, which functions akin to a technological advantage. The single-manager relationship with Marriott International allows for highly coordinated sales efforts, centralized revenue management, and efficient cost control across the entire hotel portfolio. This integrated approach translates into tangible benefits: RHP's asset management team works directly with Marriott to implement profit improvement plans, leading to enhanced wage margins and improved hours per occupied room, even amidst rising labor costs. This collaborative model enables swift identification and execution of operational efficiencies on a broad scale, safeguarding profitability without compromising the customer value proposition. For instance, in Q1 2025, RHP's wage margin improved by 40 basis points, and hours per occupied room improved by 60 basis points, demonstrating effective cost management.

Competitive Landscape and Strategic Positioning

RHP operates in a competitive landscape dominated by global hospitality giants like Marriott International (MAR), Hilton Worldwide (HLT), InterContinental Hotels Group (IHG), and Wyndham Hotels & Resorts (WH). However, RHP carves out a powerful niche through its specialized focus and integrated offerings. While Marriott and Hilton offer broader portfolios and advanced digital tools for guest services, RHP's strength lies in its unique, self-contained convention resorts and destination-specific entertainment assets.

RHP's properties consistently outperform industry benchmarks. In Q3 2025, its same-store hospitality portfolio achieved a RevPAR and Total RevPAR index of approximately 141% and 195% of fair share, respectively, relative to its Marriott-defined competitive set. This outperformance underscores the effectiveness of RHP's strategy in attracting and retaining high-value group customers. The company's unique value proposition, particularly the bundled entertainment experiences like the Grand Ole Opry, differentiates it by creating immersive attractions that generalist competitors may not match. This fosters strong customer loyalty in convention segments and enhances RHP's pricing power.

The acquisition of JW Marriott Desert Ridge in June 2025 for $865 million exemplifies RHP's strategic expansion within this niche. This asset, a large Marriott-managed group hotel in a top-10 meetings market, unlocks incremental group rotation opportunities for existing Gaylord and JW customers. Management estimates that 25% to 30% of Gaylord group room nights could rotate to JW properties, with even more significant opportunities within the JW customer base. This strategic move enhances RHP's competitive moat by expanding its network of high-quality, group-focused assets and leveraging its existing sales infrastructure.

Financial Performance and Operational Momentum

RHP has demonstrated robust financial performance, reflecting its strategic investments and operational discipline. For the nine months ended September 30, 2025, total revenues reached $1.84 billion, an 8.7% increase over the same period in 2024. This growth was primarily driven by strong contributions from both the Hospitality and Entertainment segments. However, operating income for the nine months ended September 30, 2025, decreased by 7.1% to $344.16 million, and net income available to common stockholders declined by 16.4% to $169.60 million, largely due to increased interest expense from higher debt balances and a $9.10 million non-recurring Tennessee franchise tax refund in the prior year.

The Hospitality segment, RHP's core business, reported total revenues of $1.51 billion for the nine months ended September 30, 2025, up 4.6% year-over-year. While occupancy slightly decreased to 69.8%, average daily rate (ADR) increased by 2.2% to $260.25, leading to a 1.9% increase in RevPAR to $181.60. Total RevPAR also saw a 1.5% increase to $469.95. The segment's operating income for the nine months ended September 30, 2025, was $330.81 million. The addition of JW Marriott Desert Ridge contributed $41.50 million in revenues during RHP's ownership period in Q3 2025. Notably, Gaylord National and Gaylord Rockies achieved third-quarter record total revenue, with Gaylord Rockies' outlet sales per occupied room increasing nearly 13% due to recent capital investments.

The Entertainment segment has emerged as a significant growth driver. For the nine months ended September 30, 2025, total entertainment revenue surged by 33% to $324.44 million, with operating income increasing by 1.5% to $45.64 million. This growth was fueled by recent investments like Category 10 Nashville (opened November 2024) and the W Austin Hotel. The Grand Ole Opry's first international performance at London's Royal Albert Hall in September 2025, garnering over 1.2 billion media impressions, highlights the global appeal and expansion potential of RHP's entertainment brands.

Liquidity, Capital Allocation, and Forward Outlook

RHP maintains a strong liquidity position, with $483.30 million in unrestricted cash and $780 million available under its revolving credit facilities as of September 30, 2025, totaling nearly $1.3 billion. The company has no debt maturities until May 2027, providing financial flexibility. Capital allocation remains focused on high-return internal investments and shareholder returns. For the nine months ended September 30, 2025, capital expenditures totaled $252.10 million, with an anticipated additional $125 million to $175 million for the remainder of 2025. These investments include the ongoing $225 million multi-phase capital improvement plan at Gaylord Opryland, which involves expanding meeting space and developing a sports bar, event lawn, and pavilion, expected to open in April 2026. A rooms renovation at Gaylord Texan is slated for completion in Q2 2026, and a new Category 10 in Las Vegas is under development, targeting a Q4 2026 opening with an estimated project cost of $35 million and mid-teens unlevered IRRs.

Management's outlook for 2025 reflects a nuanced understanding of the current environment. Consolidated Adjusted EBITDAre is projected to be between $772 million and $802 million, with AFFO in the range of $509.5 million to $538 million. This guidance incorporates increased construction disruption in 2025, estimated at a $30 million to $35 million impact to Adjusted EBITDAre, primarily from the Opryland meeting space expansion. While a higher mix of association business in 2025 is expected to lead to modestly lower outside-the-room spending, this trend is anticipated to revert to a higher corporate mix in 2026. For 2026, group rooms revenue on the books for the same-store hospitality segment is pacing approximately 8% ahead of 2025, with ADR growth in the mid-single digits. The company remains committed to paying a minimum of 100% of its REIT taxable income through dividends, reinforcing its dedication to shareholder value.

Risks and Strategic Responses

Despite a compelling investment thesis, RHP faces several risks. Macroeconomic uncertainty, including government policy shifts and inflation, has led to elevated cancellation activity, particularly from the government sector, and impacted near-term group bookings. New hotel supply in Nashville has also pressured transient occupancy and room rates at Gaylord Opryland. The integration of the recently acquired JW Marriott Desert Ridge presents operational challenges, given Phoenix is a new market for RHP. Furthermore, RHP's concentration in Marriott-owned brands exposes it to risks associated with the continued success and perception of the Marriott brand.

RHP's strategic responses to these challenges are robust. The company's diversified customer base, with a significant portion of association group business, provides stability, as associations generally meet regardless of economic conditions. Contractual group bookings offer downside protection through attrition and cancellation fees. Proactive margin management, including $28 million to $30 million in profit improvement plans implemented since January 2025, helps mitigate cost pressures. The company's long-term capital deployment strategy, focused on enhancing assets and expanding into new markets, is designed to strengthen its competitive position and drive future growth, even in a volatile environment.

Conclusion

Ryman Hospitality Properties is a compelling investment story, rooted in its unique position as a specialized REIT at the intersection of upscale convention hospitality and vibrant country music entertainment. The company's strategic vision, disciplined capital allocation, and operational excellence, exemplified by its single-manager model with Marriott, are driving impressive financial performance and robust future bookings. While macroeconomic headwinds and localized competitive pressures exist, RHP's proactive management, resilient business model, and commitment to enhancing its experiential assets position it for continued growth. The expansion of its entertainment segment, particularly with the global appeal of the Grand Ole Opry and new venues like Category 10, provides a powerful growth engine. Investors looking for a differentiated play in the hospitality sector, with a clear roadmap for value creation and a strong commitment to shareholder returns, will find RHP's narrative highly attractive. The company's ability to consistently outperform its competitive set and its ambitious long-term targets underscore its potential to unlock significant value in the years to come.