Ryman Hospitality Properties Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Woronka - Deutsche Bank AG - Analyst : Congratulations on a very nice quarter. I was hoping to kind of ask first, I understand maybe Patrick had some data points about April production. But really just trying to kind of I guess, delineate what may be short term, how short term in nature is the hesitancy that you're seeing because it sounds like you're still seeing very good momentum for the out year. So what allows this to stay to kind of a 2025 issue, if that makes sense.

Question: Chris Woronka - Deutsche Bank AG - Analyst : Yes. Agreed. And I appreciate all those data points, sounds pretty encouraging. If I could sneak in a quick follow-up, just going back to the comment about costs, and you brought in the RevPAR guidance by a point and total RevPAR by a point, but the EBITDA remains unchanged. I mean, can you give us maybe an example two of what actually -- what are the costs that you can -- or was it just the conservatism the initial guide or what allows you to kind of stick to that range with possibly lower RevPAR.

Question: Chris Woronka - Deutsche Bank AG - Analyst : Okay. Super helpful. I appreciate all the color guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 4:00PM, RHP.N - Q1 2025 Ryman Hospitality Properties Inc Earnings Call

Question: Jack Armstrong - Wells Fargo - Analyst : Can you elaborate a little bit more on the strategy behind the acquisition of the majority interest in southern entertainment. And are there other similar types of opportunities in your evaluating market to grow over year?

Question: Jack Armstrong - Wells Fargo - Analyst : Great. That's really helpful. And as you're kind of continuing to expand OEG pretty fantastic growth rate in Q1 with the addition of Southern Entertainment, are you starting to think more about the point where you're going to have to spin out at least a portion of OEG given that probably approaching the bad income threshold to where you might lose your REIT status? Or is that still a little bit further out given the macroeconomic uncertainty? Quite a big one, right?

Question: Duane Pfennigwerth - Evercore ISI - Analyst : I wanted to ask you about the typical composition of in the year for the year demand more broadly. I don't know if there's such a thing as a typical year anymore or a normal year anymore, but -- if you enter a year at 50% occupied and end the year at 70%, what is the composition of that 20 points of OC that you pick up in the year? And how might the composition of that look different this year?

Question: Duane Pfennigwerth - Evercore ISI - Analyst : Appreciate that. And then one question we're getting from clients here is, can you speak to the implied attrition cancellation embedded in the guidance for the rest of the year?

Question: Smedes Rose - Citigroup Inc - Analyst : I just wanted to ask a little bit more. You sort of talked a little bit in your opening remarks call about -- so the cancellations that you are seeing in the year for the year, it sounds like some of that is some government business that the association business is hanging in there. I guess, could you just talk a little bit more about the composition of who's dropping out? And if you're seeing it any one property, maybe even more than another? Or is it sort of equal throughout the portfolio? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 4:00PM, RHP.N - Q1 2025 Ryman Hospitality Properties Inc Earnings Call

Question: Smedes Rose - Citigroup Inc - Analyst : And I just wanted to ask you, I mean, you guys have talked about this before, but I'd be interested in any sort of updates on the positive or potentially negative or neutral impact from the opening of I think Clavis scheduled to open later this month. I think before, you've talked about the overall sort of group system broadening out and more people coming into the Gaylord system. Is that sort of still the case? Or has there been any changes, I guess, with the kind of change in the uncertainty around the macro environment?

Question: Ari Klein - BMO Capital Markets - Analyst : I was hoping maybe you can provide a little bit more color on the end of year for the year expectations within the guidance and how -- maybe how that changed from what you thought would look like previously? And then maybe just from a renovation disruption standpoint, yes, I think you're expecting 300 basis points for the year. What was that in Q1? And what does that kind of look like the rest of the year?

Question: Ari Klein - BMO Capital Markets - Analyst : And then you mentioned potentially pulling back on some projects, depending on the macro. Is that something you're currently evaluating? Or that really -- would you really need to see the macro materially weaken there? And then some of the planned projects are pretty significant in scope. Is there any material impact on cost you're anticipating from tariffs?

Question: Shaun Kelly - BofA Securities - Analyst : First, I just wanted to go back to some of the government stuff. And I apologize if I missed this earlier, I had some technical issues joining, but big picture, just could you remind us across the portfolio, what government exposure across both sort of normal segments and association if that's relevant. And then I think there's been a lot of questions we've had on the national. So could you help us break down kind of the curve there a little bit in terms of exposures and sort of how you think that property weathers the efficiency drive in D.C. based on what you're seeing right now?

Question: Shaun Kelly - BofA Securities - Analyst : Perfect. And --

Question: Shaun Kelly - BofA Securities - Analyst : Fantastic. And then second question, and this is sort of the bigger picture strategy point. But during COVID, you all sort of leaned in, I think, very creatively when you saw sort of a market share opportunity. Given that every downturn is a little different and that was a lot of cancellation rebook activity, but an environment no one could control? Based on what we see right now, do you think this is a little bit more of a kind of a classic pullback? And would the general approach to be a little bit on the enforcement side of cancellation fees? Or how do you kind of strike the right balance? Because obviously, as we look back, I think your approach during COVID had a lot of merits to it.

Question: David Katz - Jefferies - Analyst : So number 1, I wanted to just sort of go a little further with respect to the productivity plan. And if you could flesh that out of it, is that yours? Is it in conjunction with Marriott? What -- how is that working? And what's that about? And then secondarily, with respect to the entertainment side, what do we know about sort of behavior economic cycles? And are you seeing anything that's sort of interesting or noteworthy, not necessarily negative but just trying to get a better sense of that customer base.

Question: David Katz - Jefferies - Analyst : It was. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 02, 2025 / 4:00PM, RHP.N - Q1 2025 Ryman Hospitality Properties Inc Earnings Call

Question: Chris Darling - Green Street - Analyst : Colin, in your prepared remarks, you talked about Ryman's experience in the great financial crisis. I think you mentioned that the decline to profitability was about half that of the broader hotel industry. Hoping you could elaborate on some of the driving factors there. And then as I think about what might be different going forward, presumably, Ryman's ADR is much higher today relative to the comp set than it was at the time. And I wonder if you think that might create incremental risk relative to past cycles.

Question: Chris Darling - Green Street - Analyst : Yes, I was going to say helpful context all around. So thank you for the time.

Question: Jay Kornreich - Wedbush Securities - Analyst : I'll just do one question here. Just going back to the leisure transient customer, which you said saw a return of growth in the first quarter. Just curious if you've seen any type of softness or change in habits in that customer base since April started -- and if there's much concern for slowdown and that leisure travel -- leisure trend segment as the year progresses or if you expect some of that first quarter strength to continue?

Question: John DeCree - CBRE Securities - Analyst : I think you answered my question on leisure there, but you brought up international travel. I'm not sure if inbound international travel is a very large piece of your business. I'm sure it's not, but maybe on the small side. It's a team that we're hearing in the travel and leisure industry. So curious if you have much exposure to any international travel and if you've kind of seen any change in those patterns?