Ryman Hospitality Properties (RHP) Q1 FY26 earnings call: guidance and Q&A

The hospitality business delivered meaningful outperformance in Q1 FY26, with same-store ADR increasing over 5% year-over-year, effectively offsetting lower group occupancy. This strong performance was attributed to pricing discipline, effective mix management towards higher-value customers, and enhanced monetization of on-site demand. Notably, Gaylord Opryland achieved record Q1 revenue and adjusted EBITDA, Gaylord Rockies delivered record Q1 revenue, and Gaylord Palms recorded its highest revenue and adjusted EBITDAre in history. JW Marriott Desert Ridge also showed strong results under the company's group-focused strategy.

Leading indicators for group demand remained resilient, with attrition improving year-over-year (excluding the impact of a winter storm in January) and cancellations remaining essentially flat. Group bookings activity was exceptionally strong in Q1, with gross group room nights booked for all future periods increasing nearly 27% year-over-year, marking the strongest Q1 production since 2018. Corporate bookings constituted approximately two-thirds of this production, reflecting a successful focus on premium corporate groups.

Ryman Hospitality has refined its inventory management to allocate more sellable inventory within the 24-month corporate booking window. This strategy aims to increase the corporate mix, leading to higher room rates, enhanced outside-the-room spending, and improved profitability. While this approach creates challenging year-over-year comparisons for 2027 and 2028 bookings, management is confident in achieving future booking goals, citing strong corporate meeting planner feedback and lead volumes that are 27% above 2019 levels. Corporate mix is already showing an upward trend, up 3 points for the rest of FY26 and FY27, and 6 points for FY28.

The entertainment business's Q1 results saw a year-over-year decline due to a challenging comparison, seasonality, and the winter storm, but overall performance aligned with expectations. Both Old Red and Category brands exceeded expectations, particularly in Nashville and Las Vegas, with Old Red Las Vegas achieving record multi-revenue and adjusted EBITDAre in its operating history for March. The segment boasts a robust growth pipeline, including a new development partnership in Indianapolis, and continues to strengthen its management structure and technology capabilities.

The company is actively investing in its portfolio, with several major capital projects progressing on time and on budget. These include the JW Marriott Hill Country rooms renovation (kicked off in April 2026, expected completion Q1 2027), Gaylord Opryland meeting space expansion, Gaylord Texan Ridge renovation (expected completion August 2026), and Category 1 Las Vegas development. Additionally, Ryman is exploring expansion opportunities at Gaylord Rockies and JW Hill Country, aiming to add capacity and further enhance offerings for premium corporate groups.

Ryman Hospitality ended Q1 with a strong financial position, holding $424 million in unrestricted cash and $1.35 billion in total available liquidity. In March, the company opportunistically refinanced, issuing $700 million of senior unsecured notes due 2034 and redeeming prior 2027 notes. This action extended its weighted average maturity and eliminated near-term refinancing risk through the first half of 2028. The pro forma net leverage ratio stood at a healthy 4.3x at quarter-end.