Ryman Hospitality Properties, Inc. Agrees to Increase Ownership in Gaylord Rockies Joint Venture From 35% to Approximately 62...
September 14 2018 - 8:10AM
Ryman Hospitality Properties, Inc. (NYSE: RHP) announced today that
it has agreed to a transaction that will increase its ownership
stake in the joint venture that owns Gaylord Rockies Resort and
Convention Center, a 1,500-room hotel and convention center
development under construction in Aurora, Colorado. The development
is expected to open in the fourth quarter of 2018. The Company will
pay funds managed by affiliates of Ares Management L.P. (NYSE:
ARES) and its affiliates approximately $242 million in cash in
exchange for an approximately 27.3 percent interest in the joint
venture entity. The transaction is subject to certain closing
conditions, including joint venture lender consent, and is expected
to close by the end of 2018. The Company’s equity ownership in the
Gaylord Rockies development will increase to approximately 62.3
percent, as compared to its previous 35 percent interest. The
Company has sufficient cash on hand and availability under its
existing credit facilities to finance the cash purchase price.
Colin Reed, chairman and chief executive officer
of Ryman Hospitality Properties, said, “We are pleased to have the
opportunity to increase our ownership in the Gaylord Rockies
development as the project is nearing completion. This investment
reinforces our confidence in the unique strengths of our
group-centric hotel model and provides an efficient means to
increase our share of the group market as we introduce the Gaylord
Hotels brand to new association and corporate customers from this
important region of the country.”
Upon the transaction closing, the Company will
become the majority owner and the managing member of the Gaylord
Rockies property, and RIDA Development will be the co-managing
member responsible for designated development projects at Gaylord
Rockies as well as ongoing government relations. As a result,
rather than reporting pro-rata income from the joint venture as an
equity method investment, the Company expects to fully consolidate
results for Gaylord Rockies and include the property within its
Hospitality segment. The Company expects to consolidate the joint
venture’s balance sheet, including its outstanding debt that is
projected to be approximately $540 million at the time the
transaction is expected to close. The Company’s financial
statements would also reflect the interests held by the minority
investors in the project.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains statements as to the
Company’s beliefs and expectations of the outcome of future events
that are forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. You can identify these
statements by the fact that they do not relate strictly to
historical or current facts. Examples of these statements include,
but are not limited to, statements regarding the consummation of
the proposed transaction, the anticipated opening of the Gaylord
Rockies Resort and Convention Center, and the Company’s future
consolidation of the results of operations and debt of the Gaylord
Rockies Resort and Convention Center joint venture. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include risks and uncertainties associated
with proposed transaction including, but not limited to, the
occurrence of any event, change or other circumstance that could
delay the closing of the proposed transaction; the Company’s
ability to utilize its existing borrowing capacity under the
Company’s credit facility; the possibility of the non-consummation
of the proposed transaction; certain conditions to closing,
including obtaining any joint venture lender consent and
finalization of joint venture agreements and the possibility that
such conditions to closing may not be met; and transaction costs
which have been and may continue to be incurred related to the
proposed transaction. Other factors that could cause operating and
financial results to differ are described in the filings made from
time to time by the Company with the U.S. Securities and Exchange
Commission and include the risk factors and other risks and
uncertainties described in the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2017 and its Quarterly
Reports on Form 10-Q and subsequent filings. Except as required by
law, the Company does not undertake any obligation to release
publicly any revisions to forward-looking statements made by it to
reflect events or circumstances occurring after the date hereof or
the occurrence of unanticipated events.
About Ryman Hospitality Properties,
Inc.
Ryman Hospitality Properties, Inc. (NYSE:
RHP) is a REIT for federal income tax purposes, specializing in
group-oriented, destination hotel assets in urban and resort
markets. The Company’s owned assets include a network of four
upscale, meetings-focused resorts totaling 8,114 rooms that are
managed by lodging operator Marriott International,
Inc. under the Gaylord Hotels brand. Other owned assets
managed by Marriott International, Inc. include Gaylord
Springs Golf Links, the Wildhorse Saloon, the General Jackson
Showboat, The Inn at Opryland, a 303-room overflow hotel
adjacent to Gaylord Opryland and AC Hotel Washington, DC
at National Harbor, a 192-room hotel near Gaylord National.
The Company also owns and operates media and entertainment assets,
including the Grand Ole Opry (opry.com), the legendary weekly
showcase of country music’s finest performers for over 90 years;
the Ryman Auditorium, the storied former home of the Grand Ole
Opry located in downtown Nashville; 650 AM WSM, the Opry’s
radio home; Ole Red, a country lifestyle and entertainment
brand; and Opry City Stage, the Opry’s first home away from home,
in Times Square. For additional information about Ryman
Hospitality Properties, visit www.rymanhp.com.
About RIDA Development
Corporation
RIDA Development Corporation has achieved an
international reputation for creating innovative, high quality, and
successful real estate ventures. Headquartered in Houston, Texas
and founded in 1972 by David Mitzner, RIDA operates major divisions
in Texas, Florida, and Europe. RIDA is one of Poland's largest and
most well - known private investment groups. In the United States,
RIDA is one of the South’s most active development groups, and is
currently managing and developing projects worldwide in retail,
office, distribution, residential, hotel and mixed- use land
developments with a value in excess of $6 billion. As one of the
country's most active conference hotel developers, RIDA's major
hotel development projects have earned a reputation as among the
industry’s most creative developers and builders. For more
information visit www.Ridadev.com.
About Ares Management, L.P.
Ares Management, L.P. is a publicly traded,
leading global alternative asset manager with approximately $121.4
billion of assets under management as of June 30, 2018 and 18
offices in the United States, Europe, Asia and Australia. Since its
inception in 1997, Ares has adhered to a disciplined investment
philosophy that focuses on delivering strong risk-adjusted
investment returns throughout market cycles. Ares believes each of
its three distinct but complementary investment groups in Credit,
Private Equity and Real Estate is a market leader based on assets
under management and investment performance. Ares was built upon
the fundamental principle that each group benefits from being part
of the greater whole. For more information, visit www.aresmgmt.com.
Source: Ryman Hospitality Properties, Inc.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President and Chief Financial Officer |
Shannon Sullivan, Vice President of Corporate & Brand
Communications |
Ryman Hospitality Properties, Inc. |
Ryman Hospitality Properties, Inc. |
615-316-6588 |
(615) 316-6725 |
mfioravanti@rymanhp.com |
ssullivan@rymanhp.com |
~or~ |
~or~ |
Todd Siefert, Vice President of Corporate Finance &
Treasurer |
Robert Winters or Sam Gibbons |
Ryman Hospitality Properties, Inc. |
Alpha IR Group |
615-316-6344 |
(929) 266-6315 or (312) 445-2874 |
tsiefert@rymanhp.com |
robert.winters@alpha-ir.com; sam.gibbons@alpha-ir.com |
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