- Also Announces Preliminary Fourth Quarter and
Full Year 2015 Bookings, RevPAR and Total RevPAR Highlights -
Ryman Hospitality Properties, Inc. (NYSE:RHP), a lodging real
estate investment trust ("REIT") specializing in group-oriented,
destination hotel assets in urban and resort markets, today
announced plans for a $120 million expansion of Gaylord Texan
Resort and Convention Center in Grapevine, Texas.
The expansion will add 300 guest rooms to the resort’s current
1,511 room inventory and will add 86,000 square feet of carpeted
meeting space, bringing the total meeting space to approximately
490,000 square feet. Once the expansion is complete, Gaylord Texan
will become the second largest non-gaming convention center hotel
in the United States as measured by total self-contained exhibit
and meeting space, behind Gaylord Opryland Resort and Convention
Center and ahead of Gaylord National Resort and Convention
Center.
Colin Reed, chairman and chief executive officer of Ryman
Hospitality Properties, said, “For the past 12 months, we have
talked about the strength in our business and the large group
segment as a whole, where we are seeing increased demand for rooms
and meeting space across our portfolio. At the same time that we
are seeing this increased demand, we are also seeing almost no new
competitive supply of this scale under construction for the
foreseeable future, outside of the Gaylord Hotels brand. We view
this expansion as a perfect opportunity to cement our unique
position in the large group meetings market with a very efficient
use of the company’s capital.”
The meeting space addition includes a new 30,000-square-foot
ballroom, 30,000 square feet of breakout space and approximately
26,000 square feet of carpeted pre-function space. Construction is
expected to begin in the fourth quarter of this year and be
completed during the second quarter of 2018. The project also
includes a $5 million expansion of the property’s resort pool
complex, which is expected to be complete for the 2016 summer
season.
In addition to the expansion, the Company announced preliminary
company-wide bookings and Hospitality Segment performance metrics
highlights for fourth quarter and full year 2015:
- Gross room nights booked in fourth
quarter 2015 increased 12.3 percent, compared to fourth quarter
2014, to approximately 977,000 room nights, which is the best-ever
quarter and December sales production in Company history.
- Gross bookings for full year 2015
increased nearly 3 percent to 2,337,000, compared to full year
2014, which is the best production year in Company history.
- RevPAR increased 9.1 percent for fourth
quarter 2015, compared to fourth quarter 2014, and full year 2015
RevPAR increased 3.7 percent compared to 2014.1
- Total RevPAR increased 5.7 percent for
fourth quarter 2015 compared to fourth quarter 2014, while Total
RevPAR for full year 2015 increased 3.5 percent compared to
2014.1
Reed continued, “Our preliminary full year and fourth quarter
2015 bookings and hospitality metrics are consistent with our
expectations and once again demonstrate the power of our unique
group-centric model, which provides us with the visibility to make
strategic capital decisions that maximize value for our
shareholders.
We decided to preview these results along with our announcement
because they further support our belief that the timing has never
been better for an expansion at Gaylord Texan. The Texan has
witnessed strong growth over the past several years, and this
expansion will allow us to meet significant existing customer
demand for additional high-quality meeting space while also
enabling us to market the Texan to a new group of prospects that
have not been able to come to Grapevine due to their space
requirements.”
The expansion will be tightly integrated into the existing
resort and will benefit from its immense infrastructure and
extensive amenities. The project’s 300 hotel rooms and accompanying
286 square feet of carpeted meeting space per key has a preliminary
total cost per key of $383,000 and will be funded with cash on hand
and borrowings under the Company’s revolving credit facility. In
addition, the City of Grapevine has agreed to rebate $1 million of
the hotel’s rooms tax annually for a ten-year period upon the
completion of the expansion, for a total of $10 million in city
incentives.
Reed continued, “Our company has always enjoyed a strong
relationship with the City of Grapevine and its leaders, who shared
in our vision for Gaylord Texan from day one. We appreciate Mayor
Tate and the City Council’s support on this important step forward
for the Texan and the city of Grapevine.”
William D. Tate, Mayor of Grapevine, Texas, said, “This
investment at Gaylord Texan is also a continued investment in
Grapevine and its citizens. We look forward to its completion and
the additional visitors we will welcome to our great city as a
result.”
In 2007, the Company announced plans to expand Gaylord Texan;
however, these plans were put on hold due to the economic downturn
that occurred in 2008. These plans were fundamentally different
from the current planned expansion, and as a result, the Company
expects that it will recognize in fourth quarter 2015 non-cash
expense of approximately $16.3 million associated with the
write-off of accrued development costs with respect to the
previously planned expansion. The non-cash charge will not affect
fourth quarter or full-year Adjusted EBITDA or AFFO. Subject to our
usual closing and audit procedures for our financial results for
the three months and full year ended December 31, 2015, the Company
believes that its Adjusted EBITDA and AFFO will be within the range
of guidance previously disclosed on November 3, 2015. For a
definition of Adjusted EBITDA and AFFO, see our press release dated
November 3, 2015.
Earnings Call Information
Ryman Hospitality Properties will hold a conference call to
discuss its 2015 fourth quarter and full year results on February
26, 2016 at 10 a.m. ET. Investors can listen to the conference call
over the Internet at www.rymanhp.com. To listen to the live call,
please go to the Investor Relations section of the website
(Investor Relations/Presentations, Earnings and Webcasts) at least
15 minutes prior to the call to register and download any necessary
audio software. For those who cannot listen to the live broadcast,
a replay will be available shortly after the call and will be
available for at least 30 days.
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 7,795 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 90 years; the
Ryman Auditorium, the storied former home of the Grand Ole Opry
located in downtown Nashville; and 650 AM WSM, the Opry’s radio
home. For additional information about Ryman Hospitality
Properties, visit www.rymanhp.com.
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 planned expansion of the Gaylord
Texan, the future performance of our business, estimated capital
expenditures, construction project costs and completion dates,
preliminary operations and financial reporting and other business
or operational issues. These forward-looking statements are subject
to risks and uncertainties that could cause actual results to
differ materially from the statements made. These include the risks
and uncertainties associated with construction projects, schedules,
budgets, and cost estimates, cash flows, the Company’s ability to
borrow funds pursuant to its credit agreement, and the process of
finalizing preliminary financial and operating results. Other
factors that could cause business, 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 (SEC)
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, 2014 and its Quarterly Reports on
Form 10-Q. 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.
Additional Information
The preliminary estimates included in this release represent the
most current information available to management, as our financial
closing procedures for the quarter and full year ended December 31,
2015 are not yet complete. These estimates are not a comprehensive
statement of our financial results for the three months and full
year ended December 31, 2015, and our actual results may differ
materially from these estimates as a result of the completion of
our financial closing procedures, final adjustments and other
developments arising between now and the time that our financial
results for the three months and full year ended December 31, 2015
are finalized. This release (including the preliminary estimates
contained herein) should be read in conjunction with the
consolidated financial statements and notes thereto included in our
most recent Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q. Copies of our reports are available on our website at no
expense at www.rymanhp.com and through the SEC’s Electronic Data
Gathering Analysis and Retrieval System (“EDGAR”) at
www.sec.gov.
Calculation of RevPAR and Total RevPAR
We calculate revenue per available room (“RevPAR”) for our
hotels by dividing room revenue by room nights available to guests
for the period. We calculate total revenue per available room
(“Total RevPAR”) for our hotels by dividing the sum of room
revenue, food & beverage and other ancillary services revenue
by room nights available to guests for the period.
1 RevPAR and Total RevPAR figures are presented on a same-store
basis (excluding the AC Hotel). Calculation of full year percentage
Total RevPAR changes reflects our previously disclosed receipt of
business insurance proceeds in Q3 2015, and calculation of fourth
quarter and full year percentage Total RevPAR changes reflects the
impact of a required accounting change for parking services at our
hotels as of January 1, 2015.
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version on businesswire.com: http://www.businesswire.com/news/home/20160120005837/en/
Investor Relations:Ryman Hospitality Properties, Inc.Mark
Fioravanti, 615-316-6588President and Chief Financial
Officermfioravanti@rymanhp.comorRyman Hospitality Properties,
Inc.Todd Siefert, 615-316-6344Vice President of Corporate Finance
& Treasurertsiefert@rymanhp.comorMedia:Ryman Hospitality
Properties, Inc.Brian Abrahamson, 615-316-6302Vice President of
Corporate Communicationsbabrahamson@rymanhp.comorSloane &
CompanyJosh Hochberg, 212-446-1892jhochberg@sloanepr.comorDan
Zacchei, 212-446-1882dzacchei@sloanepr.com
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