Ryman Hospitality Properties, Inc. (NYSE: RHP) today shared the
following business updates:
Opening of Gaylord Rockies Resort &
Convention Center
The 1,501-room Gaylord Rockies Resort &
Convention Center opened for business on December 18, 2018.
Gaylord Rockies, the fifth Gaylord Hotels property, occupies
an 85-acre site and offers more than 486,000 square feet of meeting
and convention space and extensive indoor/outdoor recreational
facilities. A gateway to the Rockies, the resort is just 10 minutes
from the Denver International Airport and authentically captures a
local sense of the surrounding area with its interior design and
décor modeled after Colorado’s iconic scenery and rich history.
Reflecting the resort’s “everything in one place” approach, on site
are eight dining options, including Gaylord Hotels’ signature Old
Hickory Steakhouse as well as the Mountain Pass Sports Bar, the
Relache Spa and Salon and a state-of-the-art fitness center.
Colin Reed, chairman and chief executive officer
of Ryman Hospitality Properties said, “Tuesday’s opening of Gaylord
Rockies Resort & Convention Center was a milestone moment for
our Company, the Gaylord Hotels brand and the state of Colorado.
This hotel opened its doors with 1.1 million room nights on the
books for all future years. With 50 points of occupancy on the
books for 2019 and already approximately 55 points of occupancy on
the books for 2020, as of November 30, 2018, we could not be more
pleased with the early response to this newest addition to the
Gaylord Hotels brand.”
In September, the Company announced that it had
agreed to a transaction to increase its ownership stake in the
joint venture that owns Gaylord Rockies from 35 percent to
approximately 62 percent. The Company anticipates the transaction
will close by the end of 2018. Upon completion of the transaction,
the Company will become the majority owner and managing member of
the Gaylord Rockies joint venture.
The Company anticipates that, as a result of its
completion of the transaction increasing its ownership in the joint
venture, it will recognize a gain related to its pre-existing
equity method investment in the range of $120 million to $140
million. Although such gain will increase net income for 2018, it
will not have any impact on Adjusted EBITDA or Adjusted Funds from
Operations for 2018.
Indoor Portion of SoundWaves at Gaylord
Opryland Resort & Convention Center Opens
The Company is pleased to announce that the
111,000-square-foot indoor portion of SoundWaves, Gaylord
Opryland’s upscale water experience, opened for business on
December 1, 2018. Guests of SoundWaves can enjoy three levels of
water attractions and activities, including a double FlowRider,
rapid and lazy rivers and exclusive amenities for guests over the
age of 18. The 106,000-square-foot outdoor area is expected to open
in time for the 2019 summer season.
Reed continued, “We are pleased with the early
response from our first visitors to SoundWaves, as well as the
initial interest we have received from our group customers. We
believe SoundWaves is well on its way to becoming a must-visit
attraction for groups, families and adult leisure guests looking
for upscale recreation options in Nashville.”
Permanent Closure of Opry City Stage Venue
The Company also announced today that it will
permanently cease operations at its Opry City Stage location at
1604 Broadway in New York City.
Reed continued, “In September, we announced our
plans to suspend operations at Opry City Stage as we evaluated the
venue’s ground floor experience and operations. This evaluation is
now complete, and we have determined that the costs associated with
repositioning this venue do not represent a prudent long-term use
of the Company’s capital. We remain excited about the other growth
opportunities that exist within our Entertainment segment, and this
decision allows us to focus our efforts on those
opportunities.”
The Company expects to incur an impairment
charge in the range of $15 million to $22 million in connection
with the decision to permanently close the venue. Although such
impairment charge will decrease net income for 2018, it will not
have any impact on Adjusted EBITDA or Adjusted Funds from
Operations.
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. The Company is a joint venture owner of the
1,501-room Gaylord Rockies Resort & Convention Center, which is
also managed by Marriott International, Inc. 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; and Ole Red, a country lifestyle
and entertainment brand. 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 such statements include,
but are not limited to, statements regarding the consummation of
the proposed transaction, the Company’s role with the joint venture
that owns the Gaylord Rockies upon consummation of the proposed
transaction, and the expected gain related to the Company’s
pre-existing equity method investment as a result of the
consummation of the proposed transaction. 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 the 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.
Adjusted EBITDA Definition
To calculate Adjusted EBITDA, we first determine
Operating Income, which represents Net Income (loss) determined in
accordance with GAAP, plus, loss (income) from discontinued
operations, net; provision (benefit) for income taxes; other
(gains) and losses, net; loss on extinguishment of debt; (gain)
loss from joint ventures; and interest expense, net. Adjusted
EBITDA is then calculated as Operating Income, plus, depreciation
and amortization; preopening costs; non-cash ground lease expense;
equity-based compensation expense; impairment charges; any closing
costs of completed acquisitions; interest income on Gaylord
National bonds; other gains and (losses), net; (gains) losses on
warrant settlements; pension settlement charges; pro rata Adjusted
EBITDA from joint ventures, (gains) losses on the disposal of
assets, and any other adjustments we have identified in this
release. We believe Adjusted EBITDA is useful to investors in
evaluating our operating performance because this measure helps
investors evaluate and compare the results of our operations from
period to period by removing the impact of our capital structure
(primarily interest expense) and our asset base (primarily
depreciation and amortization) from our operating results.
Adjusted FFO Definition
We calculate Adjusted FFO to mean Net Income
(loss) (computed in accordance with GAAP), excluding,
non-controlling interests, and (gains) and losses from sales of
property; depreciation and amortization (excluding amortization of
deferred financing costs and debt discounts) and certain pro rata
adjustments from joint ventures (which equals FFO). We then exclude
impairment charges; write-offs of deferred financing costs,
non-cash ground lease expense, amortization of debt discounts and
amortization of deferred financing cost, pension settlement
charges, additional pro rata adjustments from joint ventures,
(gains) losses on other assets, (gains) losses on extinguishment of
debt and warrant settlements, the impact of deferred income tax
expense (benefit), and any other adjustments we have identified in
this release. We believe that the presentation of Adjusted FFO
provides useful information to investors regarding the performance
of our ongoing operations because it is a measure of our operations
without regard to specified non-cash items such as real estate
depreciation and amortization, gain or loss on sale of assets and
certain other items which we believe are not indicative of the
performance of our underlying hotel properties. We believe that
these items are more representative of our asset base than our
ongoing operations. We also use Adjusted FFO as one measure in
determining our results after taking into account the impact of our
capital structure.
We caution investors that amounts presented in
accordance with our definitions of Adjusted EBITDA and Adjusted FFO
may not be comparable to similar measures disclosed by other
companies, because not all companies calculate these non-GAAP
measures in the same manner. Adjusted EBITDA and Adjusted FFO, and
any related per share measures, should not be considered as
alternative measures of our Net Income (loss), operating
performance, cash flow or liquidity. Adjusted EBITDA and Adjusted
FFO may include funds that may not be available for our
discretionary use due to functional requirements to conserve funds
for capital expenditures and property acquisitions and other
commitments and uncertainties. Although we believe that Adjusted
EBITDA and Adjusted FFO can enhance an investor’s understanding of
our results of operations, these non-GAAP financial measures, when
viewed individually, are not necessarily better indicators of any
trend as compared to GAAP measures such as Net Income (loss),
Operating Income (loss) or cash flow from operations. In addition,
you should be aware that adverse economic and market and other
conditions may harm our cash flow.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President and Chief Financial Officer |
Shannon Sullivan, Vice President of Corporate and 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 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.comsam.gibbons@alpha-ir.com |
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