Ryman Hospitality Properties, Inc. Provides Update on Impact of Coronavirus; Withdraws Full-Year 2020 Business Outlook
March 08 2020 - 5:09PM
Ryman Hospitality Properties, Inc. (NYSE: RHP) (the “Company”)
today provided the following update on the impact of the COVID-19
virus:
Colin Reed, Chairman and Chief Executive Officer of the Company,
said, “We have been closely monitoring the impact of COVID-19. We,
along with our hotel manager, Marriott, remain in close contact
with local and national health authorities and have elevated the
cleaning and sanitation procedures at our properties.
“During the investor conferences the Company attended early last
week, we indicated that our hospitality business had incurred
approximately 14,000 cancelled net room nights which we believed
were attributable to COVID-19. During the course of the last
week, our hospitality business has witnessed an increase in group
room night attrition and cancellations which we believe also are
attributable to COVID-19. For the week ended March 7, 2020, our
hospitality business experienced total attrition and cancellations
of approximately 77,000 net room nights (which is inclusive of the
14,000 net room nights described above), representing approximately
$40 million of revenue. Approximately 75% of this impact is for
March 2020 and approximately 25% is for April 2020.
“Our group-centric business model, in which approximately
70% of total room nights occupied in any given year is in the form
of contracted group business, provides a measure of profitability
protection in the face of increased levels of attrition and
cancellation. In this regard, the estimated amount of
attrition and cancellation fees owed to the Company for the
attrited/cancelled groups is approximately $19 million. Several
groups who have cancelled their event have expressed a desire to
rebook their event later this year at one of our hotel properties.
In addition, we are working with Marriott to implement cost
containment strategies at each of our properties to reduce
operating expenses in light of the short-term revenue losses we are
experiencing.
“To put these attrition and cancellation figures in context, the
typical volume of attrition and cancellations in the first quarter
of a given year (based on a three-year average and excluding the
Gaylord Rockies) is approximately 18,000 net room nights. In
addition, the volume of attrition and cancellations in the first
quarter of 2009 during the height of the global financial crisis,
the highest quarterly level in our history, was approximately
122,000 net room nights, and for full year 2009 the total volume of
attrition and cancellation was approximately 250,000 net room
nights.
“While the Company currently maintains a strong level of
contracted group bookings for the May to December period, and
the levels of attrition and cancellation incurred to date
would not result in our failure to achieve our previously provided
full-year Total RevPAR and Hospitality Adjusted EBITDAre guidance,
the recent pace of cancellation activity associated with COVID-19
creates a great deal of uncertainty regarding our operating
performance for the remainder of 2020. Therefore, the Company is
not able to accurately assess the potential impact on its full-year
operating results. Given this rapidly evolving environment, the
Company’s full business performance outlook for 2020 previously
provided on February 25, 2020 is withdrawn, and investors should no
longer rely upon this guidance.
“While current uncertainty has resulted in some meeting planners
altering their commitments in the short term, we have seen little
to no change in our hospitality segment’s leisure business or in
the volume of business at our entertainment segment’s venues to
date.
Mr. Reed concluded, “We intend to provide periodic updates on
the impact of COVID-19 based on the information available to us at
that time.”
About Ryman Hospitality Properties,
Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP) is a leading
lodging and hospitality real estate investment trust that
specializes in upscale convention center resorts and country music
entertainment experiences. The Company’s core holdings* include a
network of five of the top 10 largest non-gaming convention center
hotels in the United States based on total indoor meeting space.
These convention center resorts operate under the Gaylord Hotels
brand and are managed by Marriott International. The Company also
owns two adjacent ancillary hotels and a small number of
attractions managed by Marriott International for a combined total
of 10,110 rooms and more than 2.7 million square feet of total
indoor and outdoor meeting space in top convention and leisure
destinations across the country. The Company’s Entertainment
segment includes a growing collection of iconic and emerging
country music brands, including the Grand Ole Opry; Ryman
Auditorium, WSM 650 AM; Ole Red and Circle, a country lifestyle
media network the Company owns in a joint-venture partnership with
Gray Television. The Company operates its Entertainment segment as
part of a taxable REIT subsidiary.
*The Company is the sole owner of Gaylord Opryland Resort &
Convention Center; Gaylord Palms Resort & Convention Center;
Gaylord Texan Resort & Convention Center; and Gaylord National
Resort & Convention Center. It is the majority owner and
managing member of the joint venture that owns Gaylord Rockies
Resort & Convention Center.
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 anticipated impact of the COVID-19
outbreak on travel, transient and group demand, the anticipated
impact of such outbreak on our results of operations, the amount of
cancellation and attrition fees and cost containment efforts. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These risks and uncertainties include, but are not
limited to, the effects of the COVID-19 outbreak, including on the
demand for travel, transient and group business (including
government-imposed travel or meeting restrictions), and levels of
consumer confidence in the safety of travel as a result of the
outbreak; the length of the COVID-19 outbreak and severity of such
outbreak in the United States; the pace of recovery following the
COVID-19 outbreak; our ability to implement cost containment
strategies; and the adverse effects of the COVID-19 outbreak on our
business or the market price of our common stock. Other factors
that could cause 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, 2019 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.
Source: Ryman Hospitality Properties, Inc.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President & Chief Financial Officer |
Shannon Sullivan, Vice President 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 |
Ryman Hospitality Properties, Inc. |
Alpha IR Group |
(615) 316-6344 |
(929) 266-6315 |
tsiefert@rymanhp.com |
robert.winters@alpha-ir.com |
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