RYMAN HOSPITALITY PROPERTIES, INC. PROVIDES ADDITIONAL UPDATE ON IMPACT OF CORONAVIRUS
March 15 2020 - 2:00PM
hareholders informed, we have outlined below the most recent
impacts and actions we are taking with regards to COVID-19.
“For the two weeks ended March 14, 2020, our hospitality
business has experienced total attrition and cancellations of
approximately 268,000 net room nights (which is inclusive of the
net room nights disclosed in our March 8, 2020 release),
representing approximately $132 million of revenue. This represents
approximately seven annual occupancy points, or approximately 16%,
of the contracted group room nights for the March through December
time period on the books as of January 1, 2020. Approximately 55%
of this impact is for March 2020, approximately 34% is for April
2020 and approximately 11% is for May-July 2020. The total
estimated amount of attrition and cancellation fees currently owed
to the Company for the attrited/cancelled groups is approximately
$63 million. In addition, we have seen decreased levels of
booking pace in our hospitality segment’s leisure business for the
remainder of March.
“In light of the decreased occupancy levels we expect over the
coming weeks, we have been working closely with our operator,
Marriott, to implement aggressive cost reduction and capital
preservation initiatives across our hotel portfolio. We have
significantly reduced expense levels at each of our properties by
closing portions of the hotel to match expected occupancy. Salaried
employees at each hotel are now performing functions normally
performed by hourly and part-time staff, and the hotels are
utilizing reduced levels of hourly and part-time staffing to match
expected occupancy.
“As in previous periods of elevated group cancellations and
attrition, we are cooperating with Marriott and our group customers
to accommodate re-bookings, including applying all or a portion of
the fees owed as either an advance deposit or credit for a future
meeting at one of our hotel properties. To provide some
historic context, in the 2009 economic downturn, we collected
approximately 60% of cancellation and attrition fees owed in cash,
approximately 30% were collected as advanced deposits or credits
for a future meeting, and approximately 10% were
uncollectable. Our ability to ultimately recover such fees
depends on a number of factors, including each customer’s financial
status, their willingness to rebook at our hotel properties,
patterns of availability, and the actions of governmental
authorities to limit or otherwise restrict meetings or other
gatherings over a certain size. When applicable, we will pursue
claims available under our business interruption coverage, but
given the nature of this pandemic, the pooled nature of coverage
available to our hospitality business, and the applicable
sub-limits and other coverage terms under these policies, we do not
anticipate material recoveries from business interruption
insurance.
Mr. Reed continued, “On Friday, we announced that we would
temporarily suspend publicly attended performances of the Grand Ole
Opry through April 4, 2020. We also announced that all concerts
scheduled at the Ryman Auditorium have been postponed or cancelled
through April 4, 2020, and we are currently working with show
promoters to reschedule these events. The Ryman Auditorium plans to
remain open to the public for tours. We plan to operate our Ole Red
entertainment venues with regular business hours. We have delayed
the opening of our Ole Red Orlando venue, which had been scheduled
for April 14, 2020. We have also undertaken aggressive
measures in our entertainment business and corporate functions to
reduce operating costs and preserve capital during this period of
disruption.
“Our Company enters this challenging time on solid
footing. Through the end of February 2020 our operating
results exceeded our expectations and were significantly ahead of
prior year results, both in terms of revenue and
profitability. In addition, our liquidity position remains
strong and is supported by commitments from a group of banks with
which we have had long-standing relationships. We currently have
approximately $285 million of available cash and $700 million of
availability under our revolving credit facility.
Mr. Reed concluded, “In addition to the interests of our
shareholders, the well-being of our employees, the hotel personnel
employed by Marriott, our guests and our artist partners is a
priority, and we will continue making decisions with these
priorities in mind. We are working hard to manage our
business during this challenging time. We will continue to
update our shareholders on the impact of COVID-19 periodically
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 COVID-19 on
travel, transient and group demand, the suspension or cancellation
of performances or operations at our entertainment venues, the
anticipated impact of COVID-19 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 COVID-19, 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 and group gatherings as
a result of COVID-19; the length and severity of the COVID-19
pandemic in the United States; the pace of recovery following the
COVID-19 pandemic; our ability to implement cost containment
strategies; and the adverse effects of COVID-19 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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