Ryman Hospitality Properties, Inc. (NYSE: RHP) (the “Company”)
today provided the following update on the impact of COVID-19:
Business Update
Colin Reed, Chairman and Chief Executive Officer of the Company,
said, “We continue to work closely with our hotel operator,
Marriott, and with local and state health authorities to monitor
the COVID-19 pandemic. At this time, we do not anticipate resuming
operations at the five hotels that comprise the Gaylord Hotels
convention network prior to May 31, 2020. This decision remains
subject to change as the situation evolves, and we will update
investors as appropriate if state and local guidelines are modified
and conditions for reopening materialize at an earlier date for one
or more of our Gaylord Hotels. Our smaller hotels, the Inn at
Opryland and the AC National Harbor, as well as the Gaylord Springs
golf course, remain operational, and we currently have no plans to
temporarily close these businesses.
“Over the years, the Gaylord Hotels brand has built strong
relationships with its group customers. As the COVID-19 crisis
began to unfold and government restrictions began to emerge, we
made the strategic decision to avoid irreparably harming those
relationships by aggressively pursuing the collection of
cancellation fees. Instead, we are working cooperatively with our
group customers to rebook their cancelled business. To manage the
volume of rebooking opportunities created by this crisis, the
majority of the Gaylord Hotels sales force was retained. We are
encouraged by their success in the first five weeks of the
rebooking effort.
“Through April 22, 2020, we have experienced total attrition and
cancellations of approximately 861,000 net room nights,
representing approximately $402 million of total revenue (with
approximately 80% of these cancelled group nights for arrival dates
from February-June 2020). Through April 22, 2020, we have
successfully rebooked approximately 110,000 group room nights,
representing approximately $50 million in total revenue. Of these
rebooked room nights, approximately 40% are scheduled for arrival
in the second half of 2020, and approximately 10% are scheduled for
arrival during 2021.
“In addition to rebookings, meeting planners are continuing to
plan and book new meetings for the second half of 2020 and beyond.
Although first quarter 2020 gross advance bookings declined year
over year by approximately 107,000 room nights to 289,000 total
room nights, new gross advance bookings for the month of March were
126,000 room nights, with COVID-19 rebookings accounting for
approximately 29,000 room nights in March and first quarter 2020.
We are encouraged that meeting planners are contracting new
business for future dates during this crisis. Additionally, after
excluding approximately 500,000 room nights of COVID-19 rebooking
leads, Gaylord Hotels still generated approximately 3.9 million
room nights of leads for all future years, during March 2020.
Reed continued, “Our managed assets (the Grand Ole Opry, Ryman
Auditorium and our Ole Red entertainment venues), as well as the
Wildhorse Saloon and General Jackson (which are managed by
Marriott), remain closed through at least the end of April. We are
monitoring local and state health guidelines for each of the
markets in which we operate and look forward to re-opening these
venues as soon as is possible, given local market conditions.”
Credit Facility Amendment
On April 23, 2020, the Company completed an amendment to the
credit agreement governing its $700 million revolving credit
facility, $300 million Term Loan A facility and the original $500
million Term Loan B facility (of which approximately $385 million
is outstanding), which was obtained from a consortium of banks led
by Wells Fargo Bank, N.A., as administrative agent. The amendment
provides for a temporary waiver of all financial covenants in the
credit facility through March 31, 2021 (unless terminated early by
the Company at its option) and confirms the availability of the
remaining approximately $300 million of undrawn amounts under the
revolving credit facility. During the waiver period, the amendment
provides for increased interest on outstanding amounts due under
the revolving credit facility and the Term Loan A facility,
additional restrictions on debt, investments, dividends, share
repurchases and certain capital expenditures, and a minimum
liquidity requirement. In addition, all borrowings under the
revolving credit facility made during the waiver period may only be
used for payment of operating expenses, debt service, and permitted
capital expenditures and investments.
Reed continued, “The temporary waiver of financial covenants
provides the additional financial and operational flexibility that
is critical during this period of uncertainty. We appreciate the
continued support from our long-tenured bank group during this
unprecedented time, as well as the recognition of the value of our
one-of-a-kind portfolio of hotel assets. Together with our
unrestricted cash on hand and the remaining availability under our
revolving credit facility, we believe we will have ample liquidity
to weather this extended period of disruption.”
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 anticipated impact of
COVID-19 on our results of operations, the amount and collection of
cancellation and attrition fees, cost containment efforts, and our
plans to assess the re-opening of our Gaylord Hotels properties and
other assets when the COVID-19 pandemic subsides. 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 pandemic on us and the
hospitality and entertainment industries generally; the effects of
the COVID-19 pandemic on the demand for travel, transient and group
business (including government-imposed restrictions); levels of
consumer confidence in the safety of travel and group gathering as
a result of COVID-19; the length and severity of the COVID-19
pandemic in the United States and the pace of recovery following
the COVID-19 pandemic; the length and severity of the COVID-19
pandemic in the markets where our assets are located; 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, Senior 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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