– Net Income Increased 25.9 Percent to $33.6 Million –
– Total Adjusted EBITDA Increased 16.6 Percent to $83.0 Million –
– Recently Announced “Opry City Stage” Concept to Open in Times Square in April 2017–
– Same-Store RevPAR Increased 8.9 Percent, Same-Store Total RevPAR Increased 7.1 Percent –
– Third Quarter Gross Room Nights Booked for All Future Periods Increased 25.4 Percent, a Record for Third Quarter Bookings –
NASHVILLE, Tenn.—-Nov. 1, 2016– 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 reported financial results for the third quarter ended September 30, 2016.
Colin Reed, Chairman and Chief Executive Officer of Ryman Hospitality Properties, said, “We are pleased with the year-over-year results that the Hospitality and Entertainment segments of our business produced in the third quarter, and most notably our 8.9 percent increase in Same-Store RevPAR compared to third quarter 2015.
"Despite recent trends that the hospitality industry as a whole has experienced, such as softening corporate transient demand and pressure from increasing hotel supply, our Hospitality segment delivered solid third quarter results. Third quarter gross room night production increased by 25.4 percent, a record for the brand, providing additional evidence to support the thesis that our assets are positioned to benefit from the long-term growth trends that exist in the large 1,000-plus room group meeting segment in the coming years.
"Lastly, we are very excited about our recently announced joint venture that will bring country music’s most famous brand to the heart of Times Square in April 2017. Opry City Stage’s four-stories of country music entertainment and restaurant dining represents a key piece of our strategy for the growth of the Opry brand as we seek to expand our Entertainment business and promote interest in our Nashville-based assets. We believe this concept has significant long-term growth potential through expansion opportunities in other major metropolitan destinations across the globe, and we look forward to further developing it over the next few years.”
Third Quarter and Year-to-Date 2016 Results (As Compared to Third Quarter and Year-to-Date 2015) Included the Following:
($ in thousands, except per share amounts, RevPAR and Total RevPAR)
Three Months Ended Nine Months Ended Sep 30, Sep 30, 2016 2015 % ∆ 2016
2015
% ∆ Total Revenue $ 271,720 $ 252,820 7.5% $ 829,432 $ 780,004 6.3% Operating Income $ 46,567 $ 32,768 42.1% $ 152,306 $ 125,673 21.2% Operating Income Margin 17.1% 13.0% 4.1pt 18.4% 16.1% 2.3pt Net Income (1) $ 33,593 $ 26,691 25.9% $ 111,270 $ 72,612 53.2% Net Income Margin (1) 12.4% 10.6% 1.8pt 13.4% 9.3% 4.1pt Net Income per diluted share (1) $ 0.66 $ 0.52 26.9% $ 2.17 $ 1.41 53.9% Adjusted EBITDA $ 83,046 $ 71,193 16.6% $ 255,520 $ 236,770 7.9% Adjusted EBITDA Margin 30.6% 28.2% 2.4pt 30.8% 30.4% 0.4pt Same-Store Hospitality Revenue (2) $ 238,421 $ 222,335 7.2% $ 740,107 $ 702,311 5.4% Same-Store Hospitality RevPAR (2) $ 132.50 $ 121.72 8.9% $ 136.43 $ 130.22 4.8% Same-Store Hospitality Total RevPAR (2) $ 319.48 $ 298.43 7.1% $ 333.23 $ 317.68 4.9% Same-Store Hospitality Operating Income (2) $ 45,252 $ 33,406 35.5% $ 152,734 $ 128,995 18.4% Same-Store Hospitality Operating Income Margin (2) 19.0% 15.0% 4.0pt 20.6% 18.4% 2.2pt Same-Store Hospitality Adjusted EBITDA (2) $ 76,126 $ 66,235 14.9% $ 242,342 $ 226,113 7.2% Same-Store Hospitality Adjusted EBITDA Margin (2) 31.9% 29.8% 2.1pt 32.7% 32.2% 0.5pt Funds From Operations (FFO) $ 60,315 $ 55,189 9.3% $ 193,195 $ 158,079 22.2% FFO per diluted share $ 1.18 $ 1.07 10.3% $ 3.77 $ 3.06 23.2% Adjusted FFO (3) $ 65,618 $ 53,814 21.9% $ 203,754 $ 187,775 8.5% Adjusted FFO per diluted share $ 1.28 $ 1.04 23.1% $ 3.97 $ 3.64 9.1% (1) Net income for nine months ended September 30, 2016 includes a loss of $2.1 million on joint ventures. Net income for nine months ended September 30, 2015 includes an impairment charge of $2.9 million and a loss of $20.2 million on warrant settlements associated with our previous convertible notes. (2) Same-Store Hospitality excludes the AC Hotel at National Harbor, which opened in April 2015. (3) Adjusted FFO for both periods is presented using the 2016 definition of Adjusted FFO contained in this release.
For the Company’s definitions of RevPAR, Total RevPAR, Operating Income Margin, Net Income Margin, Adjusted EBITDA, Adjusted EBITDA Margin, FFO, and Adjusted FFO, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net Income and a reconciliation of the non-GAAP financial measure Adjusted FFO to Net Income, see “Calculation of RevPAR and Total RevPAR,” “Calculation of GAAP Margin Figures,” “Non-GAAP Financial Measures,” “Adjusted EBITDA Definition,” “Adjusted EBITDA Margin Definition,” “Adjusted FFO Definition” and “Supplemental Financial Results” below. Adjusted FFO for 2015 presented herein also reflects the Adjusted FFO definition used for 2016.
Operating Results
Hospitality Segment
($ in thousands, except ADR, RevPAR and Total RevPAR)
For the three months and nine months ended September 30, 2016 and 2015, the Company reported the following:
Three Months Ended Nine Months Ended Sep 30, Sep 30, 2016 2015 % ∆ 2016 2015 % ∆
Hospitality Results
Hospitality Revenue $ 241,019 $ 224,842 7.2% $ 747,539 $ 707,131 5.7% Hospitality Operating Income $ 45,718 $ 33,903 34.8% $ 154,195 $ 129,309 19.2% Hospitality Operating Income Margin 19.0% 15.1% 3.9pt 20.6% 18.3% 2.3pt Hospitality Adjusted EBITDA $ 76,908 $ 67,140 14.5% $ 244,751 $ 228,050 7.3% Hospitality Adjusted EBITDA Margin 31.9% 29.9% 2.0pt 32.7% 32.3% 0.4pt Hospitality Performance Metrics Occupancy 75.5% 71.9% 3.6pt 74.6% 72.7% 1.9pt Average Daily Rate (ADR) $ 175.22 $ 169.24 3.5% $ 182.46 $ 178.88 2.0% RevPAR $ 132.32 $ 121.71 8.7% $ 136.08 $ 130.07 4.6% Total RevPAR $ 315.50 $ 294.81 7.0% $ 328.79 $ 314.88 4.4% Gross Definite Rooms Nights Booked 606,960 484,143 25.4% 1,597,619 1,359,678 17.5% Net Definite Rooms Nights Booked 502,564 396,810 26.7% 1,251,086 1,062,298 17.8% Group Attrition (as % of contracted block) 13.4% 13.7% -0.3pt 12.4% 12.8% -0.4pt Cancellations ITYFTY (1) 6,871 9,186 (25.2%) 35,383 27,262 29.8% Same-Store Hospitality Results (2) Same-Store Hospitality Revenue $ 238,421 $ 222,335 7.2% $ 740,107 $ 702,311 5.4% Same-Store Hospitality Operating Income $ 45,252 $ 33,406 35.5% $ 152,734 $ 128,995 18.4% Same-Store Hospitality Operating Income Margin 19.0% 15.0% 4.0pt 20.6% 18.4% 2.2pt Same-Store Hospitality Adjusted EBITDA $ 76,126 $ 66,235 14.9% $ 242,342 $ 226,113 7.2% Same-Store Hospitality Adjusted EBITDA Margin 31.9% 29.8% 2.1pt 32.7% 32.2% 0.5pt Same-Store Hospitality Performance Metrics Occupancy 75.6% 72.1% 3.5pt 74.8% 72.9% 1.9pt Average Daily Rate (ADR) $ 175.24 $ 168.83 3.8% $ 182.47 $ 178.61 2.2% RevPAR $ 132.50 $ 121.72 8.9% $ 136.43 $ 130.22 4.8% Total RevPAR $ 319.48 $ 298.43 7.1% $ 333.23 $ 317.68 4.9% (1) "ITYFTY" represents In The Year For The Year. (2) Same-Store Hospitality excludes the AC Hotel at National Harbor, which opened in April 2015.
Property-level results and operating metrics for third quarter 2016 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDA Reconciliations,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDA to Hospitality Operating Income, Same-Store Hospitality Adjusted EBITDA to Same-Store Hospitality Operating Income, and property-level Adjusted EBITDA to property-level Operating Income for each of the hotel properties. Highlights for third quarter 2016 for the Hospitality segment and at each property include:
- Hospitality Segment (Same-Store): Total revenue increased 7.2 percent to $238.4 million in third quarter 2016 compared to third quarter 2015. RevPAR increased 8.9 percent, driven by a 3.5 percentage point increase in occupancy and a 3.8 percent increase in ADR. Operating Income increased 35.5 percent to $45.3 million in third quarter 2016 compared to third quarter 2015. Operating Income Margin improved 400 basis points to 19.0 percent. Adjusted EBITDA increased 14.9 percent, as compared to third quarter 2015, to $76.1 million. Adjusted EBITDA Margin improved 210 basis points to 31.9 percent.
- Gaylord Opryland: Total revenue for third quarter 2016 increased 3.2 percent to $78.8 million compared to third quarter 2015, driven by strong ADR growth of 9.2 percent and a 1.6 percentage point increase in occupancy. There were approximately 19,700 room nights out of service during the third quarter of 2016 due to a planned rooms renovation, compared to approximately 18,000 room nights out of service over the same period in 2015. Operating Income increased 26.5 percent to $21.7 million in third quarter 2016 compared to third quarter 2015. Operating Income Margin improved 510 basis points to 27.5 percent, driven primarily by the 9.2 percent increase in ADR. Adjusted EBITDA increased 17.4 percent, as compared to third quarter 2015, to $29.1 million, and Adjusted EBITDA Margin improved 440 basis points to 36.9 percent, driven primarily by the 9.2 percent increase in ADR. Operating performance this quarter was driven by combination of a 9.2 percent increase in ADR, favorable utilities expense, higher attrition and cancellation fee collections, and solid expense management as compared to third quarter 2015.
- Gaylord Palms: Total revenue for third quarter 2016 increased 33.3 percent to $42.2 million compared to third quarter 2015, driven by an 8.7 percentage point increase in occupancy led by higher group room nights, transient ADR growth and increased banquet revenue. Operating Income increased 734.7 percent to $4.7 million in third quarter 2016 compared to third quarter 2015. Operating Income Margin improved 1,350 basis points to 11.2 percent. Adjusted EBITDA increased 108.2 percent to $10.8 million compared to third quarter 2015, and Adjusted EBITDA Margin improved 920 basis points to 25.6 percent. The shift in the Jewish holiday schedule negatively affected occupancy in third quarter 2015. Third quarter 2016 performance was aided by a $1.2 million group contract settlement that was received in third quarter 2016.
- Gaylord Texan: Total revenue for third quarter 2016 increased 4.5 percent to $52.5 million compared to third quarter 2015, due to a 4.9 percentage point increase in occupancy that was driven by an increase in association room nights. Operating Income increased 2.1 percent to $11.8 million in third quarter 2016 compared to third quarter 2015. Operating Income Margin decreased 50 basis points to 22.5 percent. Adjusted EBITDA increased 2.0 percent to $16.8 million compared to third quarter 2015. Adjusted EBITDA Margin decreased 80 basis points to 32.1 percent. Flow-through in the third quarter 2016 was negatively impacted by increased sales expense related to record advance group bookings production, the timing of marketing expenses, customer site visits related to the hotel expansion and a year-over-year increase in property taxes.
- Gaylord National: Total revenue for third quarter 2016 increased 1.1 percent to $61.0 million, driven by a 1.8 percentage point increase in occupancy resulting from an increase in association and transient room nights. Operating Income increased 31.3 percent to $6.2 million in third quarter 2016 compared to third quarter 2015. Operating Income Margin improved 230 basis points to 10.2 percent. Adjusted EBITDA decreased 2.6 percent to $18.2 million, as compared to third quarter 2015. Adjusted EBITDA Margin decreased 120 basis points to 29.8 percent. Lower ADR, increased sales expense related to record advance group bookings, and the timing of certain marketing expenses negatively impacted flow-through during third quarter 2016.
Reed continued, “Overall our hotels had a very good quarter driven by solid occupancy and rate growth. Despite some year-over-year increases in sales and marketing costs that impacted flow-through, our Hospitality segment continues to demonstrate strong top-and-bottom-line growth. We view the increased bookings-related sales and marketing costs in the third quarter 2016 as a ‘good problem to have’ as it is a result of a record bookings quarter, which sets us up well for the years ahead. Progress continues on the more than $250 million in capital project investments we are making in 2016 and 2017, including our property expansions, ongoing rooms renovations, as well as the construction of Gaylord Rockies, which we believe puts us in an ideal position to drive growth going forward.”
To view full financial release and corresponding tables please click the PDF icon or visit: http://ir.rymanhp.com/phoenix.zhtml?c=72635&p=irol-newsArticle&ID=2217907
