Ryman Hospitality Properties, Inc. Reports Fourth Quarter and Full Year 2022 Results

Ryman Hospitality Properties, Inc.

NASHVILLE, Tenn., Feb. 23, 2023 (GLOBE NEWSWIRE) -- Ryman Hospitality Properties, Inc. (NYSE: RHP), a leading lodging and hospitality real estate investment trust (“REIT”) that specializes in upscale convention center resorts and leading entertainment experiences, today reported financial results for the three months and year ended December 31, 2022.

Fourth Quarter 2022 Highlights and Recent Developments:

• The Company generated net income of $61.4 million and net income available to common shareholders of $58.1 million or $1.03 per diluted share, which represents an increase of 28.4% compared to net income available to common shareholders for Q3 2022, achieving three consecutive quarters of profitability.

• Despite 3.0 fewer points of occupancy compared to Q4 2019, the Company’s Hospitality segment achieved revenue of $484.5 million, a record for any quarter, driven by continued strength in leisure room rate, which was aided by the return of holiday ICE! programming.

• The Hospitality segment reported a record for any fourth quarter in operating income of $105.8 million and Adjusted EBITDAre of $150.7 million.

• Achieved an all-time record in total RevPAR of almost $506, an increase of 49.9% compared to Q4 2021.

• During the fourth quarter, the Company booked over 1 million Gross Definite Room Nights for all future years, at an ADR of nearly $254, an increase of 11.0% over Q4 2021 ADR for future bookings.

• The Company declared its first quarter 2023 dividend of $0.75 per share; intends to pay aggregate minimum dividends for 2023 of $3.00 per share subject to the Board’s future determinations.

Full Year 2022 Highlights:

• Reported consolidated revenue of $1.8 billion, an all-time record for the Company.

• The Company reported a full year record in operating income of $327.2 million and reported operating income margin of 18.1% in 2022.

• Net income available to common shareholders was $129.0 million in 2022, as compared to a net loss available to common shareholders of $177.0 million in 2021.

• The Company reported healthy net income of $134.9 million in 2022, and a record Adjusted EBITDAre of $555.9 million.

• Gross Definite Room Nights Booked in full year 2022 of nearly 2.7 million room nights for all future years, represents a 6.8% increase over 2021.
  

Colin Reed, Executive Chairman of Ryman Hospitality Properties, said, “In the early days of the pandemic we signaled that we would act as we have in the past when faced with unexpected challenges – by investing in our people and our business. Since the beginning of 2020, we have strategically invested over half a billion dollars to expand the Gaylord Palms, renovate the rooms and upgrade the food & beverage outlets at the Gaylord National, fully acquire Gaylord Rockies, broaden our reach on the entertainment side of our business and upgrade the guest experience across our portfolio. The strength of our fourth quarter and full year 2022 results supports our investment thesis and underscores the power of these unique assets to attract and retain loyal customers.”

Mark Fioravanti, President and Chief Executive Officer of the Company, added, “Our strong full year results were achieved despite the omicron variant’s impact on our financial results in the first quarter of 2022. The robust return of our core convention customers and the continued strength in our leisure business during the remaining three quarters drove healthy net income and generated record revenue, operating income and Adjusted EBITDAre for the year. Our Gaylord Hotels delivered a tremendous holiday season, aided by the return of ICE! programming for the first time since 2019. We continue to believe that our hotels offer a one-of-a-kind holiday experience through our exclusive programming and amenities, setting us apart from our competition and ensuring a more memorable and enjoyable stay for our leisure guests, which contributed to all-time total revenue, operating income, and Adjusted EBITDAre records in the fourth quarter for the brand.”

Fourth Quarter and Full Year 2022 Results (as compared to Fourth Quarter and Full Year 2021):

($ in thousands, except per share amounts)	Three Months Ended							Twelve Months Ended
	December 31,							December 31,
	2022		2021		% ∆			2022		2021		% ∆
Total Revenue	$568,875		$377,431		50.7%			$1,805,969		$939,373		92.3%
Operating income (loss)	$116,303		$26,134		345.0%			$327,150		($58,675)		657.6%
Operating income (loss) margin	20.4%		6.9%		13.5pt			18.1%		-6.2%		24.3pt
Net income (loss)	$61,370		($6,024)		1118.8%			$134,948		($194,801)		169.3%
Net income (loss) margin	10.8%		-1.6%		12.4pt			7.5%		-20.7%		28.2pt
Net income (loss) available to common shareholders	$58,089		($5,980)		1071.4%			$128,993		($176,966)		172.9%
Net income (loss) available to common shareholders margin	10.2%		-1.6%		11.8pt			7.1%		-18.8%		25.9pt
Net income (loss) available to common shareholders per diluted share	$1.03		($0.11)		1036.4%			$2.33		($3.21)		172.6%
Adjusted EBITDAre	$168,110		$85,641		96.3%			$555,854		$177,339		213.4%
Adjusted EBITDAre margin	29.6%		22.7%		6.9pt			30.8%		18.9%		11.9pt
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture	$160,277		$85,641		87.1%			$540,545		$178,356		203.1%
Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin	28.2%		22.7%		5.5pt			29.9%		19.0%		10.9pt
Funds From Operations (FFO) available to common shareholders and unit holders	$104,864		$50,238		108.7%			$335,156		$30,915		984.1%
FFO available to common shareholders and unit holders per diluted share/unit	$1.80		$0.91		97.8%			$6.01		$0.56		973.2%
Adjusted FFO available to common shareholders and unit holders	$113,039		$52,069		117.1%			$363,501		$52,030		598.6%
Adjusted FFO available to common shareholders and unit holders per diluted share/unit	$1.94		$0.94		106.4%			$6.52		$0.94		593.6%

Note: For the Company’s definitions of Adjusted EBITDAre, Adjusted EBITDAre margin, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture, Adjusted EBITDAre, excluding noncontrolling interest in consolidated joint venture margin, FFO available to common shareholders and unit holders, and Adjusted FFO available to common shareholders and unit holders, as well as a reconciliation of the non-GAAP financial measure Adjusted EBITDAre to Net Income/(Loss) and a reconciliation of the non-GAAP financial measure Adjusted FFO available to common shareholders and unit holders to Net Income/(Loss), see “Non-GAAP Financial Measures,” “EBITDAre, Adjusted EBITDAre and Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Definition,” “Adjusted EBITDAre, Excluding Noncontrolling Interest in Consolidated Joint Venture Margin Definition” “FFO, Adjusted FFO, and Adjusted FFO available to common shareholders and unit holders Definition” and “Supplemental Financial Results” below.

Hospitality Segment

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Hospitality Revenue (1)	$484,459		$323,240		49.9%		$1,537,974		$786,583		95.5%
Hospitality operating income (loss) (1)	$105,782		$27,833		280.1%		$310,924		($38,427)		909.1%
Hospitality operating income (loss) margin (1)	21.8%		8.6%		13.2pt		20.2%		-4.9%		25.1pt
Hospitality Adjusted EBITDAre (1)	$150,720		$82,343		83.0%		$512,745		$175,648		191.9%
Hospitality Adjusted EBITDAre margin (1)	31.1%		25.5%		5.6pt		33.3%		22.3%		11.0pt
Hospitality Performance Metrics (1) (2)
Occupancy	72.8%		53.0%		19.8pt		66.2%		39.5%		26.7pt
Average Daily Rate (ADR)	$254.57		$246.96		3.1%		$236.86		$221.33		7.0%
RevPAR	$185.31		$131.00		41.5%		$156.71		$87.53		79.0%
Total RevPAR	$505.75		$337.44		49.9%		$404.69		$209.34		93.3%
Gross Definite Rooms Nights Booked	1,037,603		993,543		4.4%		2,675,174		2,504,975		6.8%
Net Definite Rooms Nights Booked	810,760		728,720		11.3%		1,805,598		1,201,268		50.3%
Group Attrition (as % of contracted block)	15.5%		23.2%		-7.7pt		20.6%		26.9%		-6.3pt
Cancellations ITYFTY (3)	2,533		28,071		-91.0%		205,662		571,663		-64.0%
(1)  Gaylord National closed on March 25, 2020 and remained closed until July 1, 2021.
(2)  Calculation of hospitality performance metrics includes closed hotel room nights available; includes the addition of 302 additional guest rooms due to Gaylord Palms expansion beginning June 1, 2021. ADR is for occupied rooms.
(3)  "ITYFTY" represents In The Year For The Year.

Note: For the Company’s definitions of Revenue Per Available Room (RevPAR) and Total Revenue Per Available Room (Total RevPAR), see “Calculation of RevPAR, Total RevPAR, and Occupancy” below. Property-level results and operating metrics for fourth quarter 2022 are presented in greater detail below and under “Supplemental Financial Results—Hospitality Segment Adjusted EBITDAre Reconciliations and Operating Metrics,” which includes a reconciliation of the non-GAAP financial measures Hospitality Adjusted EBITDAre to Hospitality Operating Income/(Loss), and property-level Adjusted EBITDAre to property-level Operating Income/(Loss) for each of the hotel properties.

Hospitality Segment Highlights

• Hotel occupancy reached 72.8% in Q4 2022, compared to 53.0% in Q4 2021 and 75.8% in Q4 2019 as occupancy nears pre-pandemic levels.

• Four Gaylord Hotels generated strong operating income and set fourth quarter revenue and Adjusted EBITDAre records, which was aided by leisure travel and the strength of our ICE! programming, which had a record attendance of over 1 million ticketed customers.

• Strength in leisure demand supported an all-time record leisure ADR of $317 in Q4 2022, helping strong total ADR performance across our hotels of almost $255 in Q4 2022, an increase of 3.1% compared to Q4 2021 and 23.3% compared to Q4 2019.

• Gaylord Opryland led the portfolio in occupancy with 80.7% occupancy for the quarter, on notable leisure transient demand over the holidays.

• Gaylord Palms and Gaylord Rockies reported occupancy for the quarter of 77.9% and 69.9%, respectively, both above Q4 2019 levels.

• Despite occupancy of 60.5%, Gaylord National delivered operating income margin of 11.8%, with Adjusted EBITDAre margin in line with Q4 2019, as the reconcepting of food and beverage continues to drive operating efficiencies.

Gaylord Opryland

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$138,353		$96,323		43.6%		$424,188		$238,567		77.8%
Operating income	$41,981		$23,764		76.7%		$118,895		$34,729		242.4%
Operating income margin	30.3%		24.7%		5.6pt		28.0%		14.6%		13.4pt
Adjusted EBITDAre	$50,554		$32,237		56.8%		$153,250		$68,531		123.6%
Adjusted EBITDAre margin	36.5%		33.5%		3.0pt		36.1%		28.7%		7.4pt
Occupancy	80.7%		61.4%		19.3pt		69.5%		44.2%		25.3pt
Average daily rate (ADR)	$258.08		$254.37		1.5%		$242.71		$234.15		3.7%
RevPAR	$208.39		$156.17		33.4%		$168.73		$103.47		63.1%
Total RevPAR	$520.72		$362.53		43.6%		$402.41		$226.32		77.8%

Gaylord Palms

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$90,925		$56,835		60.0%		$279,578		$139,130		100.9%
Operating income	$20,514		$8,053		154.7%		$64,201		$3,539		1714.1%
Operating income margin	22.6%		14.2%		8.4pt		23.0%		2.5%		20.5pt
Adjusted EBITDAre	$27,204		$14,989		81.5%		$90,735		$29,789		204.6%
Adjusted EBITDAre margin	29.9%		26.4%		3.5pt		32.5%		21.4%		11.1pt
Occupancy (1)	77.9%		54.0%		23.9pt		68.4%		44.6%		23.8pt
Average daily rate (ADR)	$265.66		$266.16		-0.2%		$241.85		$220.90		9.5%
RevPAR (1)	$206.94		$143.60		44.1%		$165.40		$98.46		68.0%
Total RevPAR (1)	$575.27		$359.57		60.0%		$445.85		$238.19		87.2%
(1) Calculation of hospitality performance metrics includes 302 expansion rooms beginning June 1, 2021.

Gaylord Texan

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$102,283		$71,563		42.9%		$307,318		$180,031		70.7%
Operating income	$30,631		$17,811		72.0%		$88,154		$28,948		204.5%
Operating income margin	29.9%		24.9%		5.0pt		28.7%		16.1%		12.6pt
Adjusted EBITDAre	$36,287		$23,954		51.5%		$111,954		$53,660		108.6%
Adjusted EBITDAre margin	35.5%		33.5%		2.0pt		36.4%		29.8%		6.6pt
Occupancy	72.9%		62.6%		10.3pt		69.0%		49.1%		19.9pt
Average daily rate (ADR)	$270.93		$250.13		8.3%		$238.77		$221.00		8.0%
RevPAR	$197.44		$156.51		26.2%		$164.65		$108.52		51.7%
Total RevPAR	$612.88		$428.81		42.9%		$464.15		$271.91		70.7%

Gaylord National

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$76,114		$39,843		91.0%		$249,849		$79,419		214.6%
Operating income (loss)	$9,016		($9,340)		196.5%		$19,609		($47,448)		141.3%
Operating income (loss) margin	11.8%		-23.4%		35.2pt		7.8%		-59.7%		67.5pt
Adjusted EBITDAre	$18,625		$265		6928.3%		$61,402		($11,484)		634.7%
Adjusted EBITDAre margin	24.5%		0.7%		23.8pt		24.6%		-14.5%		39.1pt
Occupancy (1) (2)	60.5%		31.6%		28.9pt		56.5%		19.1%		37.4pt
Average daily rate (ADR)	$254.09		$258.49		-1.7%		$238.13		$230.12		3.5%
RevPAR (1) (2)	$153.60		$81.76		87.9%		$134.45		$43.93		206.1%
Total RevPAR (1) (2)	$414.49		$216.98		91.0%		$342.94		$109.01		214.6%
(1) Calculation of hospitality performance metrics includes closed hotel room nights available.
(2) Gaylord National closed on March 25, 2020 and remained closed until July 1, 2021.

Gaylord Rockies

($ in thousands, except ADR, RevPAR, and Total RevPAR)
	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$70,438		$54,425		29.4%		$253,326		$135,942		86.3%
Operating income (loss)	$2,780		($12,334)		122.5%		$17,178		($56,034)		130.7%
Operating income (loss) margin	3.9%		-22.7%		26.6pt		6.8%		-41.2%		48.0pt
Adjusted EBITDAre	$16,556		$10,375		59.6%		$89,955		$34,728		159.0%
Adjusted EBITDAre margin	23.5%		19.1%		4.4pt		35.5%		25.5%		10.0pt
Occupancy	69.9%		54.0%		15.9pt		68.3%		39.9%		28.4pt
Average daily rate (ADR)	$239.57		$224.13		6.9%		$234.19		$215.17		8.8%
RevPAR	$167.35		$121.06		38.2%		$159.87		$85.90		86.1%
Total RevPAR	$510.08		$394.12		29.4%		$462.39		$248.13		86.3%

Entertainment Segment

For the three and twelve months ended December 31, 2022, and 2021, the Company reported the following:

($ in thousands)	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Revenue	$84,416		$54,191		55.8%		$267,995		$152,790		75.4%
Operating income	$22,286		$10,305		116.3%		$60,498		$20,376		196.9%
Operating income margin	26.4%		19.0%		7.4pt		22.6%		13.3%		9.3pt
Adjusted EBITDAre	$26,136		$11,946		118.8%		$74,173		$28,854		157.1%
Adjusted EBITDAre margin	31.0%		22.0%		9.0pt		27.7%		18.9%		8.8pt

Fioravanti continued, “Our Entertainment segment continued to deliver strong results in 2022, including record-setting full year revenue, operating income and Adjusted EBITDAre. We remain excited about the integration of Block 21 into our entertainment portfolio, which we look to position as a destination for music lovers across the globe as part of Austin’s rich music environment. We have also broken ground on our latest Ole Red location in the heart of the Las Vegas Strip, which will be the largest Ole Red asset to date. We look forward to collaborating with our partners, Atairos and NBCUniversal, on the next phase of growth for our portfolio of unique entertainment assets.”

Corporate and Other Segment

For the three and twelve months ended December 31, 2022, and 2021, the Company reported the following:

($ in thousands)	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2022		2021		% ∆		2022		2021		% ∆
Operating loss	($11,765)		($12,004)		2.0%		($44,272)		($40,624)		-9.0%
Adjusted EBITDAre	($8,746)		($8,648)		-1.1%		($31,064)		($27,163)		-14.4%

The primary factor in the increase in operating loss and decrease in Adjusted EBITDAre for the Corporate and Other segment for the full year as compared to the prior year was an increase in 2022 in administrative and employment costs associated with the hiring of additional employees and increased wages to support the Company’s growth.

Fioravanti concluded, “We entered 2023 in great shape despite continued macroeconomic uncertainty. We remain excited about the strength of our businesses and our unique portfolio of assets and believe we are well positioned to advance the strategic priorities we have set for the Hospitality and Entertainment segments. I am honored to be named as CEO of this truly one-of-a-kind business, and I look forward to working with Colin in his role as Executive Chairman, our capable and seasoned management team, and our dedicated employees to deliver value to our stakeholders.”

2023 Guidance
The following business performance outlook for 2023 is based on current information as of February 23, 2023. The Company does not expect to update the guidance provided below before next quarter’s earnings release. However, the Company may update its full business outlook or any portion thereof at any time for any reason.

($ in millions, except per share figures)	Current Guidance								Full Year
	Full Year 2023								2023 Guidance
	Low				High				Midpoint
Consolidated Hospitality RevPAR growth		9.0	%			12.0	%			10.5	%
Consolidated Hospitality Total RevPAR growth		6.5	%			9.5	%			8.0	%
Net Income	$	199.8			$	216.0			$	207.9
Operating Income
Hospitality	$	371.5			$	391.5			$	381.5
Entertainment		69.0				73.5				71.3
Corporate and Other		(44.0	)			(43.0	)			(43.5	)
Consolidated Operating Income		396.5				422.0