RH
Ryman Hospitality Properties, Inc. (RHP)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 revenue rose 7.7% year over year to $592.5M, with diluted EPS of $0.53; consolidated Adjusted EBITDAre was $173.1M as hospitality mix and cancellations tempered margins .
- Against S&P Global consensus, RHP delivered a beat on revenue ($592.4M vs $576.7M*) and Primary EPS (0.586* vs 0.447*), while EBITDA (standard) was below consensus ($163.1M* vs $168.0M*) given definition differences with Adjusted EBITDAre .
- Management narrowed full‑year ranges, modestly lowering midpoints for Entertainment and consolidated Adjusted EBITDAre, while maintaining same‑store RevPAR/Total RevPAR growth and EPS midpoints .
- Call tone: constructive on 2026–2027 group pace and rate quality; near‑term caution on government‑related cancellations and Nashville entertainment supply; holiday programming pacing ahead, targeting improved Q4 leisure .
- Potential stock reaction catalysts: sustained beats vs consensus on revenue/Primary EPS; updates on OEG growth (Category 10 Las Vegas), holiday outcomes, and 2026 guidance detail in February .
Values retrieved from S&P Global.*
What Went Well and What Went Wrong
What Went Well
- Same-store hospitality continued to book at record rates; gross group room nights for all future years up 9% and ADR at an all-time high, with 2026 and 2027 group rooms revenue pacing +8% and +7% respectively .
- Property-level performance: Gaylord National and Gaylord Rockies achieved third-quarter total revenue records; Rockies posted occupancy 83.6% and Total RevPAR $564.49 (+7.3% YoY) .
- Entertainment brand momentum: Opry’s first international performance (Royal Albert Hall) drove engagement; Category 10 Las Vegas development underway for late 2026 opening .
What Went Wrong
- Corporate group room nights down ~20k YoY; banquet and AV revenue declined ~$13.6M, reflecting mix shift and decision-making pauses tied to tariff uncertainty .
- Elevated cancellations and attrition (same-store attrition/cancellation fee revenue ~$11.6M, up $3.7M YoY); government/government-related groups particularly impacted .
- Downtown Nashville entertainment volumes softened amid new supply; Entertainment midpoint lowered and consolidated Adjusted EBITDAre midpoint reduced by $3M .
Financial Results
Consolidated Quarterly Performance
Year-over-Year Q3 Comparison
Consensus vs. Actual (S&P Global)
Values retrieved from S&P Global.*
Note: Company reports Adjusted EBITDAre ($173.1M), which differs from standard EBITDA used by consensus .
Segment Breakdown (Q3 2025)
Hospitality KPIs (Q3 2025)
Guidance Changes
Dividend: Paid $1.15 per share on Oct 15, 2025; policy to distribute ≥100% of REIT taxable income annually .
Capex: FY 2025 expected $375–$425M (spent ~$252M YTD through 9/30); major projects include Opryland sports bar (Apr 2026), Opryland meeting expansion (2027), Texan rooms renovation (mid‑2026) .
Earnings Call Themes & Trends
Management Commentary
- “Our same-store hospitality segment delivered results towards the high end of our expectations… outlet sales per occupied room increased nearly 13%… Gaylord National and Gaylord Rockies were third-quarter records” — Mark Fioravanti .
- “We were pleased to deliver third quarter results largely in line with our expectations… uncertainty associated with new U.S. tariff announcements… marginally impacted our group business” — CEO statement in release .
- “International engagement with the Opry brand has exceeded our expectations… expanding Category 10 with a second location on the Las Vegas Strip” — Mark Fioravanti .
- “Cancellations have been elevated… mostly in the government and government-related sectors… corporate leads and booking volumes continue to be very strong” — Patrick Chaffin .
- “Room nights on the books previously… are calling in and reducing their blocks… we continue to see really strong gross results” — Patrick Chaffin .
Q&A Highlights
- Entertainment outlook: management expects market absorption in Nashville given new supply; reaffirmed long-term growth trajectory with OEG expansion and Category 10 Las Vegas .
- Cancellations: elevated primarily in government; early signs of improvement in September/October; corporate demand/leads remain strong .
- Government shutdown impact: limited, isolated effects at Gaylord National; property performance on plan .
- Group mix and rate: 2026 uplift driven ~two‑thirds by rate; strategic pivot toward higher‑quality corporate mix .
- Desert Ridge rotation: early days; added sales resources to increase rotational overlap; expect more detail by February .
Estimates Context
- Q3 2025 revenue beat S&P Global consensus ($592.4M* actual vs $576.7M* consensus); Primary EPS beat (0.586* vs 0.447*). Standard EBITDA missed consensus ($163.1M* actual vs $168.0M*), while company’s Adjusted EBITDAre printed $173.1M .
- Note: Primary EPS (S&P) and diluted EPS (company) differ by definition; consensus EBITDA may not reflect Adjusted EBITDAre. Target price consensus mean is $111.85*; consensus recommendation unavailable*.
Values retrieved from S&P Global.*
Key Takeaways for Investors
- Mix-driven margin pressure and cancellations are near-term headwinds, but the rate quality and forward group pace for 2026/2027 support medium-term EBITDA growth and visibility .
- Holiday programming and leisure are pacing ahead; a stronger Q4 could catalyze sentiment if realized, particularly given cautious guidance .
- Entertainment headwinds from Nashville supply are acknowledged; OEG’s pipeline (Category 10 Las Vegas, amphitheater operations) and international brand momentum provide offsetting growth vectors .
- Capex projects (Opryland sports bar, Texan rooms, Desert Ridge meeting conversion) are slated to contribute in 2026 with management targeting mid-teens unlevered IRRs on Category 10 Las Vegas .
- Balance sheet liquidity remains robust: ~$483M cash and $780M undrawn revolvers; dividend policy sustained at ≥100% REIT taxable income .
- Tactical: watch Q4 holiday actuals, government shutdown resolution, and February’s 2026 guidance for group mix/rate detail; any early-cycle corporate demand acceleration could re-rate shares via estimate revisions .