Ryman Hospitality Properties, Inc. (RHP) is a lodging and hospitality REIT that owns and operates upscale convention center resorts and country music entertainment experiences. RHP’s common shares look suitable for medium-risk, tax-deferred portfolios, suggests Marty Fridson, editor of Forbes/Fridson Income Securities.
RHP’s convention centers operate under the Gaylord Hotels brand and are managed by Marriott International. Its entertainment segment encompasses a collection of iconic and emerging country music brands that include the Grand Ole Opry, Ryman Auditorium, WSM 650 AM Radio, Ole Red, Circle, and Austin City Limits. RHP focuses on destination and hotel assets in markets such as Nashville, San Antonio, Grapevine (TX), Kissimmee (FL), and more.
Ryman Hospitality Properties Inc. (RHP)
The company’s credit profile has remained stable, as lease-adjusted debt to EBITDA has declined to approximately 5X. Revenue per available room (RevPAR) saw strong growth in 2023, compared with the prior-year period, benefiting from the sustained recovery in business and group travel.
RHB reported strong Q3 2023 results, with adjusted funds from operations (AFFO) of $111.3 million, or $1.73 per share, easily beating analysts’ $1.58 estimates. Revenue of $528.5 million was up a solid 13% year-over-year, matching estimates.
Operating income from the Hospitality segment was especially strong, as RHP booked more than 695,000 gross advanced group room nights for all future years, at a record average daily rate (ADR) of $268, a 6.3% increase from a year earlier. Occupancy was flat year-over-year at 72.7%.
Dividend distributions are largely taxed as ordinary income.
Recommended Action: Buy RHP.
