Ryman Hospitality Properties Inc

Ryman Hospitality Properties, Inc. announced that its subsidiaries, RHP Hotel Properties, LP and RHP Finance Corporation, have closed a private placement of $700 million aggregate principal amount of 6.250% senior notes due 2035. The notes are senior unsecured obligations guaranteed by the company and its subsidiaries. Net proceeds of approximately $689 million will fund a portion of the $1.38 billion purchase price for the pending acquisition of the JW Marriott Orlando Grande Lakes Resort and The Ritz-Carlton Orlando, Grande Lakes. The remainder will be covered by proceeds from a common stock offering of 5,865,000 shares at $117.00 per share, which closed on August 12, 2026, and cash on hand. If the acquisition is not completed, the notes will be redeemed at 100% of the issue price plus accrued interest.

Ryman Hospitality Properties reported record second-quarter revenue of $749.0 million, up 13.6% year over year, and raised its full-year 2026 adjusted EBITDAre guidance to a range of $878 million to $910 million. Net income rose to $102.1 million, or $1.42 per diluted share, from $75.9 million a year earlier, while adjusted EBITDAre increased 21.9% to $258.3 million. Same-store hospitality revenue grew 6.5% to $544.3 million, driven by higher average daily rates, and entertainment segment revenue reached an all-time quarterly record of $144.0 million. The company also raised its same-store hospitality adjusted EBITDAre guidance by $10 million at the midpoint to $735.0 million and increased capital expenditure guidance to $400 million to $500 million for 2026, reflecting acceleration of projects previously planned for 2027. Management noted that group rooms revenue pace for all future periods was up 8.8% as of the end of July, and the board continues to evaluate potential new investors or partners in Opry Entertainment Group.

Ryman Hospitality Properties has closed its underwritten public offering of 5,865,000 common shares at $117.00 per share, generating approximately $658 million in net proceeds. The offering included 765,000 shares sold after underwriters fully exercised their over-allotment option. The company will contribute the net proceeds to its operating partnership to fund part of the roughly $1.38 billion purchase price for the JW Marriott Orlando Grande Lakes Resort and The Ritz-Carlton Orlando, Grande Lakes. The remaining balance will be covered by cash on hand and about $689 million in net proceeds from a private placement of $700 million in 6.250% senior notes due 2035, expected to close on August 25, 2026. If the acquisition does not close, the offering proceeds will be used for general corporate purposes and the notes will be redeemed at 100% of their issue price plus accrued interest.

Ryman Hospitality Properties agreed to acquire the Grande Lakes Orlando Resort in Florida for $1.38 billion from Trinity Investments. The 409-acre property includes a 1,010-room JW Marriott, a 582-room Ritz-Carlton, and an 18-hole golf course, with Marriott International continuing to operate the hotels under their existing brands. The purchase price represents 12.5 times trailing adjusted EBITDAre, and Ryman expects the acquisition to increase adjusted FFO per share in 2027. The company expects to close the transaction in the third quarter of 2026, subject to customary closing conditions.

Simply Wall St has increased its fair value estimate for Ryman Hospitality Properties to $134.15 per share from $129.54, driven by adjustments in revenue growth, net profit margin, future P/E multiple, and discount rate assumptions. The revenue growth assumption was lowered from 5.32% to 4.33%, while the net profit margin assumption rose from 11.73% to 12.07%. The future P/E multiple increased from 28.37x to 29.93x, and the discount rate moved from 8.57% to 8.76%. Several Wall Street firms, including Wells Fargo, JPMorgan, Barclays, BMO Capital, Raymond James, Truist, and Cantor Fitzgerald, have raised price targets on the lodging REIT, with Wells Fargo setting a target of $136. However, Barclays cautioned that the sector's recent share performance may have moved too far, too fast relative to earnings, and Cantor Fitzgerald flagged macro and geopolitical risks that could limit valuation multiples.

Ryman Hospitality Properties reported all-time quarterly record consolidated revenue of $749.0 million for the second quarter of 2026, driven by record second quarter same-store Hospitality segment revenue of $544.3 million and all-time quarterly record Entertainment segment revenue of $144.0 million. The company generated consolidated net income of $102.1 million and consolidated Adjusted EBITDAre of $258.3 million. Same-store Hospitality RevPAR reached an all-time quarterly record of approximately $202, up 5.2% from the prior year quarter, while the estimated average daily rate for future bookings hit an all-time quarterly record of approximately $310, an 8.6% increase. The company is raising its full year outlook due to strong second quarter performance and a modest increase in expectations for the second half of 2026. President and CEO Mark Fioravanti attributed the results to the premium group customer strategy and strong Entertainment execution, noting that higher ADR and ancillary spending drove outperformance.

Ryman Hospitality Properties is evaluating partnership opportunities for its Opry Entertainment Group business after receiving inbound interest from organizations. Executive chairman Colin Reed cited the global popularity of country music and demand for live experiences, and the company has engaged Morgan Stanley to help assess potential opportunities. Reed added that Ryman expects to play an integral role in OEG's continued growth regardless of any strategic partnerships being considered. Separately, BMO Capital raised its price target on Ryman Hospitality to $137 from $125 with an Outperform rating, while Raymond James raised its target to $125 from $120, also with an Outperform rating.

Ryman Hospitality Properties shares surged 4.5% to close at $129.77 in the last trading session, driven by the company's announcement that it has engaged Morgan Stanley to explore strategic options for its Opry Entertainment Group business, including a potential partial divestiture or strategic partnerships. The move was backed by solid volume, and the stock has gained 8.5% over the past four weeks. The company is expected to report quarterly funds from operations of $2.29 per share, a year-over-year decline of 2.6%, on revenues of $729.95 million, up 10.7%. The consensus FFO estimate for the quarter has been revised 1% higher over the last 30 days. Ryman Hospitality Properties currently carries a Zacks Rank #3, or Hold.