Tag: Ryman

Ryman Hospitality Properties: Here’s Why This Hotel REIT Is Worth Owning

Ryman Hospitality Properties (NYSE:RHP) is certainly hurting this year. At a time when conventions, conferences, and other large events are just not happening, it’s not a great time to own group-focused hotel properties. However, there could still be a very bright future for this company, and in this Nov. 5, 2020 Fool Live video clip, Millionacres REIT analyst Matt Frankel, CFP and Millionacres editor Deidre Woollard discuss the recent results and why investors should look beyond the pandemic. 

Matt Frankel: Moving on to our next one, which is Ryman Hospitality Properties, ticker symbol is RHP. If you’ve ever been to a Gaylord Hotel, this is their parent company. Unlike Empire State, Ryman is not profitable. Ryman’s hotels are specifically oriented toward conventions, conferences, other large group of events. The one in DC hosts the big ICE exhibit every year, just to name one thing. The DC one is actually still closed. They’re using this opportunity to renovate it a little bit. It’s not a great hotel just for leisure travelers, so they decided to keep that one closed. The other four are open. But for Q3, they were less than 50 percent occupied. That’s better than zero, and Ryman’s obviously decided that that’s enough that it’s worth keeping them open for, but this is not a profitable company right now. They’re burning through about $23 million a month. They have that to burn through. They have over 700 million in liquidity, so they’re not in the danger zone or anything like that, which is why their stock actually has not done that bad since start of the pandemic. They also own some entertainment venues. They get their name from the Ryman Auditorium in Nashville. They also own the Grand Ole Opry, which had been experimenting with some very, very lightly attended live shows recently, and just got the go-ahead to bump that up to 25 percent capacity. That could be a positive going forward. But for now, they are hemorrhaging money, but they’ve rebooked successfully over a million canceled room nights for subsequent years. Deidre, I’ll let you take this because you actually tweeted out a comment by Ryman’s CEO about the future of conferences and conventions, if you remember that one.

Deidre Woollard: Yeah. Colin Reed was talking about how he feels like the Work From Home movement actually benefits Ryman a little bit because they’re already seeing some companies hold their retreats at the properties and that that’s going to continue. If people are a distributed workforce, they will need to get together from time to time, and what better place to do it than at a Ryman property. They’re beautiful places to be, so it’s a treat for the workers and there’s plenty of room. So he really sees that as something that’s going to be something people will be looking at going forward.

Matt Frankel: I’m glad you mentioned just how beautiful and iconic these hotels are. They are very valuable assets. They’re really one of

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