RHP - Earnings call transcript Q4 2018 | Ryman Hospitality Properties, Inc.

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Operator

Welcome to Ryman Hospitality Properties Fourth Quarter 2018 Earnings Conference Call. Hosting the call today from Ryman Hospitality Properties are Mr. Colin Reed, Chairman and Chief Executive Officer; Mr. Mark Fioravanti, President and Chief Financial Officer; Mr. Patrick Chaffin, Senior Vice President of Asset Management; and Mr. President Counsel. Vice Senior Lynn, and General Scott This be available replay. for digital call will XXX-XXX-XXXX ID the number and The is conference number XXXXXXX. is time, this listen-only all have been At placed participants mode. on over pleasure my is It Mr. to turn now the to floor Scott Lynn. you may begin. Sir,

Scott Lynn

of may be statements today. expects are in about Good forward-looking contain fact we call results by financial the historical these may believes company's the filings statements. project Securities differ company's forward-looking morning. many or Words of not Act Any such in may Litigation discuss defined expected results This today's Reform deemed company's affected joining the are we statements, as XXXX materially as or in be Thank from that be listed identify intended to The for Private you and statements make to the us those today. SEC today statements including may performance. factors, including release. which actual statements

any as reason. forward-looking We other will statements, any of not a new future or whether update events information, result

also discuss non-GAAP the turn reconcile to call now measure measure I Colin will comparable to release. today. measures over GAAP today's non-GAAP an most each in the We will exhibit financial to We

Colin Reed

in expansion. And course, segment a two year us. Red was opening note morning, another Texan as of in work Nashville thank revenue Good year more Ole expansion Ole full two set with record going as as and the the of exciting The and Gaylord a fourth company, to booking on record beginning SoundWaves everyone We are by Gaylord the Entertainment exciting for yet Thanks, quarter December. Scott. books there And is, the our our Gaylord way, it flourish, Rockies this by May record you most thing also Well, talk come all in rooms in quarter opening year of for Opryland. a and first year joining shaping EBITDA company, another for more for and up equally the the Palms similar Gatlinburg But on, exciting in XXXX is at most our history our is Orlando. we fourth we an a investments for exited the started and on XXXX moment. about for XXXX and and announced while our And and hotels. for really we well. adjusted was Reds let's opened production lots our

November our at and that low in that total and QX up shy RevPAR of X.X%. RevPAR total RevPAR up we slightly growth down a we told expected we you bit single-digit with in and RevPAR for Now Hospitality X.XX% segment came

in get up over this the talk portion less and that the is we short driven. in our segment our business Now Group shape the about which great December short a not bookings when in predictable we'll in Instead, holidays, leisure performance. to while shortfall remains was tad transient group primarily that a of came it expectations. was our

the the finally the consumers' doubt the that No the fell S&P on December. abrupt XX, on holiday. into Eve, through this rather into nation recall as going will market the ran many government in on decline XXnd. into markets was Christmas you Now From a looming XX.X% December shutdown the minds effect X, stock Monday, close went on

that in have February. pleased markets subsequently Now January I to am and say recovered

grew we when the is weakness we holiday on a Palms performed there, its Orlando and dug December RevPAR transient. performed makes competitive Palms data actually Now for market difficult The against December X% the very that how basis. a Palms its in very itself feel found us in most in a by set. business the as what Orlando. saw about transient index month well into is was we of the our the while pronounced The interesting that had what good over at And whole relative

their in of our our in Patrick In with opening below packages can Opryland, December of little exceeded package the section. the market about that hotels our tell while fact, to SoundWaves. tickets and room I orientated sold in plan. will you that a month. associated response some of expectations, And And portion were that December, the RevPAR I the indoor a very grew SoundWaves in specific bit performed Q&A think transient share the programs in we leisure pleased all with of bit Christmas our internal talk nights

at we same-store is is very our year top-end of growth from full-year XX% well business, year aside And or flow-through our million midpoint at adjusted very certainly the our X%, matters $XXX year the rest day, hotels within delivering of comfortably important And profitability. of of quarter well, leisure course So for our a all above And hotels the our which the of provided our and industry. that most group RevPAR the EBITDA of for responded segment, have and is with of end went for what ranges expectations. the the and in-line our expectations. full holiday-period most our the delivered essentially growth XXXX in business, RevPAR and of fourth the total we for blip X.X%

our So hotels ability execution of business Gaylord we're of the the the on tremendous our And brand. of of economic that visibility and across deliver the our remains to in fourth quarter group business, pleased engine model, with book the shape. group their very in

demand. a along and the year-end XXXX of average published point presentation about and clear in group really growth year-over-year XXXX, last and the was of decline demand sort rate STAR, to a finally most a demand there after from data to was STAR recently start XXXX. and According their group as went of real pronounced solid XX-month just STAR performance titled at months of overall there Now meddling year-over-year for year. strong. for trend couple X% flat X% in demand in exiting the latest group moving the slide, the most important the the growth us across months of upward first And country of XXXX hotel is of industry their XXXX nine Group

Now, with under of didn't umbrella. of portfolio have seen in continued looks our growing surprise rosy. we the convention because in of outlook us for The us, production evidence course, this very and years. hotels, coupled over supply this demand With several new this all last one segment a very world-class little numbers

hotels Rockies, form. group Now to illustrate this, same-store in booked as room gross quarter, excluding the in Gaylord contract X,XXX,XXX the fourth nights

over that years. XXXX and nights clear another increase a been that Now company yet to comfortable by we just mid-year, two the record And for fourth not quarter opened our because this room QX we expansion have is selling was Texas past rooms due our those now XX,XXX margin. for

year at on once the net the same-store had our XXXX, fine pacing. occupancy start Now and point well of XXXX. excluding another health of business, more we At over the give preview the and of did way on points let the doesn't it XXXX a for one again, how basis, put on one coming state than X the books that we -- a of in are start XXXX me you a of Rockies,

revenue about net XXXX than Now that with. room nights to translated started net and more X.X% X.X% rooms more

better. for Now pace XXXX even our looks hotel

nights XXXX. excluding Rockies, net did now, December future had the bookings rooms years points a which more the for same-store Right XX, occupancy XXXX, more we we increase on and a of the room have again, tremendous in over books, net revenue and As Rockies, group the which a we in X% XXXX combined year X that ago XXXX. the accomplished on basis, T+X time excluding year same one is million we for -- on consequence still net or last course XX% is of all of the of books than X.X

Rockies XXX,XXX had Now for room year. gross group the the X.X the net excuse me, million all over Rockies on alone in future room generated in QX, for the books and nights nights years. December XX, Gaylord XXX,XXX group On addition,

Hotel the size. any a for the time certainly a opening record of hotel any of Now comparable that for possibly and Gaylord is largest at

occupancy Now net points for books, occupancy the XX.X% pacing, in XXXX on terms entered net books XXXX. of a XX% the stunning with the on and Rockies points

let time. emphasize more statistic that Now, one me

successful. As two years its the and of serving XXXX books XX, business Rockies customer year. than in out is for The XXXX, Colorado occupancy shape on hotels years to booking our December our region who short, had for have and much more -- to hotels and of the meaningfully next group in of hospitality investments couple customers the Gaylord is in make for these typically In is more the so this underway that. our reflection net upcoming a we've patents great game-changer continue Rockies for loyal come a December

revenue Blake with fourth Now in quarter. quarter the move guidance our business tell business, onto of before by Entertainment in Gatlinburg adjusted two Orlando. the has grew to locations fourth announce Entertainment in grew next which been Red Nashville in the XXXX investment and performed also how we and updates, great an Total for led let downtown hit Shelton, Ole flagship and this and was and you EBITDA XX.X% the momentous us the me XX.X%. a finish talking spurred year our equally opening about our quarter our segment

revenue in Stage, our and assets this fourth limits the Entertainment and Stage in the York the quarter City solid costly by core too Excluding suspended the grew -- that new around concept Ole refocused distracting to the would tours terms experiences. so retail, X% Red decision City space. we're the the some fourth early of New in the XX%. House in works making in reposition content be the and continued at Therefore, of EBITDA of in attractions giving expanded Nashville the projects the and And adjusted success towards and given our our concept given for Opry other We quarter made business and of by City a have other ensuring areas we Opry we senior efforts stay Red, exciting VIP Entertainment of Ole this tuned. and and our success leadership Entertainment the business have investments Opry

another close and that to be that, course, let about XXXX company talk this another our Now the is on and year for XXXX. of books record shaping is year us yet exciting up

Rockies, of RevPAR X% Hospitality we advanced and the Same-Store our in year X.X% to to another total total First, our the excluding of RevPAR. given and X% for expect of the segment, of range RevPAR good RevPAR growth book-of-business X.X%

hotels, million million same-store $XXX our the deliver EBITDAre. expect Rockies, of We adjusted to excluding to $XXX

version talking definition, well as that an former as the this usual about new EBITDA EBITDAre. Adjusted the guidance. consolidated adjusted note metric to new will report referenced XXXX, to our of to adjusted is adjusted making we'll adjustments In to such XXX% Rockies. near-REIT call near-reach of both I've it begin substantially EBITDAre arrive at ventures, a according Now any what when joint as we except that the EBITDAre identical includes EBITDAre

or Of the our is difference EBITDA since last between Rockies was historical not XXXX majority-owned consolidated really and results. year, no course, adjusted for EBITDAre adjusted there

back Now guidance. to

I XXX% is XXX% EBITDAre, Rockies. of rata segment contribute Gaylord from local figure Combined That million $XX we of $XX our the including EBITDAre Beyond as million in hotels, and to pro expect consolidated share. segment Rockies authorities, figure our million includes mentioned to same-store $XXX the Gaylord total adjusted to XXXX. this of not the an Hospitality $XXX the implies to rebates additional Hospitality million a incentive adjusted

continued adjusted we is headwinds a remove of For million million that Opry Red XX% is business, Stage our Ole of XXXX, on several which $XX in core in changes partial of of Nashville expect growth our Entertainment a and top Gatlinburg, the full the as EBITDAre we up Nashville year over Ole mix Red $XX growth and pick to solid year City of businesses. of

million. Finally, EBITDAre million $XXX a EBITDAre for expect in loss in our for to $XX $XX company segment, of our million the Corporate range consolidated XXXX. we adjusted million in results to $XXX adjusted of This

EBITDAre, excluding to million. Now for I that on that million to those $XXX.X am of $XXX translates and the pro camp, you who a minority purely in $XXX.X -- an interest rata about million of basis Rockies figure contribution prefer to adjusted think

company I projections to matter compare different the for many and next our Now, be with. really tends quite XXXX community suppose throughout those the in at of doesn't companies how you should year. from a us it investment We great look turn see our growth and good year

of of seen. outdoor activity Group on square-foot and my breakout investment and an you, -- me A are you meeting on did I for Rockies maintain X,XXXX the middle update opening see the XX.X% that open XX% expect feet SoundWaves official ownership a We up give -- hosting square in it Rockies we let maybe a we'll before our is this grand the to very still brief At XX and XXX of Palms for the projects the May opening December. have Denver, quick track brought positive Orlando the the to -- acquisition project portion current be the years ceremonies new covered the parking concluded position in have of and Gaylord and we remains ballroom, XX,XXX indoor open some of we the on Now XXX-room -- December underway we'll of on of Palms marketing past this and major year this December conclude. Gaylord I response I remain expansions leisure XXXX, portion in garage. We space come. our opening remarks, the group In sorry competitive X,XXX progress hotel weekend Opryland the square we the that to may not to track the of This of successful of to around which today. highlighted efforts start -- market coming incremental our well underway. following soft announced a includes

the say to transaction to XXXX July which pleased in that hotel our Gaylord how finally capacity. very X.X% on and is performed has in the expect production Tower how expansion business with And in for and May to year partners one-year anniversary this our complete closing been inaugural time. the its our Vineyard our of will of our us acquiring least Texan Dallas, additional lead up an in about in We has sales we've its approaching taken new second

year our pace and Orlando to delivering we and to along and the have another Entertainment our conclusion, and come quickly moving full Now on that Red Red is XXXX. open plate House early XXXX, to look premium group expect on to of is Ole to a budget pace our leisure behind year and In and experiences likely -- weeks is Ole retail great and of for forward hotel we this to at section, on At our VIP in Gatlinburg a on like them expect. customers investing see couple moving Entertainment enhancements and complete the and open summer. in XXXX budget likewise tour guests just our in Opry and

and finally, for communities do you over calling like the business in. to And generates approved this performance call and to with today. by our given a as payout increase turn Board to to that the were the X.X% I time increase. Once Now, on experiences QX into increase $X.XX operating that, our shareholders our outlook, we at our it do what to we of per year, your the employees, quarterly share, our This of we success benefits also shareholders for our able by to I'll the translate again, well Mark operating great is our color attention our as investing deliver the dividend do a Mark? our give more and why and outlook rewards to XXXX. to customers loyal we business tangible

Mark Fioravanti

year. prior generated morning million, In $XXX.X Colin. quarter everyone. up X.X% total from of Thanks, the XXXX, Company the revenue the of Good fourth

prior also to to Gaylord million. Rockies completed XXXX increased previous City Gaylord for a Rockies. by the quarter in investment write-off common offset recognized For income to purchase in associated company full our is at gain year venture Stage. This majority net gain in nearly and ventures losses primarily This of the of small full $X.XX the the where of increased $XXX.X mark-to-market charges, income billion. million shareholders with quarter hotel. large purchase joint which is the equity interest acquisition. established were XX% XXXX, the appears in from Opry the on our impairment increased income our This $XXX.X The the to year investment occurred offset in the partially operating remaining that fourth Net X.X% at in the of effectively $XXX total revenues joint partially our by XXX% to was million valuation available gain increase the for line it in fourth result the increased

headwind to This non-GAAP interest adjusted an translated Now million Gaylord moving basis year-over-year in a which year-over-year of receipts and a decline approximately margin increase XX last of cancellation over company on fourth our metrics, in and of the and EBITDA year year. have production the decline generated the points cost adjusted large in $XXX.X Hospitality The hospitality cancellation EBITDA a in terrific of consolidated the approximately attrition and was quarter. the balance to In flow-through of was fourth two on increased bond basis wage labor a increase National especially Nashville EBITDA the in higher in to adjusted quarter, due management fees. been favorable $XXX,XXX margin increases $XXX,XXX fee in to The due sales decline commissions X.X% of and timing segment, revenue, quarter incentive by Orlando. impacted the fourth the given quarter. last of year-over-year

on for expectation in in We markets XXXX this the additional in wages we've upward is expect modest and some provided these year. the reflected pressure guidance

guidance our despite mentioned, adjusted For the margin full points, Note points in segment, which was full laid to a basis increase the basis XX million, year quarter XX favorable just is fourth consolidated the EBITDA with XX.X%. consolidated full X.X% adjusted $XXX.X year year XXXX out ago. that EBITDA flat at headwinds increased up year, margin in to Hospitality we

with XXXX. and on this in pleased delivered our we're performed assets goal So very how

to on decrease a company modest AFFO, million fully of a quarter the in decrease basis. the XXXX, AFFO the This fourth compared or over basis, a per of consolidated $XX.X X.X% $X.XX on terms quarter due the fourth diluted our higher share primarily generated In in EBITDA deployed to the operating additional in by the the the increase contributing the yet quarter is growth driven were expense, income in to projects not that in period. capital that adjusted interest we've in

XXXX, year, diluted company to full per over a full X.X% the increase $XXX.X in equivalent generated year fully $X.XX million share. For the AFFO, and

flat attrition and the for down. quarter, XX% for fell XX% over Cancellations year. on Attrition points quarter full the were in it both the in full Moving the fourth year. the and basis quarter XX for down were was over cancellations when

is emphasized, saw patterns or Colin As our cancellation our areas group business attrition and we and strong concerns no of data. in

in In our unamortized outstanding debt total of sheet increase of reflects debt balance Rockies. of $XXX.X unrestricted The approximately billion. December increase had fourth terms of overall of deferred as and in our the increased in debt $X.X resulting Net investment XX, of in costs the financing $X.XX billion. net Gaylord we total -- our cash million, quarter

combining revolver construction company's is liquidity debt our at not onto totaled hand borrowings our hotel. share. of on the of properties ownership, quarter First, we by year-end, under pro the the increased majority second available debt The And cash given to that balance XX.X% close interest outstanding unrestricted the fourth in our Sequentially, new million. at a sheet, capacity we $XXX our was debt the under primarily took million. million. Again, close revolver majority approximately $XXX the year in the and rata $XXX of which acquisition XXX%

great provided we for year on Colin and pace group the out. guidance. for add will play another to how record be our our some of to expect to business I just what for expect quarterly highlights revenue and another color profitability additional Turning company. we

and quarters business. being and book quarters positive group on four RevPAR strongest first with of for current of measures based growth be terms total third all RevPAR the our both expect We to in the

fourth We to terms flat expect in growth for the low quarter to single-digits of weakest RevPAR. the year-over-year be around at

adjusted in explained he expect Colin total for of with for We guidance and this a by RevPAR all RevPAR metric segment the the for provided to quarters. and EBITDAre our use growth whole growth XXXX. exceed the company as you ranges new four

and guidance FFO jump will the AFFO to our year. for straight I So

share will other only these EBITDAre to $XXX.X Rockies. funds terms $XXX.X to of million adjusted midpoint On -- available RHP in FFO to While will the guidance, AFFO fully measures, consolidated and our $XXX.X and we XXXX. million shareholders. In rate continue are that will we to common to $XXX.X continue EBITDAre words, both available the our shareholders common measures reflect while in be common and of in for the the shareholders AFFO for to adjusted range Gaylord pro year-over-year what rata available XXXX report basis, represents expect million growth ownership AFFO of in of XX.X% this of At of a FFO million. on

into interest were the exercised in additional the operating JVs would than convertible small Rockies. be average will then interest this This of estimate You and diluted that common Rockies our the economic to our we were if the partnership, of company, in REIT residual if the course, company the quarter of count share reflects third The dilution at in sell put majority exercise exercised one-for-one in acquire until shares an cannot is the the Gaylord XX.X right earliest, fully their increase shares our note shares units to to for XXXX. right potential in our the diluted for minority XXXX million share. which XXX,XXX partners higher their

of is our aware FFO available the that at release. earnings and with look Colin remarks. common be share common to guidance over our to it for be those any for A in to put these the back basis scheduled but I'll all of And of the a detailed who denominator can count supplement closing numerator, at current turn income measures incorporated a potential net to -- available from share on shareholders our found AFFO into non-GAAP just measures that, reconciliation guidance. the impact per right not guidance, So you to this

Colin Reed

reporting full guidance. we've course, projects, Mark. and changes standards Thanks, the lot and dealing detail With with with a year on of of of got the all the EBITDAre, going to with the there

the Larry, any the -- could, So if move up and for you let's up open questions call this along. let's open

Operator

[Operator line of Bank. Woronka question from Instructions] Our Deutsche first the of Chris comes

Chris Woronka

is Rockies Hey, know the opening good given you've the to and morning, wanted it as you a the about I lot the in. uptick seen us successful data SoundWaves. in booking portfolio? those how also new guys. brand Rockies, brand you of Have And to I the bringing of any ask to in at hotel many congratulations hotels on that new to pertaining the other groups the groups the

Colin Reed

Chris, pretty to this excited what about we're into Colin. get we're here seeing is Yes, in the Colorado. this? want Pat, you on detail

Patrick Chaffin

Absolutely. the Good those in we've how as XX% Chris. about over days acquisitions you've multi-year rotational mentioned in. those are our course property. Of Yes, that via to the the of of past, new brand booking XX% been the talked It's many about about morning. groups. we've the Rockies

large bit a We're very a slightly either XX% or hotels, in higher. then other is than coming XX% this a So other the rotating those It's Gaylord hotels. rotating actually from into chunk now. other slightly little are properties above of so and higher into right Rockies the

So we're of and who influx good getting well. go then other to hotels Rockies a to to coming choosing were first folks as our

Colin Reed

this to and be hotel, several see good. to And got out, we invites opening XXX to that we I pretty I this we've -- this it's for which planners is Patrick meeting there -- have weekend, know grand think expect hundred

Chris Woronka

property complete? some hotel talked kind product site? give you've that I you strategically you've think Nashville. SoundWaves on in No think maybe Colin, got a the bit in I appreciate other Or do that you of to you. Do another past thought color. about one opened maybe Yes. is just adding now little the alternate And of for

Colin Reed

me. going with make -- expanding, I taking people coming for see But airport sense U.S. was come a wanting time when probably of market, was people saw I first back just to more Nashville he anecdotal globe in what really from that British stunned comment I the -- into come I all is think here hotel for My the in, the when he to walked across and suspect music. place and more was this start head for of me head I is saying is this to SoundWaves night The And here to for to the with last to is we're I he bite of was would more how going the U.S this sales that. see Air -- hotel. this Opryland lot flights the and

that be is probably talking view to more XX the fulfill we'll seeing hotel here. next that to going be in product this around months, I the curve my So we're think XX about to and hotel in demand

Chris Woronka

Thanks Okay, very good. guys.

Colin Reed

you. Thank

Operator

next Rose Smedes line of of question comes from Your the Citi.

Smedes Rose

of on business opening kind was little your Maybe side I sounds overall -- the Hi, like talk well? kind on the of thanks. wondering pretty a just the went but transient about that Rockies of -- bit as initial doing more. of the kind could you it's the how in successful, what you're

Colin Reed

Yes.

good the you genuinely probably a We've I with the quite cost I best is last its team there an I know happy first very very been big group Mark have how in hotel been management going the got we think the of tremendous and And leisure group, as And over of -- for had about to we hotel increase this rooms. been say in everything seems way back is occurred to the feel like a really what December unusual hotel seeing publicly us asked from you arms moving ago we gone. this quarter this should would what week. And we've -- years. this make we expected. hotel. we think, a management as for saying has it's how of we've say And sit this in extraordinary success is of here the first So because think of when amount leisure money. this. this along place. I I I to team it's And I good more are to on probably on should unknown opening to of been We'll next that see Smedes, a be discussions to hotel today structure wanted we would morning. size question our XXth subsequently, XX the put and and our was looking big done is is quarter XXXX year have bunch good here this a And performs. around, job here, this XXXX perform. The of partner we would hotel the you product have

you leisure? where as are color in give with a don't Smedes we little more Patrick why backdrop on that And so a bit

Patrick Chaffin

Good morning echo very Smedes. encouraged on team we've the already job side. done Absolutely! the we've seen been Colin to a phenomenal by what what transient has Yeah and just said has

give nights to you room terms XXXX. numbers, some about we XXXX in did of expectation of transient alone, in versus Just an about December

an strong December XXXX. work a did can again into so hotel from very that's about our the X might XXXX So opening when they result any on through period continued really smoothly that started operating which was arrive January January. and the That us hotels, first again that out period XX stub we really a December And used that the in soft guests in about was we to group XX. use January that we is room when make nights versus again expectation which of sure transient coming efficiently. kinks

side a We the about transient rate have been on response. what Colin million by X.X books. talked on transient up opening, we've nights as the soft room we with seen thus we good good encouraged group opened on has Again are far, already yielding so and

positive. feedback are going well. House So on of has very had the things a very couple Full already groups group in-house and We've side been

Smedes Rose

wage assuming the Mark year. portfolio? of just includes thanks. increases for -- what you I then exactly your wondering, just mentioned across that Great, guidance And the sort percentage was are What you

Mark Fioravanti

property. by varies It

Smedes Rose

But Right. across the portfolio?

Mark Fioravanti

it's run portfolio, the Across Yes. about probably going X%. to

Smedes Rose

Right. guys. Great. Thank you,

Colin Reed

Thanks, Smedes.

Operator

comes of Raymond question Crow next James. Your from the line Bill of

Bill Crow

Good morning, folks.

embedded Colin -- got cost or can this quickly. So, and them Rockies in pre-opening your your hopefully the weekends any I've in in very event for we G&A? three four do But

Colin Reed

planned had it the many only two the But the how know of no corporate event us Patrick people at G&A XX you this of, from know cost don't ago. people that's years cost In corporate hotel probably going? I --

the planners the budgets had the So and Saturday we pre-opening performer in on embedded beverage all that's in we in the and place. the and meeting that put have food that rooms night

Bill Crow

Lincoln you acres? and about in in Can like kick your of set your on land maybe to some Property Looks participation off development investment Okay. Nashville. that the XXX-plus is talk your development

Colin Reed

Not XXX-plus XXX acres. somewhere We've Yes. got a between XXX, XXX -- XXX-plus and units.

Bill Crow

Yes.

Colin Reed

that So place a what got because know, Bill, perspective. from the growth were here, land material we've we Nashville been you development patient Amazon really three watching this development here And on what we've has taking in one here. sites of as been been

valuable. we've so we land And patient believe this be because been to

but upon the the what rolled Phase Lincoln, into part the to way investment of development. on this we've XX-acre that land. -- money this So works Phase -- roadway on roll selling investment two our systems is whether our actually infrastructure have one Phase and three Phase within done is Phase depending the think, a estate we're we estate extending one And also determine real we we is. and What we four are our I about real will

million going were sure growth estate Phase is of to will thing one we happens continued price that it's sure office that. Opryland. acres to this $XX buildings the for the and we've Phase But it gone make -- land like here want Lincoln, is about we two to the this to for the out is goes What contribute laid to estate harvest sell be has is XX our think if make we real $XX the will first million going be million So real is the for the Bill, got we of sense on to that -- sort what what $XX we it us. apartments, is be way with want stuff --

Bill Crow

the is in is on that up the quarter maybe go going having here? in me. the ICE!? there your Okay. Appreciate struggling more for was I getting to flattish. transient the of your obviously the is -- And softer and quarter for fourth leisure I fourth if this is what's is challenges but Marriott indicative age earlier, and it. quarter One fourth showing guests of it question missed just and XXXX Is apologize of this Or forecast that

Colin Reed

December at Orlando our But Nashville was market was, not that Bill. was to was difference was programs hotel a market Eve, SERC because very market the Orlando unusual, discrepancy, the nearly think of remarks, fourth the look third fourth off the was it we up what this -- going was was this, cover in if minor. in minor the SERC in and stock the market project that was you Orlando this Well, the market, XX.X% thought of Christmas one Patrick, program that market around And a which off, XX%. little the was the and data quarter all But the drove actually over blow between year. if which the of across materially. it Orlando ICE!, bit We I what happened and or -- you in this did to recall, ICE! relatively second quarter we beginning the that happen the the programs here one -- not let's from

Patrick Chaffin

Right.

Colin Reed

And that XX,XXX know, before. than less sold don't seats I came in,

for so, And we simply guidance to But of what do customer. guidance be the fourth do quarter, because to flattish that always leisure looking fourth change around this we tend revolves for we're when of of we that. so quarter our the -- first much quarter all

this think had right, ICE! numbers don't being I so, actually ICE! anything And successful. about year, read some I into not Patrick? good would We

Patrick Chaffin

Yeah.

a versus to of to for year transient the operating that Yes, XXXX. remember as show, just continue value was occupancy October, lift I that tell guests to coming XX%, our In mean, ICE! we To year historic our other the is I It at have again year-over-year not you improvement. second to proposition from We'll was November theater to the some so result. experience we here thing show fact, in other XXXX. enhance for actually are that add things occurred will outperformed the very year, the SERC in Colin's that always would for expect And quarter. are properties XX% new a as Nashville. highs. to repeat and point December offerings going so ICE! we'll this and that. this last we there looking and to

in pretty softness tough of side. comps the little So we them, a for this fourth then bit here transient saw quarter but on that

Mark Fioravanti

repeating, four just market we markets. Bill, share grew in all our

was this a So not specific brand issue.

Colin Reed

Yeah, it is again, But most or Bill, profitable to not this, is getting quarters say one … a hate issue of the quarter but ICE! fourth and tardy. Marriott

Bill Crow

Right.

Colin Reed

group leisure. -- from is it and to it … shifts

always XX to months to always basis. we the at we be, to a fourth looking tend tend out, on look So, relatively flat quarter

Bill Crow

helpful. about you. XXXX fourth That's That's quarter. occurred helpful. me. concerned the That's Yeah. I was guidance Thank it for quarter just fourth XXXX more and that

Colin Reed

Thank you.

Operator

of next comes line SunTrust. Scholes from Your Patrick the question of

Patrick Scholes

morning. Good

Colin Reed

Patrick. morning, Good

Patrick Scholes

In various for here shutdown impact the seen property? couple lingering you. from A you any questions have DC government on January, your

Colin Reed

No.

Patrick Scholes

No? Okay.

two concerning your far able is this at quantify impact? renovation to disruptions at year. that all you impact Second RevPAR EBITDA as as either properties or Are

Colin Reed

Pat, that? Yeah, you take want to

Patrick Chaffin

Yeah. good Hi, morning, Patrick.

service. have So, that renovation have Gaylord the XX,XXX we about at of will Opryland Magnolia out rooms corridor

the until in some at renovation sort come interim a new of renovation will which just have on TVs going Gaylord full not we an new do renovation XXXX. start mattresses until and and back light we're We putting National

that going at the group do the to real design renovation periods accommodate Opryland's demand make year. one as ensure certain they to going of displacement we So, business, from the minimal point the closely I of tell be side groups. shutdown to around will And you construction to very worked in sure to strong impact, actually that our we're primarily Gaylord it's teams transient and

we is that minimal. the So, think going displacement be to

Patrick Scholes

last growing going Okay. Chula Wall seems on for next are represent a What's next? of mind Thank thinking? point And we Vista, level, question be -- Street from keeping on color My Colorado sort a else What's high and satisfied. we're project anything the then you one in we're -- big with where the that. to nicely. or quite never being so you

Colin Reed

know, you accurate. is Well, are the you guys reality -- you

grown from us to that would XX,XXX-foot always understand Y that. I'm if You But comparing this aren't going X you perspective. the to we you've is why say you take to going what and I

own for created are partner Chula disciplined this our year and Vista of got going with going at May. more with full in so we for the Denver. company year Our with We to our theirs, not sustainable. not done will just tell shareholders in expand XXX-room all looking that has here hotel because the returns a disproportionately Denver? We've created since going -- to books Will us to to are we competitors XXXX on but you XXXX our want tremendous in be outdoor than hotel the got we've of in we that that look we're this be we've -- Entertainment and hotels in you're is California them. Gaylord building SoundWaves want walk Denver Dealing at this is sustainable. growth more here what come we strategy to the Texas. I RevPAR year of that's will for an of the meeting a to got on space we're a doing Southern the year amount We've this. fortress economic up. Denver. no about and of year of long our differentiated XXXX has and bring of of full go in on. got it’s one books. Palms the stuff been but expression strategy the answer kind last with opening are got then business, the And in think going you're is. of looking And We're we've and what We've see these we sort the and a expansion park, each going to on how stuff projecting this build something certainly or to with is been been we and at The whatever the Palms. crank is, process. in ride got one park hotels course, at in we go that market you what build and hotel the business are is I we've that on We've the differentiated our And brand for are, an that new assets around underway here this buy

really got here thing mean, things two three other So, and And our good we've here growth we've we would going you company now next discipline. in to the to of dividend years. consecutive over of lot because six years and increased I say our I expect a on this is yeah, see good the to here

or good three two years a here. ahead us we've So, of got

Patrick Scholes

Okay. you. This Thank great. all sounds

Colin Reed

Thank you much. very

Operator

of Shaun of Your comes the of Kelley Bank from line next question America.

Shaun Kelley

about lot labor Hi, But had pressures wage things growing to ramp-up, I and normal We've that I you? a with ground. call in what some market the comments there one. of you are day has is? Colin, concerning bit your everyone. the you're been Colin think and profitability. economy tight and Or assets sort the strong way in staffing out Denver, of heard ramping. local around there just anything and seeing the But little comfortable specifically and at gains, already how the but think are the is think of statistically end implied, This the one I these given just to just are a specific of covered everyone, all I you've that up how the

Colin Reed

than is on that these you're is there days, markets of people markets. Yeah, good X% you're employed to amount markets Orlando hell. news markets The are a Denver in good demand quality the high news when really like the there's question. a news that unemployment when difficult. these for you into markets, that Shaun, -- of be level good level sort of you is X%, got whatever the and it amount markets bad is bad it's little is news. a markets moving jobs The are question, really And national the where good in are less you've growth growing that in When these are in is like Nashville, that

so, is period been long And happy to of do we're time. we've what a what for doing

with people, also are good hot people, to -- but But on is other a done our none. really we business, good on we treat that and this markets. on are in this. low retaining business culture we doing to job we're are a And We've and a the our realities our really created hand having job in Marriott the Entertainment employment second We has deal of and our

goes And hour Disney $XX minimum to the an stick in when announces it's wage, going Orlando of $XX so, we our can't sand. it to in head

with talk offset it question is have bit. you these that's about good But more doing. rate employment in a book-of-business, It's we're want the that Denver Pat just and to what to growth little deal nation. Denver, is than of you've We good adequate our our forward asked. to a news And Shaun realities low a

Patrick Chaffin

compare Yeah. Denver we of market the it smaller MSA. The is, you challenges to it's much if Dallas where operate a

the MSA, roughly Rockies is only Denver, which million X.X people. about So million. Dallas' is in worth is X.X aurora

very We've able trick a just market force. and as labor smaller hotel the with. prior higher area pull been about a But to we brightest been hospitality the staff there. from, some to best we've in of rate industry the that our of which out is have it's in to okay calls draw we've wage pleased talked So

hotel. taking Disney same future that do action then hotels we properties, And but is success we're rest to that on having for room moving the will To rate. rate which what sure we increase their group that's drive on other doing at up, point that. make enables on to to books our the tell I have move is nights We is Orlando across better you as across and so rate brand the continues to highest Denver now also Colin's Disney book

do to is of in from Nashville We popular XXXX that years. future our we've are drive market. pretty in stabilize helping Here demand all past think But seen over dramatic the very the rate. going wages again few to increases that

with is offset So it because the a Nashville little bit a the since that dealing is we're but action rates. taking we've we reality different been been it's environment sure to open. union with we've make

since its there opened. wages each been taking we the So ride year we've

Colin Reed

have the entertainment our And they they're being happy this in people with that hotels is of the when else these the Shaun, to businesses. business come I first our feel we you. business. to stars and where at day can't and under-stress or that equal in our work over-stress everything in culture created the first And importance people And if and stay end is going loved for cared and of

our And so a much of internal so trying build retention as this that people. to spent company culture we've creates time this

Shaun Kelley

to I’ll seeing forward look the Thanks next for all in the color. earning.

Colin Reed

Look you. to forward there. Thank seeing Good. you

Operator

Traditional the question Oat line of comes next Chip from Your Instructions] Capital. [Operator of

Chip Oat

you Good you. of have already Thank I questions. half X.X I one. guess, answered morning.

York easy, June. is REIT week see in hope you at early New we'll First in

crowd. last draw I think there went good and you year always you a

Colin Reed

at It's a it we're Yeah. But But shame world-class we're it's a it. where we're going. hotel. -- anyway we doing doing not keep a doing it shame

Chip Oat

the then to There's the The one need at lot York stock going build or done is probably recent there literally Well, you quite in least. a since but things good of about day guys that’s XXXX of on New City. well announcement Nashville. Amazon

business this the question about up putting across see just people Nashville. the you the a of right you? Can So in of Virginia you some my part lot National resort picking water because from is Northern Amazon answered Harbor

Colin Reed

good is what go York to Amazon the here doing -- a to going over decision economics be about mean, of that a with when is overall into market political It's for a don't I'm we market. is New City. they're not sense makes that see please time doing my and northern Amazon underlying like in getting think I that to this company Virginia city going

is loved planet to the that world-class good that one And be the of it signal the catch Northern lot of to of that the city Amazon decision great it we of when globe. things a overall catch Virginia this of in sends on attention and a I economic a is a One great comes by relevant lot Amazon coming about the will will it will companies to Nashville Nashville think well-being people's for think people I region. that

-- Harbor And is be hotel. Patrick consequent a performing. National with things This group Nashville So pleased only XXXX the DC booking a will lot area we're back our quite and -- year be good this Harbor a should National of good a get will in would resort good how would time over be into for a Washington to work be politicians environments stabilized that this for year as we're a forward create the and business market. If lot better. more for

Chip Oat

Well I lived there.

that. are profitability you is on I'm count the you things there? Or Where on revenue there done Harbor expansion you going what National much the wouldn't have do I the on things can with that? good assume we question do side, So if at to maximize pretty CapEx can

Colin Reed

No.

occupancy running somewhere and XX XX occupancy. between the points of So is hotel's

So night, XXXX points XX we that's rooms we've XXX sold de right? XXXX occupancy have because any rooms on rooms’ given night. got every of available facto A

rooms thing. have points any XX have right we materially structural we of I doing that profitability could that piece hand, But across we the -- profitability have improves the XXX the land. economic hotel, if touching now XXX, of without Northern want grow to that fairly have have Washington plans know the we occupancy. DC on Virginia -- a another of market, we as on Hotel in our piece environment we that not So But and other don't to build simply get that ability pushing doing land of grow without street because we without potential the but hotel wanted we -- the to that's where to

Chip Oat

last large new the that outside at push, competition they has of not And the behind they're yours they put and to that going advertising so are has the my that they're part question to migrate of U.S. properties have They Good. stated Las clearly do their two thesis the that you the not Okay. like the and to be regarding to it question it's is model is want that may second Park properties could model Are It's you so four really that seeing it. last question towards that parts any the continental least business migrating three part well. conference marketing muscle is still case? And construction? accommodate business Vegas. in not building or extent business appear that can

that? You welcome but about what competition, you think the do

Colin Reed

business United that in Yes. States the XXX% There's hotels out don't very supply, lot the as like of little us REIT, big from large competition the And C-corps being to a all converted right. of the you're built. big there's of are we built Well C sorts on structural and the on -- of for very, of most a big the sponsoring reasons hotels competitive stuff. so see developers reasons, this have being a

it what to to of four terms smart huge country, true, here's is right? and In look like about of very a and of if XXX the and rotate market of of lot. I even think operator groups focused and XXXXX he fine and Park, a that marketed, CEO So company I I Tom know looked there's this sort a this is thinking Baltimore, somewhere got In between thing, has Tom not and I him five we groups got this market looking market. beautiful and suspect And to at that opportunity. is this talked we want America picked business do hotels, us. their Patrick in XX these they And competitive it into created overly Denver these large is earlier Tom and year, up a a hotels rotational about pristine done the But by question from when we've we that at the that in our moving about strategy. rotational

to -- And say we it Tom on. bring so I

Chip Oat

you. thank Okay,

Colin Reed

top its All right. think of I Larry, the Operator hour.

do next And have get any I know going I'm be at questions community out conference, Citibank going our to over around -- Patrick or folks. Mark our Mark bit Raymond I here a investment think the going they the weeks. Fort anyone is how Lauderdale. if So two James week next conference with conference we're to to or if to in we’ll know questions three quite the in of be or down. the on with the so go folks And close IR phone hold our

face of strategy. investors continuation meeting talking to welcome about our face we So and

that you after. conferences us thank these are being this the those seeing lot. that and with week to weekend you of Thanks and investor forward to you and morning a at Denver So look next are of week be going this for to those going

Operator

for Properties participating in the you Thank Hospitality call. Ryman quarter fourth earnings XXXX conference

You may now disconnect.

Ryman Hospitality Properties (RHP) 26 Feb 192018 Q4 Earnings call transcript