Ryman Hospitality Properties, Inc. (NYSE:RHP) Q4 2022 Earnings Call Transcript

Patrick Chaffin: Yes. I would say that what we see as far as recovery has been most pronounced in technology, in medical and areas like that. Corporate has come back roaring and we’re very pleased with what we see. From a mix perspective, I’m actually pulling up the actual numbers right now. So give me just a second. But as we look at this next year, we are a little bit more heavily weighted towards our corporate, but it’s pretty consistent with what we saw in 2023. We do think that from a…

Colin Reed: Consistent what we saw in ’23, you said.

Patrick Chaffin: I’m sorry, consistent with what we saw in 2022. Thank you for correcting me. But I would say that in the year for the year is very promising from a corporate perspective. So while we have a little bit more in corporate on the books as of right now, we would expect that to continue to improve as we move through 2023.

Mark Fioravanti: Smedes, the one thing to keep in mind, when you look at the business on the books for ’23, about 3/4 of that business was booked pre-2022. And so as we roll forward ’23, ’24 to ’25, you’re going to see those older room nights burn off and newer room nights that are at these higher rates come on. And so that will be a nice tailwind for our business from a rate perspective in the group segment.

Smedes Rose: Okay. Thank you. And then I’m sorry if you said this, but what do you see capital spending for the year on the major — and maybe could you just line out the major projects that you’re working on? You mentioned the Rockies?

Colin Reed: You got that, Jen?

Jennifer Hutcheson: Yes. We — as Mark mentioned, one of the bigger projects we have going on right now is at the Rockies, a couple of projects going on there with a new pavilion and the imagining of the Grand Lodge and creating more usable group sellable space there along with food and beverage. I think our estimate for capital is about $130 million this year, all in, including growth and maintenance, and that would include the contribution to FF&E reserves that are obviously linked to revenue. So as those grow, those will continue to grow as well.

Patrick Chaffin: Yes. The only thing I would add to that is we’re doing a lot of — we talked about this in our prepared comments a few minutes ago, we’re doing a lot of work around food and beverage. We continue to see food and beverage is a massive opportunity for our brand going forward. And so we’re investing in our old Hickory steakhouses at Gaylord National and Gaylord Palms. We’re renovating spaces at Gaylord Palms, like our Osceola ballroom, which is 50,000 square feet. And then from an ESG perspective, we’ve got a pretty sizable investment going into solar panels that we’ll be putting on top of the convention center, at Gaylord National, be one of the largest projects in the nation. And we think a really bold statement as far as our priority on ESG and doing things that help the environment long term.

Jennifer Hutcheson: And let me clarify that number. It was off $100 million, it’s $230 million when you’re including growth so…

Colin Reed: Mark, on the entertainment?

Mark Fioravanti: On the Entertainment side, Smedes, Ole Red Las Vegas is under construction. And then we are renovating the W as well as making some enhancements at the theater in Austin, Texas. So those two projects combined are probably going to be in the $50 million, $60 million range this year.

Smedes Rose: Okay. And then just one last question on Ole Red in Las Vegas. Is that the kind of menu you can start preselling events at this point, I guess, to corporations or social stuff? Or is that not how that piece of the business?