Ryman Hospitality Properties (RHP) Q3 2025: Group Room Bookings Up 9% as Corporate Demand Outpaces Association Recovery
Ryman Hospitality Properties’ third quarter results highlight a resilient group travel recovery, with group room bookings for all future years up 9% year-over-year and average daily rates (ADR) at all-time highs. The company’s hospitality and entertainment segments navigated a volatile macro backdrop, with corporate group demand offsetting government sector softness and new supply pressuring downtown Nashville venues. Management’s outlook remains constructive into 2026, underpinned by strong on-the-books business and continued capital investment, though persistent cancellation activity and government-related risks warrant close investor attention.
Summary
- Corporate Group Outperformance: Corporate bookings drove group room pace to record levels, offsetting government sector cancellations.
- Entertainment Supply Headwinds: Downtown Nashville venues faced volume softness amid a surge in new bar and restaurant openings.
- Visibility into 2026: On-the-books group revenue and ADR for 2026 and 2027 position RHP ahead of prior-year pace, supporting management’s bullish long-term view.
Performance Analysis
Ryman’s same-store hospitality segment delivered results at the high end of expectations, buoyed by short-term corporate group pickup and resilient leisure demand. While corporate group room nights declined year-over-year, the drop was half the magnitude seen in Q2, and group guests continued to spend at healthy levels, with contribution per group room night exceeding forecasts. Food and beverage outlet sales per occupied room rose nearly 13%, led by recently renovated properties such as Gaylord National and Gaylord Rockies, both of which posted third quarter revenue records.
The leisure segment also contributed, particularly at Gaylord Opryland, where leisure room nights increased over 5% year-over-year. Entertainment business revenue reached $92 million for the quarter, though downtown Nashville venues underperformed due to new supply, prompting a downward revision to the segment’s full-year adjusted EBITDA guidance midpoint. Balance sheet strength remains a differentiator, with $1.3 billion in available liquidity and net leverage at 4.4x pro forma adjusted EBITDA.
- Group Room Mix Shift: Decline in corporate group room nights was less severe than Q2, indicating improved demand stability.
- Leisure Demand Recovery: Transient ADR growth in Nashville’s upscale and luxury segment turned positive for the first time since February, signaling a rebound in high-value travel.
- Entertainment Margin Compression: New supply in downtown Nashville pressured volumes and led to a narrowed full-year outlook for the entertainment segment.
RHP’s ability to drive rate and group booking pace, despite macro and sector volatility, underscores the strength of its asset base and sales execution.
Executive Commentary
"Our same-store hospitality portfolio meaningfully outperformed the industry in the third quarter, achieving a rev par and total rev par index relative to our marriage-defying competitive set of approximately 141 and 195% of fair share."
Colin Reed, Executive Chairman
"As I mentioned earlier, the group rooms revenue we have on the books for 2026 for same-store hospitality segment is pacing approximately 8% ahead compared to the same time last year for 2025. From a mixed perspective, corporate group bookings are pacing ahead of association group bookings. Should this trend continue, we would expect it to be a modest tailwind for group outside-the-room spending levels in 2026."
Mark Fioravanti, President and Chief Executive Officer
Strategic Positioning
1. Group Business as Core Growth Engine
RHP’s group-focused hospitality model, which prioritizes large-scale meetings and conventions, remains its primary revenue driver. The sales team’s ability to book future group room nights at record rates, with corporate demand outpacing associations, positions the company for continued rate compression and high-margin ancillary spend. Elevated cancellation activity, mainly from the government sector, was offset by robust in-the-year bookings and strong late-stage lead volume.
2. Capital Deployment and Asset Enhancement
Ongoing and planned renovations across the Gaylord and JW Marriott portfolios are central to RHP’s strategy of driving rate and guest spend. Recent investments at Gaylord National, Gaylord Rockies, and Gaylord Palms delivered above-average outlet sales growth. The company is accelerating materials purchasing and project starts to optimize return on invested capital, targeting mid-teens unlevered IRRs on projects like Category 10 Las Vegas and the upcoming sports bar at Opryland.
3. Entertainment Platform Expansion
The Opry Entertainment Group (OEG) continues to diversify with new venues and international brand-building, as evidenced by the Royal Albert Hall event and Las Vegas Category 10 development. However, the near-term absorption of new live entertainment supply in Nashville is a headwind, prompting a focus on long-term brand reach and market expansion, including potential international moves.
4. Balance Sheet and Capital Allocation Discipline
Liquidity and leverage discipline remain a cornerstone, with $1.3 billion in available liquidity and a commitment to fund capital projects and dividends from operating cash flow. The company is balancing internal investment with opportunistic acquisitions, but signals a near-term preference for deploying capital into existing assets.
5. Market Positioning in Nashville and Beyond
RHP’s assets benefit from Nashville’s structural growth, with airport and stadium expansions supporting long-term demand. The company’s land holdings and development pipeline in Nashville position it to capitalize on surging country music popularity and major event-driven tourism.
Key Considerations
This quarter, RHP demonstrated the resilience of its group-driven model and the benefits of capital investment, while navigating sector-specific and macro headwinds.
Key Considerations:
- Corporate Demand Momentum: Corporate bookings are pacing ahead of associations, supporting higher ADR and ancillary revenue opportunities into 2026.
- Entertainment Segment Transition: New supply in Nashville is a near-term drag, but investments in Category 10 and Opry 100 expand the brand’s reach and future growth avenues.
- Cancellation and Revaluation Trends: Elevated cancellations, mainly from government clients, are being mitigated by strong new bookings and disciplined margin management.
- Capital Allocation Focus: Internal reinvestment in asset upgrades is prioritized over external acquisitions, given the superior return profile and integration benefits.
- Macro and Regulatory Volatility: Government shutdowns and tariff uncertainty remain watchpoints, particularly for group business and government-related bookings.
Risks
Persistent government sector cancellations, ongoing macro volatility, and new entertainment venue supply in Nashville represent material risks to near-term performance. Extended government shutdowns could further dampen group demand, while competitive pressure in downtown Nashville may constrain entertainment segment margin recovery. Tariff and regulatory uncertainty continue to create booking and cancellation unpredictability, requiring close monitoring into 2026.
Forward Outlook
For Q4 2025, Ryman guided to:
- Comparable same-store group rooms revenue and continued strength in holiday leisure ticket sales.
- Entertainment segment adjusted EBITDA midpoint of $112 million for the full year, reflecting a 6% annual growth rate.
For full-year 2025, management maintained guidance:
- Adjusted EBITDA RE range of $772 to $802 million.
- AFFO per share of $8.00 to $8.38.
Management highlighted several factors that shape the outlook:
- Group booking pace for 2026 and 2027 is running 8% and 7% ahead of prior-year levels, with ADR growth in the mid-single digits.
- Major capital projects, including the Opryland Sports Bar and Category 10 Las Vegas, will drive incremental returns in 2026 and beyond.
Takeaways
RHP’s third quarter confirms the durability of its group-centric business model and the strategic value of continued capital investment.
- Record Group Booking Pace: On-the-books group revenue and ADR for future years are at all-time highs, providing strong forward visibility and pricing power.
- Entertainment Segment Reset: New supply in Nashville is a drag, but management is leveraging brand strength and market expansion to reposition for future growth.
- Watch Government and Macro Risks: Investors should monitor cancellation trends and the pace of government sector recovery, as well as the impact of new venue supply on entertainment margins.
Conclusion
Ryman Hospitality Properties delivered a quarter marked by robust group demand, record booking pace, and ongoing asset reinvestment, even as sector-specific headwinds and macro volatility persist. Management’s constructive outlook for 2026 is underpinned by strong on-the-books business and disciplined capital allocation, but investors should remain attentive to government sector risks and entertainment segment competition.
Industry Read-Through
RHP’s results reinforce the recovery trajectory for group-focused hospitality REITs, with corporate demand and ADR strength setting the tone for 2026. The surge in new entertainment supply in Nashville highlights market saturation risks for live venue operators, while the ability to drive rate and ancillary spend through asset upgrades is a key differentiator. Group-centric hotel portfolios with strong sales execution and diversified demand sources are best positioned to weather macro and sector-specific volatility.