Q4 2024 Ryman Hospitality Properties Inc Earnings Call

February 21, 2025

And Reed Executive Chairman, Mr. Mark Fioravanti, President and Chief Executive Officer, Ms. Jennifer Hudson, Chief Financial Officer, Mr. Patrick Chaffin, Chief operating Officer, and Mr. Patrick Moore, Chief Executive Officer, Opry Entertainment group.

This call will be available for digital replay the number will be 807 231517 with no conference I'd required.

Jennifer Hudson: At this time all participants have been placed on a listen only mode. It is now my pleasure to turn the floor over to MS. Jennifer Hudson Ma'am you may begin.

Jennifer Hudson: Good morning, Thank you for joining US today. This call may contain forward looking statements as defined in the private Securities Litigation Reform Act of 1095, including statements about the company's expected financial performance any statements. We make today that are not statements of historical fact may be deemed to be forward looking statements.

Speaker Change: I stood last night in the arms of a girl from Louisiana I'm out on the highway and my thoughts are still with her It's a strange combination of a woman and a child Strange as it may seem, suddenly from a hundred miles I saw a man I'm out on the highway and my thoughts are still with her It's a strange combination of a woman and a child Strange as it may seem, suddenly from a hundred miles I saw a man I saw a man I saw a man I saw a man I saw a man I saw a man I saw a man I saw a man

Jennifer Hudson: Words, such as believes or expects are intended to identify these statements, which may be affected by many factors, including those listed in the company's SEC filings and in today's release.

Jennifer Hudson: The company's actual results may differ materially from the results, we discuss or project today.

Jennifer Hudson: Will not update any forward looking statements, whether as a result of new information future events or any other reason.

Jennifer Hudson: We will also discuss non-GAAP financial measures today.

Jennifer Hudson: We reconcile each non-GAAP measure to the most comparable GAAP measure in exhibit to todays release.

Colin: I will now turn the call over to Colin.

Colin: Thanks, Jen and good morning, everyone and thank you for joining US today as you saw from our earnings release call Tonight, Our fourth quarter results and consequently, our full year results were marginally below the guidance ranges. We provided in November primarily Q2 factors that impacted our same store hospitality portfolio.

Colin: In the last two weeks of December.

Speaker Change: This was a little disappointing, but we were extremely delighted with the bookings production, which we see as an endorsement of our long term product transformation Mark is going to talk about the quarter in more detail in a moment.

Before that before I hand off to him I wanted to take a step back and remind you all of the strategic rationale for a multiyear transformational capital program as we articulated during our Investor day last year. We believe we've developed a strategy that gives us a unique advantage over other.

Speaker Change: <unk> rates and as a consequence, we're committed to the long term positioning of our hotel assets to capture more of the extremely valuable premium group customer base and one of the key Differentiators of our business model is the ability to drive at least mid teens Unlevered returns on <unk>.

Speaker Change: Incremental growth investments in our portfolio.

Speaker Change: Ma'am you may begin.

Speaker Change: It is clear from our results over the last several years that our focus on creating value for our customers is generating superior returns for our shareholders, we have more opportunities in front of us than ever before.

Speaker Change: Good morning, Thank you for joining US today. This call may contain forward looking statements as defined in the private Securities Litigation Reform Act of 1995, including statements about the company's expected financial performance any statements. We make today that are not statements of historical fact may be deemed to be forward looking statements.

Speaker Change: Our hospitality business, we're making significant investments in Gaylord Opryland, and Gaylord Rockies to attract this incrementally higher rated corporate group business and in juice and juice higher outside of the room spending by expanding food and beverage capacity and Sellable space.

Speaker Change: Words, such as believes or expects are intended to identify these statements, which may be affected by many factors, including those listed in the company's SEC filings and in today's release.

We have completed the lobby and rooms renovation of the Gaylord palms, which is now essentially a brand new product in fact, Mark and I were there yesterday with our board and I got to tell you is without question. The best the best piece of work I think we've done as a company it really has.

Speaker Change: The company's actual results may differ materially from the results, we discuss or project today.

Speaker Change: We will not update any forward looking statements.

Speaker Change: Whether as a result of new information future events or any other reason.

Speaker Change: We will also discuss non-GAAP financial measures today.

Speaker Change: Reconciled each non-GAAP measure to the most comparable GAAP measure in exhibit to todays release.

Speaker Change: <unk> and in 2025, we will embark on renovating the rooms at the Gaylord Texan.

Colin: I will now turn the call over to Colin.

Speaker Change: Entertainment business, our major construction projects adjust back online and the country music and lifestyle category is stronger than ever category 10. The venue. We just start we designed under our brand partnership with Luke Combs opened its stores in early November followed by new rooftop that open.

Colin: Thanks, Jen and good morning, everyone and thank you for joining us today.

Colin: As you saw from our earnings release last night, our fourth quarter results and consequently, our full year results were marginally below the guidance ranges. We provided in November primarily due to factors that impacted our same store hospitality portfolio in the last two weeks of December and this was a little disappointing, but we were X.

And just this week and the transformational rooms, and public space renovation of the W. Austin Hotel was completed at the end of last year.

Colin: Streamline delighted with the bookings production, which we see as an endorsement of our long term product transformation market is going to talk about the quarter in more detail in a moment, but before that before I hand off to him I wanted to take a step back and remind you all of the strategic rationale for a multi.

Speaker Change: Furthermore, last month, we made a strategic investment in a leading independent music Festival business Southern Entertainment, which creates a scalable platform for live music experiences more broadly and enables us to connect with even more country music fans and we're excited about the brand activation opportunities.

Colin: Transformational capital program as we articulated during our Investor day last year. We believe we've developed a strategy that gives us a unique advantage over other hospitality Reits and as a consequence, we're committed to the long term positioning of our hotel assets.

Speaker Change: Behind <unk> hundred, which we think will pay dividends in the years to come.

Speaker Change: No question some of these investments disruptive in the near term. However, we remain awfully encouraged by the pace of bookings and the way the meeting community is responding to our capital plans, thus, resulting in record number of group room nights on the books for all future years in our hotel business.

Colin: Capture more of the extremely valuable premium group customer base.

Colin: One of the key Differentiators of our business model is the ability to drive at least mid teens unlevered returns on incremental growth investments in our portfolio. It is clear from our results over the last several years that our focus on creating value for our customers is generating superior returns for our shareholders.

Speaker Change: And the enthusiasm for the country lifestyle segment in the U S and globally.

Speaker Change: <unk> tremendous our customers are embracing our investments reinforcing our conviction in our long term strategy.

Colin: We have more opportunities in front of us than ever before in our hospitality business, we're making significant investments in Gaylord Opryland and Gaylord Rockies to attract this incrementally higher rated corporate group business and in juice and juice higher outside of the room spending by expanding.

Speaker Change: Now finally, let's not overlook the incredible results, we were able to deliver in the full year of 2004. Despite the disruption I just mentioned consolidated revenue growth of 8% consolidated adjusted EBITDA growth of 10% and <unk>.

Colin: Food and beverage capacity and Sellable space we.

Speaker Change: Adjusted funds from operation or <unk> growth of 12%.

Colin: We have completed the lobby and rooms renovation of the Gaylord palms well.

Speaker Change: Last comment one last comment I would make.

Colin: Which is now essentially a brand new product in fact, Mark and I were there yesterday with our board and I got to tell you is without question. The best the best piece of work I think we've done as a company. It really is tremendous and in 2025, we will embark on renovating the rooms at the Gaylord.

Speaker Change: For those of you, who intend who attended our Investor Investor Day last year.

Speaker Change: That I referenced just a couple of minutes ago, you may recall, we project. It out a few years to show you. What we thought was possible as we as we transform our physical assets. We said at the time that we felt our consolidated strategy could yield adjusted EBITDA.

In our entertainment business, our major construction projects adjust back online and the country music lifestyle category is stronger than ever category tend the venue. We destroyed we designed under our brand partnership with Luke Combs opened its stores in early November followed by new rooftop.

Speaker Change: <unk> in the range of $900 million to $1 billion in 2027.

Speaker Change: Now as we sit here today, despite the political upheaval that we're all witnessing high interest rates.

Paul that opened just this week and the transformational rooms and public space renovation at the W. Austin Hotel was completed at the end of last year.

Speaker Change: High inflation rates, we believe that our strategies and capital projects have us well on track to achieving the goals, we set out a year ago. The future has never been brighter and we appreciate your ongoing support and with that I'll turn it over to Mark to talk you through the quarter.

Colin: Furthermore, last month, we made a strategic investment in a leading independent music Festival business Southern Entertainment, which creates a scalable platform for live music experiences more broadly and enables us to connect with even more country music fans and we're excited about the brand activation opt.

Mark: Thanks, Colin and good morning, everyone.

Mark: I'm going to focus my remarks on the fourth quarter, and then I'll hand, it over to Jennifer to discuss our guidance for 2025 as well as a review of our financial position.

Colin: Attunity behind a pretty 100, which we think will pay dividends in the years to come.

Mark: For the fourth quarter consolidated revenue increased 2% compared to last year.

Colin: No question some of these investments disruptive in the near term. However, we remain awfully encouraged by the pace of bookings and the way the amazing community is responding to our capital plans, thus, resulting in record number of group room nights on the books for all future years in our hotel business.

Mark: Consolidated adjusted EBITDA increased 1% and <unk> increased 4%.

Mark: As Colin mentioned these results were below our expectations and the expectations implied.

Mark: The full year guidance ranges.

Mark: Leisure demand, primarily at Gaylord Texan and to a lesser extent Gaylord Opryland did not materialize as expected during the peak holiday period in the last two weeks of December.

Colin: This and the enthusiasm for the country lifestyle segment in the U S and globally.

Colin: Is tremendous our customers are embracing our investments reinforcing our conviction in our long term strategy now.

Mark: Historically, our holiday transient business is highly concentrated in those last two weeks account for nearly 40% of leisure room nights in the fourth quarter and nearly 40% of total life admissions.

Colin: Now finally, let's let's not overlook the incredible results, we were able to deliver in the full year of 24. Despite the disruption I just mentioned consolidated revenue growth of 8% consolidated adjusted EBITDA growth of 10% and <unk>.

Mark: Additionally, the booking window is very short with approximately 60% of sales occurring within seven days of travel.

Mark: When compared to last year fourth quarter leisure room nights at the Gaylord Texan were down 19% and at the Gaylord Opryland, we're down 6%.

Colin: Adjusted funds from operation or <unk> growth of 12%.

Mark: This decline occurring.

Mark: Occurring during those last two weeks.

Colin: My last comment one last comment I would make.

Mark: Our forecast anticipated some year over year softness in those markets as we know our older ice themes like Rudolph historically underperform, our newer themes like the polar express, but ultimately we were surprised by the magnitude of the underperformance, which we attribute to some combination of consumer price sensitivity normalization of post COVID-19 demand.

Colin: For those of you, who intend who attended our Investor Investor Day last year.

Colin: I referenced just a couple of minutes ago, you may recall, we project it out a few years to show you. What we thought was possible as we as we transform our physical assets. We said at the time that we felt a consolidated strategy could yield adjusted EBITDA.

Speaker Change: Relative to 2023 and general macroeconomic uncertainty.

Speaker Change: Shortfall drove the majority of the variance to the midpoint of our prior guidance range for adjusted EBITDA, Our EBITDA sorry for this for same store hospitality.

Colin: In the range of $900 million to $1 billion in 2027.

Colin: Now as we sit here today, despite the political upheaval that we're all witnessing high interest rates.

Speaker Change: Now, let me share several bright spots in what was a strong quarter.

Colin: And high inflation rates, we believe that our strategies and capital projects have us well on track to achieving the goals, we set out a year ago. The future has never been brighter and we appreciate your ongoing support and with that I'll turn it over to Mark to talk you through the quarter.

Speaker Change: The same store hospitality business generated fourth quarter revenue of approximately $496 million, the second best quarter ever and second only to the fourth quarter of last year.

Speaker Change: ADR increased approximately 2% compared to last year to $265, a new quarterly record with growth in both group and leisure right.

Mark: Thanks, Colin and good morning, everyone.

Mark: I'm going to focus my remarks on the fourth quarter, and then I'll hand, it over to Jennifer to discuss our guidance for 2025 as well as a review of our financial position.

Speaker Change: As has been the case all year long banquet and AV revenue in the quarter was strong up approximately 5% compared to last year with higher contribution per group room night.

For the fourth quarter consolidated revenue increased 2% compared to last year.

Speaker Change: Both Gaylord Rockies and Gaylord national achieve milestones in the fourth quarter.

Mark: <unk> adjusted EBITDA increased 1% and <unk> increased 4%.

Speaker Change: The Rockies delivered record revenue in the month of December driven by strong ice performance in PON and the positive reception to the completely transform Grand Lodge, and our new food and beverage offerings.

Mark: As Colin mentioned these results were below our expectations and the expectations implied by the full year guidance ranges.

Speaker Change: Gaylord National achieved adjusted EBITDA margin expansion of 60 basis points. Despite wage increases associated with its recently negotiated CBA that went into effect in early November.

Speaker Change: Leisure demand, primarily at Gaylord Texan and to a lesser extent Gaylord Opryland did not materialize as expected during the peak holiday period in the last two weeks of December.

Speaker Change: And as a result of property delivered record full year adjusted EBITDA.

Speaker Change: Historically, our holiday transient business is highly concentrated in those last two weeks account for nearly 40% of leisure room nights in the fourth quarter and nearly 40% of total life admissions.

Speaker Change: Surpassing the prior year record.

Speaker Change: The <unk> Hill country was another bright spot in the fourth quarter, delivering revpar and total revpar growth of 14% to 27%, respectively, driven by a successful life programming debut.

Speaker Change: Additionally, the booking window is very short with approximately 60% of sales occurring within seven days of travel.

Speaker Change: Consistent with our investment thesis ice induced incremental leisure demand in our previously low occupancy period for the hotel in the fourth quarter leisure room nights were up 29% year over year in revenue with total Revpar index share as measured by star relative to its regional competitive set increased 9% to 32.

Speaker Change: When compared to last year fourth quarter leisure room nights at the Gaylord Texan were down 19% and at the Gaylord Opryland, we're down 6% at.

Speaker Change: Most of this decline occurring during those last two weeks.

Speaker Change: Our forecast anticipated some year over year softness in those markets as we know our older ice themes like Rudolph historically underperform, our newer themes like the polar express, but ultimately we were surprised by the magnitude of the underperformance, which we attribute to some combination of consumer price sensitivity normalization of post COVID-19 demand realm.

Speaker Change: Points, respectively.

Speaker Change: While profitability was modestly below our expectations due to increased marketing costs associated with our first year of ice programming adjusted EBITDA increased 13% year over year.

Speaker Change: We continue to be very bullish on the long term potential of holiday programming at this asset.

Speaker Change: The 2023 and general macroeconomic uncertainty.

Speaker Change: The shortfall drove the majority of the variance to the midpoint of our prior guidance range for adjusted EBITDA Free EBITDA sorry for this for same store hospitality.

Speaker Change: Fourth quarter bookings production was the standout for the fourth quarter and the full year.

Speaker Change: In the fourth quarter, the sales team booked a record $1 3 million same store gross group room nights for all future years.

Speaker Change: Now, let me share several bright spots in what was a strong quarter.

Speaker Change: Passing the prior year record by approximately 5% at a fourth quarter record ADR of $284.

Speaker Change: Fourth quarter room night production comprised 44% for full.

Speaker Change: Full year bookings.

Speaker Change: For the full year the sales team booked $2 9 million same store growth.

Speaker Change: <unk> increased approximately 2% compared to last year to $265, a new quarterly record with growth in both group and leisure right.

Speaker Change: Group room nights for all future years at a record ADR of $282.

Speaker Change: As a result projected same store gross group rooms revenue for all future years was also a record.

Speaker Change: As has been the case all year long banquet and AV revenue in the quarter was strong up approximately 5% compared to last year with higher contribution per group room night.

Speaker Change: So the GW Hill country. The sales team booked 79000 gross group room nights in the fourth quarter for all future years, an increase of approximately 57% year over year and 214000 gross group room nights and a full year for all future years.

Speaker Change: Both Gaylord Rockies and Gaylord national achieve milestones in the fourth quarter. The Rockies delivered record revenue in the month of December driven by strong <unk> performance and power and the positive reception to the completely transform Grand Lodge, and our new food and beverage offerings.

Speaker Change: Yeah.

Speaker Change: As of December 31, same.

Speaker Change: Same store group rooms revenue on the books for 2025, 26, and 27 were up 3%, 11% and 10% respectively compared to the same time last year for 2024, 25 and 26.

Speaker Change: Gaylord National achieved adjusted EBITDA margin expansion of 60 basis points. Despite wage increases associated with its recently negotiated CVA that went into effect in early November.

Speaker Change: And as a result of the property delivered record full year adjusted EBITA sorry.

Speaker Change: ADR on the books were 4%, 6% six 5% ahead of the same time last year for the same periods in occupancy on the books was 50 points 44 points to 37 point again for the same periods.

Surpassing the prior year record.

Speaker Change: The <unk> Hill country was another bright spot in the fourth quarter to living Revpar and total revpar growth of 14% to 27%, respectively, driven by a successful life programming debut.

Speaker Change: As a reminder, we strive to enter a year with approximately 50 points of occupancy.

Speaker Change: Consistent with our investment thesis ice induced incremental leisure demand and a previously low occupancy period for the hotel.

Speaker Change: Approximately 50 points of occupancy on the books within that context.

Speaker Change: In the fourth quarter leisure room nights were up 29% year over year in revenue with total Revpar index share as measured by star relative to its regional competitive set increased 9% to 32 points respectively.

Speaker Change: Right, where we want to be coming into 2025.

Speaker Change: Going forward, we intend to discuss bookings production and group business on the books on a total portfolio basis inclusive of the GW Hill country.

Speaker Change: As of December 31 group pace for the total portfolio folio is largely consistent.

Speaker Change: With that of the same store portfolio.

Speaker Change: Turning now to our entertainment business in the fourth quarter <unk> reported record revenue of $98 million, an increase of approximately 12% year over year.

Speaker Change: We continue to be very bullish on the long term potential of holiday programming at this asset.

Fourth quarter bookings production was the standout for the fourth quarter and the full year.

Speaker Change: Adjusted EBITDA <unk>.

Speaker Change: <unk> increased approximately 6% as profitability was impacted by construction disruption performance was led by old Red Las Vegas, which continues to exceed our expectations.

Speaker Change: In the fourth quarter, the sales team booked a record $1 3 million same store gross group room nights for all future years.

Speaker Change: Passing the prior year record by approximately 5% had a fourth quarter record ADR of $284.

Speaker Change: With the major capital investments in this business nearly complete our operating 100 programming underway and our expansion into the music festivals business through our recent investment in Southern Entertainment.

Speaker Change: Fourth quarter room night production comprised 44% for full.

Speaker Change: Full year bookings.

Speaker Change: Okay.

Speaker Change: For the full year the sales team booked $2 9 million same store growth.

Speaker Change: Poised to deliver meaningful growth in 2025 and beyond.

Speaker Change: Group room nights for all future years at a record ADR of $282.

Speaker Change: Before I turn it over to Jennifer to discuss our guidance for 2025, I want to take a moment to reflect on the progress to date against the 2027 outlook, we outlined at our Investor day last year.

Speaker Change: As a result projected same store gross group rooms revenue for all future years was also a record.

Speaker Change: Critical to achieving that outlook is the successful execution of our capital investment program, which we believe will continue to enhance our competitive advantage and induce incremental premium group demand over time.

Speaker Change: So the GW Hill country. The sales team booked 79000 gross group room nights in the fourth quarter for all future years, an increase of approximately 57% year over year at 214000 gross group room nights and a full year for all future years.

Speaker Change: Also critical to that success is our ability to manage to manage disruption throughout the construction period.

Speaker Change: As of December 31, same.

To that end, we've continued to make improvements to our design and construction processes and we've increased investment in our design and construction resources and capabilities.

Speaker Change: Same store group rooms revenue on the books for 2025, 26, and 27 were up 3%, 11% and 10% respectively compared to the same time last year for 2024, 25 and 26.

Speaker Change: Setting aside the labor market challenges, we encountered in Orlando our team has delivered our major projects at Gaylord Rockies and Gaylord Opryland on time on budget and within our expectations for disruption.

ADR on the books were 4%, 6% and six 5% ahead of the same time last year for the same periods in occupancy on the books was 50 points 44 points to 37 points again for the same periods.

Speaker Change: Looking ahead to 2025 early indications from the meeting space expansion project at Gaylord Opryland in the rooms renovation project at Gaylord Texan suggests we're trending favorably.

Speaker Change: In summary, we remain focused on delivering the asset improvements that will enable us to meet the 2027 outlook, we outlined at our Investor day last year.

Speaker Change: As a reminder, we strive to enter a year with approximately 50 points of occupancy.

Speaker Change: Approximately 50 points of occupancy on the books within that context, we're right, where we want to be coming into 2025.

Speaker Change: And while modestly more disruptive in the near term than originally anticipated the positive reception from our meeting planners that is showing up in our future bookings gives us confidence that this is the right thing for us to do for the business long term now.

Speaker Change: Going forward, we intend to discuss bookings production and group business on the books on a total portfolio basis inclusive of the J W Hill country.

Speaker Change: Now, let me turn it over to Jennifer to discuss our outlook for 2025, our balance sheet and liquidity position.

Speaker Change: As of December 31 group pace for the total portfolio folio is largely consistent with that of the same store portfolio.

Jennifer Hudson: Thanks Mark.

Jennifer Hudson: Our outlook for 2025 assumes a stable macro environment consistent with current trends for the hospitality segment inclusive of the Jws Hill country, we expect revpar growth of 2.25% to 475%.

Turning now to our entertainment business in the fourth quarter <unk> reported record revenue of $98 million, an increase of approximately 12% year over year.

Jennifer Hudson: We expect total revpar growth of one seven times to four 5% and adjusted EBITDA.

Speaker Change: Adjusted EBITDA.

Speaker Change: <unk> increased approximately 6% as profitability was impacted by construction disruption performance was led by old Red Las Vegas, which continues to exceed our expectations.

Jennifer Hudson: $675 million to $715 million.

Jennifer Hudson: These ranges reflect the estimated impact of construction disruption.

Jennifer Hudson: <unk> at 250 to 350 basis point impact to Revpar.

Jennifer Hudson: At 200 to 300 basis point impact to total revpar, and a 30% to $35 million impact to adjusted EBITDA sorry.

Speaker Change: <unk> is poised to deliver meaningful growth in 2025 and beyond.

Jennifer Hudson: The increase in our profitability disruption estimate compared to 2024 is primarily due to the larger scope of renovation for the Opry land meeting space during 2025.

Jennifer Hudson: Our outlook for total Revpar growth also reflects modestly lower outside the room spending levels from group relative to 2024 due to a higher mix of association business on the books in 2025 compared to 2024.

Jennifer Hudson: This is a natural outcome from time to time, given the size of the booking patterns of Association meeting.

Speaker Change: Also critical to that success is our ability to manage to manage disruption throughout the construction period.

Jennifer Hudson: Normalizing for the impact of disruption in both years the midpoint of the range assumes a modest growth in both group and leisure range revenue relative to 2024.

Speaker Change: To that end, we've continued to make improvements to our design and construction processes and we have increased investment in our design and construction resources and capabilities.

Jennifer Hudson: That low end of the range reflects additional conservatism around leisure demand as well as some conservatism around government related group business.

Jennifer Hudson: And the high end of the range reflects potential upside from leisure across the portfolio.

For the Entertainment segment, we expect adjusted EBITDA of $110 million to $120 million.

Looking ahead to 2025 early indications from the meeting space expansion project at Gaylord Opryland in the room renovation project at Gaylord Texan suggests we're trending favorable.

Jennifer Hudson: The range reflects the ramp up of our recent investments in block 21, and category, Ken and a range of modest first year outcomes for southern Entertainment.

Speaker Change: In summary, we remain focused on delivering the asset improvements that will enable us to meet the 2027 outlook, we outlined at our Investor day last year.

Jennifer Hudson: We're not assuming material growth in the Grand Ole Opry in 2025 due to the investments, we're making as part of the operating 100 brand activation.

Speaker Change: And while modestly more disruptive in the near term than originally anticipated.

Jennifer Hudson: Taken together, we expect consolidated adjusted EBITDA of.

Speaker Change: Positive reception from our meeting planners that is showing up in our future bookings gives us confidence that this is the right thing for us to do for the business long term.

Jennifer Hudson: $749 million to $801 million <unk>.

Jennifer Hudson: <unk> to common shareholders and unit holders, a $510 million to $555 million and <unk> <unk> per diluted share of $8 24 to.

Speaker Change: Now, let me turn it over to Jennifer to discuss our outlook for 2025, our balance sheet and liquidity position.

Jennifer: Thanks Mark.

Jennifer: Our outlook for 2025 assumes a stable macro environment consistent with current trends for the hospitality segment inclusive of the J W Hill country, we expect revpar growth of 2.25% to 475%.

Jennifer Hudson: The $8 86.

Jennifer Hudson: Let me remind you of a couple of modeling items.

Jennifer Hudson: First we expect the timing of the Easter holiday to shift business out in the second quarter, and 2025 and into the first quarter.

Jennifer: We expect total revpar growth of $1 75 to four 5% and adjusted EBITDA of $675 million to $715 million.

Jennifer Hudson: We're still booking groups into these patterns, but we estimate the magnitude of the shift could be at 250 to 350 basis point benefit to total hospitality revpar growth in the first quarter.

Jennifer: These ranges reflect the estimated impact of construction disruption.

Jennifer Hudson: Second we remind you of the Tennessee franchise tax refunds related to prior years, which we recognized as a one time benefit in the second quarter of 2024.

Jennifer: <unk> at 250 to 350 basis point impact to Revpar.

Jennifer: 200 to 300 basis point impact to total revpar, and a 30% to $35 million impact to adjusted EBITDA sorry.

Jennifer Hudson: The impact of hospitality business at that time was approximately $5 $6 million and the impact to the entertainment business was approximately $3 4 million.

Jennifer: The increase in our profitability disruption estimate compared to 2024 is primarily due to the larger scope of renovation for the Aquila meeting space during 2025.

Jennifer Hudson: And third results for Southern Entertainment will be consolidated consolidated in our financial results and as I noted earlier, our adjusted EBITDA range for the Entertainment segment does reflect a modest contribution from southern entertainment.

Jennifer: Our outlook for total Revpar growth also reflects modestly lower outside the room spending levels from group relative to 2024 due to a higher mix of association business on the books in 2025 compared to 2024.

Jennifer Hudson: And finally note that we've included an additional schedule to the guidance reconciliation tables that more clearly outlines the 2025 guidance calculations for <unk> <unk> per diluted share accounting for the theoretical conversion of the LNG put right.

Jennifer: This is a natural outcome from time to time, given the size of the booking patterns of association meetings.

Jennifer: Normalizing for the impact of disruption in both years the midpoint of the range assumes a modest growth in both group and leisure range revenue relative to 2024.

Jennifer Hudson: Okay.

Jennifer Hudson: Now turning to our balance sheet, we ended the year with $478 million of unrestricted cash on hand, and our $700 million revolving credit facility was undrawn.

Jennifer: The low end of the range reflects additional conservatism around leisure demand as well as some conservatism around government related group business.

$80 million revolving credit facility had a balance of $21 million outstanding.

Jennifer: And the high end of the range reflects potential upside from leisure across the portfolio.

Jennifer Hudson: Taken together, our total available liquidity was approximately $1 2 billion.

Jennifer: For the Entertainment segment, we expect adjusted EBITDA of $110 million to $120 million.

Jennifer Hudson: Net of approximately $4 million of outstanding letters of credit.

Jennifer Hudson: We retained an additional $99 million of restricted cash available for <unk> and other maintenance projects.

Jennifer: The range reflects the ramp up of our recent investments in block 21, and category, Ken and a range of modest first year outcomes for southern Entertainment.

Jennifer Hudson: In December we repriced, our corporate term loan b, reducing the applicable interest rate margin by 25 basis points.

Jennifer: We're not assuming material growth in the Grand Ole Opry in 2025 due to the investments, we're making as part of the operating 100 brand activation.

Jennifer Hudson: At the end of the quarter, our net leverage ratio based on total consolidated net debt to adjusted EBITDA was three nine times.

Jennifer: Taken together, we expect consolidated adjusted EBITDA of.

Jennifer Hudson: We continue to have the flexibility and liquidity to support our capital allocation priorities and the continued growth of our business.

Jennifer: $749 million to $801 million <unk> to common shareholders and unit holders, a $510 million to $555 million in it.

Jennifer Hudson: To that end, we are pleased to announced the declaration of our first quarter dividend of $1 15.

Jennifer: <unk> per diluted share of $8.24.

Jennifer Hudson: Payable on April 15th 2025 to shareholders of record as of March 31, 2025.

Jennifer: The $8 86.

Jennifer: Let me remind you of a couple of modeling items.

Jennifer Hudson: <unk>, our intention to continue to pay 100% of our REIT taxable income through dividends.

Jennifer: First we expect the timing of the Easter holiday to shift business out of the second quarter in 2025 and into the first quarter.

Jennifer Hudson: Finally, as Mark noted 2025 as another pivotal year on the capital investment front.

Jennifer: We're still booking groups into these patterns, but we estimate the magnitude of the shift could be a 250 to 350 basis point benefit to total hospitality revpar growth in the first quarter.

Jennifer Hudson: 2024, we invested $408 million in our business and.

Jennifer Hudson: In 2025, we expect to invest capital of approximately $400 million to $500 million.

Jennifer: Second we remind you of the Tennessee franchise tax refunds related to prior years, which we recognized as a onetime benefit in the second quarter of 2024.

Jennifer Hudson: Primarily at Gaylord Opryland, and Gaylord Texan.

Jennifer Hudson: A much more detail on the capital projects, we've announced in our earnings release.

Jennifer: The impact of hospitality business at that time was approximately $5 $6 million and the impact of the entertainment business was approximately $3 4 million.

Jennifer Hudson: So with that operator, let's open it up for questions.

Jennifer Hudson: Absolutely at this time, if you'd like to ask a question. Please press star and one key on your telephone keypad keep in mind, you could remove yourself from the question queue at any time by pressing star two.

And third results for Southern Entertainment will be consolidated consolidated in our financial results and as I noted earlier, our adjusted EBITDA range for the Entertainment segment does reflect a modest contribution from southern entertainment.

Speaker Change: We'll take our first question from Ari Klein with BMO capital markets. Please go ahead. Your line is open.

Jennifer: And finally note that we've included an additional schedule to the guidance reconciliation tables that more clearly outlines the 2025 guidance calculations for <unk> <unk> per diluted share accounting for the theoretical conversion of the LNG put right.

Jennifer Hudson: Thank you, Brian and good morning.

Speaker Change: Maybe can you talk a little bit about the renovation plan beyond the current one and what the timing of some of those could look like and then maybe related to that are the renovation headwinds that we're seeing in 'twenty five.

Jennifer: Okay.

Jennifer: Now turning to our balance sheet, we ended the year with $478 million of unrestricted cash on hand, and our $700 million revolving credit facility was undrawn.

Jennifer Hudson: Likely likely to be the peak.

Patrick: Patrick you want to.

Jennifer Hudson: Sure.

Jennifer Hudson: Good morning.

Jennifer: $80 million revolving credit facility had a balance of $21 million outstanding.

Jennifer Hudson: We are already.

Jennifer Hudson: Substantially through some work at Gaylord opryland around the presidential ballroom and associated spaces.

Jennifer: Taken together, our total available liquidity was approximately $1 $2 billion net of approximately $4 million of outstanding letters of credit.

Jennifer Hudson: Ballroom itself is complete and now we're working through some of the associated spaces around it that will be completed in June of this year.

Jennifer: We retained an additional $99 million of restricted cash available for S. S any and other maintenance projects.

Jennifer Hudson: Have begun work on the space expansion at Gaylord Opryland that will continue through into 2027.

Jennifer: In December we repriced, our corporate term loan b, reducing the applicable interest rate margin by 25 basis points.

Speaker Change: So that work has just begun and that has been comprehended in what Jennifer already shared.

We're continuing to work on the sports bar events Lawn and group Pavilion, and the Magnolia courtyard at Gaylord Opryland that will be completed either right at the end of this year or in the first quarter of 2006, we're just watching the weather just to determine how that impact will play out and then we will begin the renovation of our room.

Jennifer: At the end of the quarter, our net leverage ratio based on total consolidated net debt to adjusted EBITDA was three nine times.

Jennifer: We continue to have the flexibility and liquidity to support our capital allocation priorities and the continued growth of our business.

Jennifer: To that end, we're pleased to announced the declaration of our first quarter dividend of $1 15.

Speaker Change: Product Gaylord Texan and the second quarter of this year and we will complete that roughly in the second quarter of next year.

Jennifer: Payable on April 15th 2025 to shareholders of record as of March 31, 2025.

Jennifer: Our intention to continue to pay 100% of our REIT taxable income through dividends.

Speaker Change: And just on the headwinds that we're seeing in 'twenty five.

Jennifer: Finally, as Mark noted 2025 as another pivotal year on the capital investment front.

Speaker Change: Is.

Speaker Change: Is it a kind of a peak level, you think or I guess, given some of that longer term plans.

Jennifer: In 2024, we invested $408 million in our business in 2025, we expect to invest capital of approximately $400 million to $500 million.

Speaker Change: Maybe that.

Speaker Change: Increases.

Speaker Change: Yes, I would say that from a disruption perspective, what we've communicated thus far is that we think it's comparable to what we saw in 2024, there's a lot more volume going through in 2025.

Jennifer: Primarily at Gaylord Opryland, and Gaylord Texan, we provided much more detail on the capital projects, we've announced in our earnings release, so with that operator, let's open it up for questions.

Speaker Change: But we don't expect us to face some of the same headwinds that we saw at the Gaylord palms room renovation and.

Speaker Change: In 2024, so more volume, but about the same amount of disruption year over year.

Jennifer: Absolutely at this time, if he would like to ask a question. Please press the star one key on your telephone keypad keep in mind, you could remove yourself from the question queue at any time by pressing star two.

Speaker Change: Okay, and then just on the higher mix of association business in 25 impacting <unk> curious what that mix looks like in the group bookings in 2000.

Jennifer: Like our first question from Ari Klein with BMO capital markets. Please go ahead. Your line is open.

Speaker Change: And 2027.

Speaker Change: If maybe we see that trend kind of Robert.

Speaker Change: Thank you Brian and good.

Speaker Change: Yes.

Jennifer: Morning.

Speaker Change: Yes.

Jennifer: Can you talk a little bit about the renovations planned beyond the current ones and what the timing of some of those could look like and then maybe related to that are the renovation headwinds that we're seeing in 'twenty five likely likely to be the peak.

Speaker Change: We're moving towards a higher mix of corporate in 2026, obviously, we sell a lot of business to book into that period of time, but we do see a higher mix of corporate and <unk> 26 based on what's on the books right now I would point out, though that even with the higher mix of association in 2025, our rate on the books from a group perspective is very very healthy.

Jennifer: That's what you want to.

Jennifer: Does that sure.

Speaker Change: And shows.

Jennifer: Good morning.

Speaker Change: All the growth so not all generally speaking corporate has better spend outside the room and has a higher premium customer.

Jennifer: We are already.

Jennifer: Substantially through some work at Gaylord opryland around the presidential ballroom and the associated spaces.

Speaker Change: But we're doing a better and better job of attracting the most premium association groups and so I'm very encouraged by what's on the books and how we'll see that play out this year.

Jennifer: Ballroom itself is complete and now we're working through some of the associated spaces around it that will be completed in June of this year. We have begun work on the space expansion at Gaylord Opryland that will continue through into 2027.

Speaker Change: Hey art.

Speaker Change: One thing back on disruption as it relates to the operating room meeting space expansion. This first phase. This year is the most disruptive as the demolition occurs so as we roll into 2026 is that project will continue.

Jennifer: So that work has just begun and that has been comprehended in what Jennifer already shared.

Jennifer: We're continuing to work on the sports bar events Lawn and group Pavilion, and the Magnolia courtyard at Gaylord Opryland that will be completed either right at the end of this year or in the first quarter of 2006, we're just watching the weather just to determine how that impact will play out and then we will begin the renovation of our room.

Speaker Change: It will be less disruptive to ongoing business, because you'll have less you'll have less noise interrupting groups.

Speaker Change: Unless connecting of the building.

Speaker Change: Appreciate the color. Thank you.

Eric: Thanks, Eric.

Jennifer: Product Gaylord Texan and the second quarter of this year and we will complete that roughly in the second quarter of next year.

Speaker Change: We'll take our next question from Smedes Rose with Citi. Please go ahead. Your line is open.

Hi, Thank you.

Speaker Change: I wanted to ask you a little bit about your.

Jennifer: And just on the headwinds that we're seeing in 'twenty five.

Speaker Change: Labor and wage costs, maybe how much did they increase in 2004 and how much are you baking in for 2025.

Jennifer: That is.

Jennifer: Is it kind of a peak level, you think or I, just given some of the longer term plans.

Jennifer: Maybe that.

Patrick: Hey, Smedes. This is Patrick good morning to you, yes, we saw as wages specifically year over year, we saw about three 3% increase and we're baking in about the same amount, but we did incorporate the full year impact of our collective bargaining agreement.

Jennifer: Increases.

Jennifer: Yes, I would say that from a disruption perspective, what we've communicated thus far is that we think it's comparable to what we saw in 2024, there's a lot more volume going through in 2025.

Jennifer: We don't expect us to face some of the same headwinds that we saw at the Gaylord palms room renovation.

Patrick: With Gaylord National and the Union there so we've taken that into account, but 3% to 4% expense increase is what we're expecting.

Jennifer: In 2024, so more volume, but about the same amount of disruption year over year.

Speaker Change: Wage and labor front and basically be the same in our entertainment business too we took big increases back in 'twenty three 'twenty, two and 'twenty three we did I mean to <unk> point, we are up at the end of 'twenty four we're up about 34% in the hotel business in terms of wages, but the most important thing is our wage margin has remained flat so.

Speaker Change: Okay, and then just on the higher mix of association business in 25 impacting Atabrine span curious what that mix looks like in the group bookings in 2000.

Jennifer: And 2027.

Jennifer: We see that trend kind of reverse in those years.

Jennifer: Yes.

Patrick: We're very proud of our ability to manage the productivity levels.

Jennifer: We are moving towards a higher mix of corporate in 2026, obviously, we sell a lot of business to book into that period of time, but we do see a higher mix of corporate and 26 based on what's on the books right now I would point out, though that even with the higher mix of association in 2025, our rate on the books from a group perspective is very very.

Speaker Change: To offset the increase in wages.

Speaker Change: Thanks, and then I just wanted to ask you I know you've talked about.

Speaker Change: Bookings on.

All future roommates et cetera, just any sort of change in the profile of our pud bookings.

Jennifer: Healthy and shows the.

Speaker Change: You're seeing pick ups in associations or trade shows or is it.

Jennifer: Solid growth so not all generally speaking corporate has better spend outside the room and has a higher premium customer.

Speaker Change: Sort of typical mix or any kind of color you can provide there.

Speaker Change: Yes, I would tell you that.

Speaker Change: Part of the investment thesis that we've embarked on is our ability to re remix hotels like Gaylord opryland towards a higher mix of the premium corporate business and I'm really proud of what the operating land team has been doing.

Jennifer: But we're doing a better and better job of attracting the most premium association groups and so I'm very encouraged by what's on the books and how we'll see that play out this year.

Art: Hey art.

Art: One thing back on disruption as it relates to the operating room and meeting space expansion. This first phase. This year is the most disruptive as the demolition occurs so as we roll into 2026 is that project will continue.

Speaker Change: In terms of what they booked in the fourth quarter and throughout 2020 for Opryland achieved the highest growth in ADR of any of our hotels. They are doing a great job of Remixing that hotel towards a higher level of corporate we will always need association business and we highly value. It in fact in the DC market.

Art: It will be less disruptive to ongoing business, because you'll have less you'll have less noise interrupting groups.

Art: Unless connecting of the building.

Speaker Change: We're trying to get a little bit more association in place because that market just has seen some challenges for the past few years and our way of offsetting that is securing more association business long term, but across the brand we have been seeing a higher mix towards corporate and a lot of that as a result of the investments we've been making that that makes it more.

Art: I appreciate the color. Thank you.

Sarah: Thanks Sarah.

Speaker Change: We'll take our next question from Smedes Rose with Citi. Please go ahead. Your line is open.

Smedes Rose: Hi, Thank you.

Smedes Rose: I wanted to ask you a little bit about your labor and wage costs, maybe how much did they increase in 'twenty four and how much are you baking in for 2025.

Speaker Change: <unk> for those groups to come to us.

Speaker Change: Regardless of the segment, we're moving to higher rated groups absolutely yes.

Speaker Change: We've intentionally walked away from a few groups in order to achieve those higher rates and said this is the investment thesis and this is the product. We have if you can afford it we understand that but some groups have said, okay. We're going elsewhere, and then they'll come back and said no. We want to we will pay the higher rate to continue to enjoy this experience in groups that have been with us for 20.

Patrick: This means this is Patrick good morning to you, yes, we saw wages specifically year over year, we saw about three 3% increase and we're baking in about the same amount, but we did incorporate the full year impact of our collective bargaining agreement.

Patrick: With Gaylord National and the Union there so we've taken that into account, but 3% to 4% expense increase is what we're expecting.

Speaker Change: Yes, that's right.

Speaker Change: Alright, Thank you I appreciate it.

Speaker Change: Thanks Smedes.

Speaker Change: <unk> and labor front and basically the same in our entertainment business too we took big increases back in 'twenty three 'twenty, two and 'twenty three we did I mean to Collins point, we're up.

Speaker Change: And we'll take our next question from Duane <unk> with Evercore ISI. Please go ahead. Your line is open.

Duane: Hey, Thank you good morning.

Speaker Change: At the end of 'twenty four we're up about 34% in the hotel business in terms of wages, but the most important thing is our wage margin has remained flat. So we're very proud of our ability to manage the productivity levels.

Speaker Change: Just wondering with respect to.

Speaker Change: The ice results Texan and Opry land is that.

Speaker Change: Typically a local market demand or is that drive to leisure.

Speaker Change: Do you think there was a trend change in those local markets.

Speaker Change: To offset the increase in wages.

Or is this more about ice programming in and do you think that could evolve next year.

Speaker Change: Thanks, and then I just wanted to ask you I know you've talked about record bookings.

Speaker Change: All future room nights et cetera, just any sort of change in the profile of our pud bookings.

Speaker Change: Well it is it is more local local in very short driving.

Speaker Change: You're seeing pick ups in associations or trade shows or is it.

Speaker Change: Demand whats unique about <unk>.

Speaker Change: Sort of typical mix or any kind of color you can provide there.

Speaker Change: What's unique about the Christmas leisure guest is is that it has a much shorter length of stay.

Speaker Change: Yes, I would tell you that.

Speaker Change: Our summer guests, but they spend two times.

Speaker Change: Two times the amount on property.

Speaker Change: So it's a.

Speaker Change: It has a short duration higher cost.

Speaker Change: <unk>.

Speaker Change: Activity for the leisure guest.

Speaker Change: So.

Speaker Change: What we saw this year was those admissions were flat in terms of guests attending ice, but what we saw was a decrease in the overnight stay so some of it looks like it was.

Speaker Change: Potentially the lower.

Speaker Change: The lower rated customer trading down from an overnight stay to just a day visit but we're doing some work around that now to try to understand exactly what the behavior was as.

Speaker Change: As it relates to those customers.

Speaker Change: If I might.

Speaker Change: Duane.

Speaker Change: This is colin.

Speaker Change: Morning, I wanted to.

Speaker Change: <unk> for those groups to come to us.

Speaker Change: Just to add something here because I had read a few reports here this morning.

Speaker Change: Regardless of the segment, we're moving to higher rated groups absolutely yes.

Speaker Change: Sort of highlights results of sort of leisure weakness.

Speaker Change: We've intentionally walked away from a few groups in order to achieve those higher rates and said this is the investment thesis and this is the product we have if you can't afford it we understand that but some groups have said, okay. We're going elsewhere, and then they'll come back and said no. We want to we'll pay the higher rate to continue to enjoy this experience and groups that have been with us for 20.

Speaker Change: I want to put this in perspective at 19. These five of that Big hotels, and 19 did about 100, just under $150 million in revenue in the month of December and lost last year not 2023, we did about $200 million. It was up 34% from 19 to.

Speaker Change: Is that's right yes.

Speaker Change: 23, basically all leisure business and in 'twenty four we did about 192 million slightly below last year.

Alright, Thank you I appreciate it.

Thanks Smedes.

Speaker Change: We will take our next question from Duane <unk> with Evercore ISI. Please go ahead. Your line is open.

Speaker Change: But these are spectacular numbers and so I see as one component of it over the years. We've built light shows we've done we do dinner shows we had kids areas, we have massive indoor pool complexes that drives as leisure business. This is very very strong business.

Duane: Hey, Thank you good morning.

Speaker Change: Just wondering with respect to.

Speaker Change: The ice results Texan and Opry land is that.

Speaker Change: Typically a local market demand or is that drive to leisure.

Speaker Change: Do you think there was a trend change in those local markets.

Speaker Change: The weakest of the of these five hotels did about $1 million a day in revenue in the month of December in Opryland, 2880 rooms did one $175 million a day in basically in leisure business in the month of December So Alicia.

Or is this more about ice programming in and do you think that could evolve next year.

Speaker Change: Well it is it is more local local in very short drive in <unk>.

Speaker Change: Demand whats unique about.

Speaker Change: <unk> is not weak at leisure business is very strong in the month of December it's just that it wasn't quite as strong as we thought it was going to be and.

What's unique about the Christmas leisure guest is is that it has a much shorter length of stay.

Speaker Change: Then our summer guests, but they spend two times.

Speaker Change: And that it will happen in the last couple of weeks and we'll get to the bottom of that is it pricing is it the consumer is just a little fatigued.

Speaker Change: Two times the amount on property.

Speaker Change: So it's a.

Speaker Change: As a short duration higher cost.

Speaker Change: Activity for the leisure guest.

Speaker Change: And my guess is maybe a little bit of both and we will figure that out but our leisure business is very strong yes, I will tell you just to add to that we did some primary research with the ice consumers. They were exiting ice we did see a lot more economic sensitivity now as a result of that we softened up and play around.

Speaker Change: So.

Speaker Change: What we saw this year was those admissions were flat in terms of guests attending ice, but what we saw was a decrease in the overnight stay so some of it looks like it was.

Speaker Change: Potentially the lower.

Speaker Change: The lower rated customer trading down from an overnight stay to just a day visit but we're doing some work around that now to try to understand exactly what the behavior was.

Speaker Change: With our yielding strategies, we did not see a dramatic improvement in volume sold as a result of lower in price and so we went back to where we stood from a pricing perspective.

Speaker Change: As it relates to those customers.

Speaker Change: Our takeaway from that is Theres, just a lot of uncertainty and a lot of sensitivity and so folks were just making decisions to spend less.

Speaker Change: If I might.

Speaker Change: Duane this is <unk>.

Speaker Change: Good morning, I wanted to just add something here because I've read a few reports here this morning.

Speaker Change: And some of those lower tiered.

Yeah.

Speaker Change: Value consumers and it wasn't that we had priced out of there.

Speaker Change: Sort of highlights results of sort of leisure weakness.

Speaker Change: Capability or what they were interested in buying into its just that they were very unsure about the season and we're we're being a little more cautious.

Speaker Change: I want to put this in perspective at 19. These five of that Big hotels, and 19 did about 100, just under $150 million in revenue in the month of December and lost last year not 'twenty four 'twenty three we did about $200 million was up 34% from 19 to.

Speaker Change: Okay. Thank you that's helpful context, and then just with respect to the group bookings and your momentum with corporates.

Speaker Change: Any particular industries that stick out thanks for taking the questions.

Speaker Change: 23, basically all leisure business and in 'twenty four we did about 192 million slightly below last year.

Speaker Change: Yes, I would say that we are very interested in financial in tech and are doubling our efforts to go after some of that but we've seen growth across a lot of industries. So I wouldnt beyond those two I wouldn't say, there's anything that really stands out.

Speaker Change: But these are spectacular numbers and so I see as one component of it over the years we've.

Speaker Change: Light shows we've done we do dinner shows we had kids areas, we have massive indoor pool complexes that drives this leisure business. This is very very strong business that the weakest of the of these five hotels did about $1 million a day in revenue in the month of December in Opryland.

Speaker Change: Thank you.

Speaker Change: We will take our next question from Dori, Jason with Wells Fargo. Please go ahead. Your line is open.

Speaker Change: Thanks, Good morning.

Speaker Change: After the Opryland meeting space expansion announcement are there more announcements like this in the background that you are considering.

Speaker Change: <unk> 2880 rooms did one.

Speaker Change: Or is the Capex plan that you laid out at the Investor day through 'twenty seven pretty baked in at this point.

Speaker Change: $175 million a day in basically in leisure business in the month of December So our leisure business is not weak at leisure business is very strong in the month of December. It's just that it wasn't quite as strong as we thought it was going to be and and that it will happen.

Speaker Change: It may be.

Speaker Change: I mean, the way, we think about the step door is.

Speaker Change: We we don't wake up and say you know what we need to extend this hotel we look at the demand characteristics of each of our physical assets. We look at things like turn down so we look good.

In the last couple of weeks and we get to the bottom of that is it pricing is it the consumer is just a little fatigued.

Speaker Change: All of the activity amongst the meeting planning community and.

And my guess is maybe a little bit of both and we will figure that out but our leisure business is very strong yes, I will tell you just to add to that we did some primary research with the ice consumers. They were exiting ice we did see a lot more economic sensitivity now as a result of that we softened up and play around.

Speaker Change: The good news is we've talked about this morning is that we are building a lot of forward demand into this business and if that if that demand continues to accelerate there will probably be additional.

Speaker Change: <unk> expansions that we will have to our meeting space, we'll have to we'll have to contemplate.

Speaker Change: With our yielding strategies, we did not see a dramatic improvement in volume sold as a result of lower in price and so we went back to where we stood from a pricing perspective.

I think we've said.

Speaker Change: Many times before when we when.

When we bought.

Speaker Change: Hill country.

Speaker Change: Our takeaway from that is Theres, just a lot of uncertainty and a lot of sensitivity and so folks were just making decisions to spend less.

Speaker Change: We didn't buy hill country to have it.

Speaker Change: Some of the 1000 room hotel 10 years from now we believe in and juicing demand into that market and at this at some point in time, we will we will pull the trigger but we're in a very very.

Speaker Change: And some of those lower tiered.

Value consumers and it wasn't that we had priced out of their capability or what they were interested in buying into its just that they were very unsure about the season and we're we're being a little more cautious.

Speaker Change: Interesting and exciting I am trying to tell you. This is a very exciting time for this company because we are building really strong forward demand because of the unique capabilities of out of our hotels.

Speaker Change: Okay. Thank you that's helpful context, and then just with respect to the group bookings and your momentum with corporates.

Speaker Change: And and I think this will give us the opportunity to deploy more capital at high rates of return over the over the years to come.

Speaker Change: Any particular industries that stick out thanks for taking the questions.

Speaker Change: Yes, I would say that we are very interested in financial in tech and are doubling our efforts to go after some of that but we've seen growth across a lot of industries and so I wouldnt beyond those two I wouldn't say, there's anything that really stands out.

Speaker Change: Yes, I think it's fair to say that all all enhancements are not created equal in terms of construction disruption.

Speaker Change: Adding adding rooms.

Speaker Change:

Speaker Change: Is less disruptive than say renovating all of your meeting space.

Speaker Change: Thank you.

Speaker Change: Because when you take meeting space.

Speaker Change: We'll take our next question from Dougherty, Jason with Wells Fargo. Please go ahead. Your line is open.

Out of inventory, you, obviously can't sell selling groups. So.

Speaker Change: Collins right, we look at every hotel in terms of.

Jason Dougherty: Thanks, Good morning.

Speaker Change: After the opera land meeting space expansion announcement are there more announcements like this in the background that you are considering or.

Speaker Change: How do we drive incremental profitability be that through additional rooms through renovations or through new food and beverage options et cetera.

Speaker Change: Here is the Capex plan that you laid out at the Investor day through 'twenty seven pretty baked in at this point.

Speaker Change:

Speaker Change: And then we will consider the disruption as part of the returns analysis based on the type of project.

Speaker Change: I think that may be well.

Speaker Change: Sure.

Speaker Change: The way, we think about the stuff door is.

Speaker Change: During one of the beauties of this new space expansion that Gaylord Opryland is once that to open in Europe brand New space. It allows you to take what would have been seen as disruption in the past and absorb it into that new space to get Tennessee ballroom renovated and the Delta ballroom been renovated so there's.

Speaker Change: We don't wake up and say you know what we need to extend this hotel we look at the demand characteristics of each of our physical assets. We look at things like turn down so we look at.

All of the activity amongst the meeting planning community and here's the good news is as we've talked about this morning is that we are building a lot of forward demand into this business and if that if that for demand continues to accelerate there will probably be it.

Speaker Change: There's definitely an agenda with getting this built as quickly as possible. So that we can.

Speaker Change: Not create additional disruption when we need to do other renovations at that hotel.

Speaker Change: Yeah, and I think the only other project that was on the page that we've talked about in recent years. In addition to what everyone else has mentioned the Rockies expansion I think that's always been in the background as something we view as.

Speaker Change: Additional.

Speaker Change: Rooms expansions that we will have to our meeting space, we'll have to we'll have to contemplate.

Speaker Change: I think we've said.

Speaker Change: Part of the long term view that there are still a few things to work through on the on the design and other issue, but I would say, we're probably nearer today to that one than we were 12 to 18 months ago simply because of what we've been able to accomplish with the the complete beautiful <unk> of the of that Grand Lodge in the food or.

Mark: Many times before Mark when we when.

Speaker Change: When we bought.

Mark: Hill country.

Speaker Change: We didn't buy hill country to have it.

Speaker Change: Some of the 1000 room hotel 10 years from now we believe in inducing demand into that market and at this at some point in time, we will we will pull the trigger but we were in a very very.

Speaker Change: <unk> and the impact that we're seeing.

Speaker Change: All of those investments that we've made that's got us pretty excited about Colorado, Yes, we've just got some administrative.

Speaker Change: Political issues to work through there.

Speaker Change: Thank you for all that it's fair to say, though that with the Rockies expansion that's really it's.

Speaker Change: It's relatively not disrupting that I guess given that path.

Speaker Change: And and I think this will give us the opportunity to deploy more capital at high rates of return over the over the years to come.

Speaker Change: Yes, George Thats very fair, because youre talking about a building that has only one connection point to the main building and essentially that work can do be done almost didn't complete isolation from the rest of the hotel.

Speaker Change: Yes, I think it's fair to say that all all enhancements are not created equal in terms of construction disruption.

Speaker Change: Okay got it thank you.

Speaker Change: Adding adding rooms.

Speaker Change: Thank you.

Speaker Change:

Speaker Change: We'll take our next question from Chris Darling with Green Street. Please go ahead. Your line is open.

Speaker Change: Is less disruptive than say renovating all of your meeting space.

Speaker Change: Because when you take meeting space.

Speaker Change: Thank you and good morning.

Speaker Change: Out of inventory, you, obviously can't sell sell into groups. So.

Speaker Change: Couple of questions for you on the Gaylord National first whats your expectation for performance in 2025, and then secondly, how reliant is that property on the local D. C market in terms of demand generation. Just just wondering if theres any risk maybe with some of the government efficiency initiatives and how.

Speaker Change: Collins right. We look at every hotel in terms of how do we drive incremental profitability be that through additional rooms through renovations or through new food and beverage options et cetera.

Speaker Change: <unk>.

Speaker Change: At May.

Speaker Change: And then we'll consider the disruption as part of the returns analysis based on the type of project.

Speaker Change: May or may not impact that property going forward.

Speaker Change: And then Patrick is going to pull up.

Speaker Change: Additional details on that but we don't generally provide guidance by property level. We can give you some directional color forward bookings on national for this year and next year the year off to look pretty good.

Speaker Change: During one of the beauties of this new space expansion at Gaylord Opryland is once that's open and you have brand new space. It allows you to take what would have been seen as disruption in the past and absorb it into that new space to get Tennessee ballroom renovated and the Delta ballroom been renovated so there's.

Speaker Change: Yes.

Speaker Change: As I mentioned earlier we.

Speaker Change: We do see.

Speaker Change: And are concerned with whats going on from a government perspective, and we've been trying to pivot away from that business as much as possible I would say we have minimal exposure as we move through 2025, we've already looked at what's on the books and take a look at that.

Speaker Change: There is definitely an agenda with getting this built as quickly as possible. So that we can.

Speaker Change: Not create additional disruption when we need to do other renovations at that hotel.

Speaker Change: And I think the only other project that was on the page that we've talked about in recent years. In addition to what everyone else has mentioned the Rockies expansion I think that's always been in the background as something we view as.

Speaker Change: And we are trying to mix it towards a higher level of association because we do think that there is some short term demand generation challenges in that market.

Speaker Change: So I Wouldnt say theres, an overreliance on the local market. There is certainly not from a transient perspective that hotel runs a much higher percentage of group business than our other hotels simply.

Speaker Change: Part of the long term view, but theres still a few things to work through on the on the design and other issues, but I would say, we're probably nearer today to that one than we were 12 to 18 months ago simply because of what we've been able to accomplish with the the complete beautiful <unk> of the of that Grand Lodge in the food or beverage.

Speaker Change: Simply because we found that there is greater strength in being able to drive from the group side, but we believe that.

Speaker Change: National just finished an incredibly strong year in terms of performance and we will continue that trend.

Speaker Change: And the impact that we're seeing.

Speaker Change: Those investments that we've made that got us pretty excited about Colorado, Yes, we just got some administrative yes political issues to work together.

Speaker Change: Okay.

Chris Darling: Chris It's fair, it's fair to say that.

Chris Darling: All the headlines we're seeing now around some of the political changes that are occurring we're considering that across the portfolio we think about.

Speaker Change: But thank you for all that it's fair to say, though that with the Rockies expansion that's relative.

Speaker Change: Group exposure and what business, we either have on the books that we're pursuing and how it might how it might affect their behavior.

Speaker Change: Relatively not disrupting that would just given that path.

Yes, Thats very fair because youre talking about a building that has only one connection point to the main building and essentially that work can do be done almost in complete isolation from the rest of the hotel.

Speaker Change: Okay. That's all helpful thoughts.

Speaker Change: And then I have a bit of a nuanced question there may not be a lot here, but I'll ask it anyway, you mentioned you've come into this year expecting lower out of room spend or a little bit lower out of room spend because of the group mix shift I wonder with that dynamic in place what's your ability to sort of manage your expense structure around that is there anything to read into.

Speaker Change: Okay got it thank you.

Speaker Change: Thank you.

Speaker Change: We'll take our next question from Chris Darling with Green Street. Please go ahead. Your line is open.

Chris Darling: Thank you and good morning.

Chris Darling: A couple of questions for you on the Gaylord National first what what's your expectation for performance in 2025, and then secondly, how reliant is that property on the local D. C market in terms of demand generation. Just just wondering if theres any risk maybe with some of the government efficiency initiatives.

Speaker Change: About that.

Speaker Change: Well I mean, obviously it.

Speaker Change: There is a high margin piece of our business.

Speaker Change: But that's been taken into account in the guidance that we provided and there are other levers that we pull to try and offset maybe a mix shift from corporate towards association to my point earlier.

Chris Darling: How that.

Chris Darling: May or may not impact that property going forward.

Patrick: And then Patrick is going to pull up.

Speaker Change: We do see a room rate on the books is in very strong position and our sales teams do an excellent job of when they're 90 days out of 30 days out from a group arriving of trying to up sell every single group to try and drive additional spend outside the room, but.

Patrick: Additional details on that but we don't generally provide guidance that property level. We can give you some directional color forward bookings on national This year next year Youre off to look pretty good.

Patrick: Yeah.

Patrick: As I mentioned earlier we.

Speaker Change: Generally we have a number of levers that we put into place to try and offset that and maintain our margin or even grow it.

Patrick: We do see.

Patrick: And are concerned with whats going on from a government perspective, and we've been trying to.

Patrick: Pivot away from that business as much as possible.

Speaker Change: Put this in context, I mean as association mix that we're seeing on the books, it's comparable to what we've seen in prior periods. We just had a really strong mix of corporate in 'twenty four as well so.

Patrick: I'd say, we have minimal exposure as we move through 2025, we've already looked at what's on the books and take a look at that.

Patrick: And we are trying to mix it towards a higher level of association because we do think that there is some short term demand generation challenges in that market.

Speaker Change: Just again to put that in context put all of that into context, it's not it is not a dramatic dramatic shifts.

Patrick: So I Wouldnt say theres, an overreliance on the local market. There is certainly not from a transient perspective that hotel runs a much higher percentage of group business than our other hotels simply because we've found that there's greater strength in being able to drive from the group side, but we believe that.

Speaker Change: The thing I was going to add is that one of the advantages of the group businesses.

Speaker Change: With the forward four forward visibility of their activities.

Speaker Change: From a labor scheduling standpoint, it gives you some advantages because you know.

Speaker Change: Where that group is going to be are they going to be in the outlets are there going to be in.

Patrick: <unk> just finished an incredibly strong year in terms of performance and we will continue that trend.

Speaker Change: In the banquet meeting rooms.

Speaker Change: And so it allows you to two are more appropriately staffed for the volumes.

Patrick: Okay.

Chris Darling: Chris It's fair, it's fair to say that.

Speaker Change: We just traveled.

Patrick: All the headlines we're seeing now around.

Speaker Change: A very large association through Gaylord Opryland this past weekend.

Patrick: Some of the political changes that are occurring we're considering that across the portfolio as we think about.

Speaker Change: And the initial preliminary figures coming back is that the group achieved a historic level of attendance significantly even outpacing what they did last year, which was historic and as a result, we saw arises and parking food and beverage outlets catering across the board. So again association business generally.

Group exposure and what business, we either have on the books that we're pursuing and how it might how it might affect their behavior.

Patrick: Okay. That's all helpful thoughts.

Patrick: Then I have a bit of a nuanced question there may not be a lot here, but I'll ask it anyway. You mentioned you come into this year expecting lower out of room stand a little bit lower out of room spend because of the group mix shift I wonder with that dynamic in place what's your ability to sort of manage your expense structure around that is there anything to read into it.

Not to the same level of premium is corporate but if we see the kind of performance that we saw this weekend.

Speaker Change: From one of the groups of troubled throughout the land that bodes well for US let me take a minute here if I could.

Speaker Change: I'm going to do something here, Patrick that's going to surprise young I'm going to compliment you and your team but.

Patrick: That.

Speaker Change: The other thing that.

Patrick:

Patrick: Well I mean, obviously it.

Speaker Change: I feel very very good about our team here, we play we don't play a passive role with our manager we play a very active role with that manage it Patrick and his team.

Patrick: That is a high margin piece of our business.

Patrick: But that's been taken into account in the guidance that we've provided and there are other levers that we pull to try and offset maybe a mix shift from corporate towards association to my point earlier.

Speaker Change: Literally in these hotels I mean, basically daily managing wisdom manages the cost structure of these businesses and that's one of the reasons why I think over the last two three years that we've had.

Patrick: We we.

Patrick: We do see the room rate on the books is in very strong position and our sales teams do an excellent job of we know when they're 90 days out of 30 days out from a group arriving I'm trying to up sell every single group to try and drive additional spend outside the room, but.

Speaker Change: Very good results around margin, even even with wage pressures that we experienced in 'twenty, two and 'twenty three and I will complement.

Patrick: Generally we have a number of levers that we put into place to try and offset that and to maintain our margin or even grow it and just to put this in context to the association mix that we're seeing on the books, it's comparable to what we've seen in prior periods. We just had a really strong mix of corporate in 'twenty four.

Speaker Change: Asset management team. So when we see these mix shifts we are bringing this to the attention to the leadership of each of these hotels to make sure that we were adjusting our cost structures. So that we do not see dilution.

Speaker Change: In.

Speaker Change: And our EBITDA margins.

Patrick: As well so.

Speaker Change: To your point Collyn, we had two 1% same store.

Patrick: Just again to put <unk> context put all of that into context, it's not it is not a dramatic dramatic shifts.

Speaker Change: Revenue growth last year, and we grew margins 30 basis points and Thats because of the.

Patrick: The thing I was going to add is that one of the advantages of the group businesses with the forward four forward visibility of their activities.

Speaker Change: I don't think its because of.

Speaker Change: The brilliance of.

Speaker Change: Our manage it and I think it's a combination of the work that Patrick and his team do daily in the managing of the managing of the cost structures of these businesses.

Patrick: From a labor scheduling standpoint, it gives you some advantages because you know.

Patrick: Where that group is going to be are they going to be in the outlets are there going to be in the banquet meeting rooms.

Speaker Change: That was an implement thank you thank you to the.

Speaker Change: Collins point, there are levers that we pull to maintain the margin on the bottom line and we've already taken significant steps to get ahead of any risks that we foresee for this year and impact the bottom line in a positive way to help ourselves out and achieving our goals.

Patrick: And so it allows you to two are more appropriately staffed for the volumes I mean, we just traveled.

Patrick: A very large association through Gaylord Opryland this past weekend.

Patrick: The initial preliminary figures coming back is that the group achieved a historic level of attendance significantly even outpacing what they did last year, which was historic and as a result, we saw a rise in parking food and beverage outlets catering across the board. So again association business generally.

Speaker Change: Is that helpful.

Speaker Change: Yes, that's very helpful comments I appreciate all the color there. Thank you.

Speaker Change: Thank you.

Speaker Change: Okay.

Speaker Change: Who's next David.

Patrick: Not to the same level of premiums corporate but if we see the kind of performance that we saw this weekend.

Speaker Change: Take our next question from Jay Kornreich with Wedbush Securities. Please go ahead. Your line is open.

From one of the groups of trouble throughout the land that bodes well for us.

Jay Kornreich: Alright. Thanks, so much I wanted to ask about just the pace of group of group revenue on the books for 2026 being up 11%, which I believe you said reflects ADR growth of four 5%. So I'm curious as closer to 2026 and they are able to book into many of the finish capex projects.

Speaker Change: Let me take a minute here, if I could I'm going to.

Do something here, Patrick Thats going to surprise young I'm going to complement you and your team but.

Speaker Change: The other the other thing that I.

Speaker Change: I feel very very good about.

Jay Kornreich: Outlined our recruitment strategy do you think there's opportunity to push that four 5% rate growth even higher.

Speaker Change: Team here.

Speaker Change: Play, we don't play a passive role with our manager we play a very active role with that manage that Patrick and his team.

Jay Kornreich: Yes, certainly there is keep in mind.

Speaker Change: Literally in these hotels I mean, basically daily managing with the manages the cost structure of these businesses and that's one of the reasons why I think over the last two three years that we've had.

Jay Kornreich: When you look at where revenue on the books is relative to prior years as we approach the travel date right. We're moving towards a 50 50 points of occupancy on the books. So as we enter a year typically the differential in revenue on the books is good.

Speaker Change: Very good results around margin, even even with wage pressures that we experienced in 'twenty two 'twenty three.

Speaker Change: And I will complement our asset management team. So when we see these mix shifts we are bringing this to the attention to the leadership of each of these hotels to make sure that we were adjusting our cost structures. So that we do not see dilution.

Jay Kornreich: Going to be.

Jay Kornreich: Purely rate typically.

Jay Kornreich: But thats the opportunity the opportunity is to continue to push that rate and grow that 6% higher.

Jay Kornreich: As we move towards the year, because as the booking window shortens Youre also going to book more and more corporate business, which typically travels at a higher rate and just to add to that I would tell you that the hotels are going through right now because they are ahead and more aggressively what we call. It cutting the group room blocks, which is lowering the expectations of how much we will.

Speaker Change: In.

Speaker Change: In our EBITDA margins.

Speaker Change: To your point Collyn, we had two 1% same store.

Speaker Change: Revenue growth last year, and we grew margins 30 basis, yes, yes, and thats because of the.

Jay Kornreich: How much will travel so that they free up more space and more rooms to sell into and with that compression that consultant higher rates. So they are all over it revenue management is working to use that compression to drive more room nights and higher rates.

Speaker Change: I don't think its because of.

Speaker Change: The brilliance.

Speaker Change: And manage it I think.

Speaker Change: It's a combination of the work that Patrick and his team do daily in the managing of the managing of the cost structures of these businesses.

Speaker Change: That was an ultimate thank you. Thank you Colin.

Speaker Change: Alright, I appreciate that that's helpful. And then just one more on the entertainment segment, you've made a number of significant strides over the past year opening up the old Red Las Vegas repositioning to category 10 no.

Speaker Change: A major renovation of block 21, so just curious if you have any other material investment or expansion plans over the next year or two that you could highlight on the entertainment side.

Speaker Change: The thing that we're most excited about is our investment in southern entertainment as another live venue opportunity.

Speaker Change: Does that help.

Speaker Change: Yeah, that's very helpful comments I appreciate all the color there. Thank you.

Speaker Change: Thank you.

Speaker Change: And that's a really.

Speaker Change: Yeah.

Speaker Change: Sort of an effective platform for light.

Speaker Change: Okay.

Speaker Change: Light light sort of capital intensity and provides access to really interesting entertainment destinations pardon me and a fan base that complements our existing fan base.

Speaker Change: Who's next David Yes.

Speaker Change: We will take our next question from Jay Kornreich with Wedbush Securities. Please go ahead. Your line is open.

Alright. Thanks, so much I wanted to ask about just the pace of group a group revenue on the books for 2026 being up 11%, which I believe you said reflects ADR growth of four 5%.

Speaker Change: Cross the Ryman, the Opry and Austin City limits in Austin, Texas.

Speaker Change: I would say Joe It is fair to say that there are a number of things that we're working on that.

Speaker Change: Curious closer to 2026 and are able to book into many of the finished capex projects and you've outlined a rate driven strategy you think there is.

Speaker Change: Basically at this at this point in time, we're not prepared to talk about but there are a lot of there are a lot of different opportunities that we're looking at as it relates to that business I think I think the challenge is really more prioritization.

Speaker Change: Opportunity to push that four 5% rate growth even higher.

Speaker Change: Yes, certainly there is keep keep in mind.

Speaker Change: <unk>.

Speaker Change: Of what.

Speaker Change: Florida opportunity we focus on.

Speaker Change: Of.

Speaker Change: When you look at where revenue on the books is relative to prior years as we approach the travel date right. We're moving towards a 50 50 points of occupancy on the books. So as we enter a year typically the differential in revenue on the books is going to be pure.

Speaker Change: Okay understood. Thank you.

Speaker Change: Thank you.

Speaker Change: And we'll take our next question from Chris <unk> with Deutsche Bank. Please go ahead. Your line is open.

Chris <unk>: Hey, good morning, everyone. Thanks for squeezing me in on the questions.

Chris <unk>: So I guess, maybe we are beating a horse, but we didn't expect to be beating but if I can kind of go back to the corporate youre, making all these investments.

Speaker Change: The rate typically.

Speaker Change: But that's the opportunity the opportunity is to continue to push that rate and grow that 6% higher as we move towards the year because as the booking window shortens Youre also going to book more and more corporate business, which typically travels at a higher rate and just to add to that I would tell you that the hotels are going through right now because they are ahead and more aggressive.

Chris <unk>: Partly to attract a.

Chris <unk>: More premium corporate group customer rate I guess is there any way to frame up how that I guess ideal premium corporate customer looks like versus association or even a kind of a non premium corporate group, whether it's size or length of stay or right round room spend and if it if it's smaller does that.

Speaker Change: <unk>, what we call cutting the group room blocks, which is lowering the expectations of how much will how much.

Well travel so that they free up more space and more rooms to sell into and with that compression that can sell it at higher rates. So they are all over it revenue management is working to use that compression to drive more room nights at higher rates.

Chris <unk>: Do we have to think about it being harder potentially to fill some of these leisure weekend spots or are there more shoulder periods. I mean any color you can add would be great. Thank you.

Chris <unk>: Hey, Chris This is Patrick.

Speaker Change: Alright, I appreciate that that's helpful. And then just one more on the entertainment segment you made a number of significant strides over the past year opening up the old Red Las Vegas repositioning to category 10 major renovation of block 21. So just curious if you have any other material investment or expansion plans over the next year or two that you could highlight on the entertainment side.

Speaker Change: So let's hit a couple of things that you mentioned.

Chris: Rate is generally higher it's hard to put a specific percentage or a number on that just generally on average it is higher outside the room spend though is significantly higher with many of those corporate groups.

Speaker Change: We've seen.

Speaker Change: Sure.

Speaker Change: Levels of five or $600 per person spend outside the room per day with some of these corporate customers and so that is a tremendously strong number two the size question theyre not materially different you would think that well youre associations are going to be massive there's lots of different corporate customers lots of.

Speaker Change: The thing that we're most excited about is our investment in southern entertainment as another live venue opportunity.

Speaker Change: That's a really.

Speaker Change: Sort of an effective platform for.

Speaker Change: Light light sort of capital intensity and provides access to really interesting entertainment destinations pardon me and a fan base that complements our existing fan base.

A different group sizes, but there are a lot of corporate groups out there that are very large and are growing and are constantly encouraging us to grow with them I can think of three of our top customers who are constantly asking me when are you going to expand opryland, winning and expand national they're constantly looking for us to expand further because they.

Speaker Change: Across the Ryman, the Opry and Austin City limits in Austin, Texas.

Speaker Change: I would say Joe It is fair to say that there are a number of things that we're working on that.

Speaker Change: Basically at this point in time, we're not prepared to talk about but there are a lot of there are a lot of different opportunities that we're looking at as it relates to that business I think I think the challenge is really more prioritization.

Speaker Change: Have more of their book of business, they would like to turn it over to us they are extremely valuable to us and so.

Speaker Change: It is generally a higher rate it is usually a very solid outside the room spend but from a sizing perspective, there's really no difference because it's such a large universe of groups that you can choose from.

Speaker Change: Of what of what opportunity we focus on.

Speaker Change: Okay understood. Thank you.

Speaker Change: Thank you.

Speaker Change: Our purchase of hill country, as well as helped us sort of.

Speaker Change: We will take our next question from Chris <unk> with Deutsche Bank. Please go ahead. Your line is open.

Speaker Change: Think about the opportunity here with this high rated or higher rated corporate business because when you look at the the rate differential between what is being accomplished in that hotel versus our existing hotels. This is quite a bit of difference.

Hey, good morning, everyone and thanks for squeezing me in on the questions.

Speaker Change: So I guess, maybe we are beating a horse that we didn't expect to be beating but if I can kind of go back to the corporate youre, making all these investments.

Speaker Change: And that is exciting stuff for us I think and I think it's important Chris just to recognize that what we're talking about is we're talking about incremental change change at the margin. We're not talking wholesale change. They will continue and will continue to have a substantial.

Speaker Change: Partly to attract.

Speaker Change: More premium corporate group customer rate I guess is there any way to frame up how that I guess ideal.

Speaker Change: Mhm corporate customer looks like versus association or even a kind of a non premium corporate group, whether it's size or length of stay or right or out of room spend and if it if it's smaller does that do.

Speaker Change: Book of Association business.

Speaker Change: And I also think it's important to repeat that.

Speaker Change: Our goal here is to move the rate across all of our segments and to attract and drive and sell to higher rated business whether that.

Speaker Change: We have to think about it being harder potentially to fill some of these leisure weekend spots or are there more shoulder periods. I mean any color you can add would be great. Thank you.

Speaker Change: Corporate business Association business or Smurf business.

Speaker Change: Hey, Chris This is Patrick.

Speaker Change: So let's hit a couple of things that you mentioned.

Speaker Change: Yes.

Speaker Change: What this really comes down to is us increasing our.

Speaker Change: Rate is generally higher it's hard to put a specific percentage or a number on that just generally on average it is higher outside the room spend though is significantly higher with many of those corporate groups.

Speaker Change: Skill and capability its stacking groups and with one another so that they still feel that they have a unique experience, but we filled the house.

Speaker Change: We've seen.

Speaker Change: And a more optimal way.

Speaker Change: Levels of five or $600 per person spend outside the room per day with some of these corporate customers and so that is a tremendously strong number to the size question theyre not materially different you would think that well youre associations are going to be massive there's lots of different corporate customers lots of <unk>.

Speaker Change: And.

Speaker Change: At the end of the day, we have such a small share of this market.

Speaker Change: And we're retaining so many of our customers and Thats whats driving these expansions.

Speaker Change: Two to move our share up marginally. This is this is a very interesting time for us.

Speaker Change: <unk> group sizes, but there are a lot of corporate groups out there that are very large and are growing and are constantly encouraging us to grow with them I can think of three of our top customers who are constantly asking me when are you going to expand opryland, winning and expand national when it they're constantly looking for us to expand further because they have.

Speaker Change: Yes.

Chris: Chris any other questions.

Speaker Change: No I really appreciate all that color is very helpful. Thanks, Thanks, guys. Thanks.

Mike: Thanks, Mike.

Speaker Change: Okay great.

Speaker Change: Yes.

Speaker Change: We'll take our next question from John Decree with CBRE. Please go ahead. Your line is open.

More of their book of business, they would like to turn it over to US they are extremely valuable to us and so.

John Decree: Thank you good morning, all maybe.

Speaker Change: Maybe just one question I think in prepared remarks, Jenifer, you talked a little bit about some of the conservatism that's built into the low end of our guidance.

Speaker Change: Just curious if you could talk to some of the variables that you think about that might get you to the high end of the guidance and I have to count that as leader in economic variation to expectations, but there is some ability to manage disruption so yes.

Speaker Change: Purchase of Hill country, as well as helped us sort of.

Speaker Change: Yes. That's my question that's all thank you.

Speaker Change: I think you hit it on all the areas that we identified that could drive potential upside and a lot of that is the variability in leisure we have less.

Speaker Change: Visibility earlier on and do that on the group side, we know what's on the books and.

Speaker Change: And that is exciting stuff for us I think it's I think it's important Chris just to recognize that what we're talking about is we're talking about incremental change change at the margin. We're not talking wholesale change they'll continue we'll continue to have a substantial.

Speaker Change: To the extent that we can see better performance from the leisure guest.

Speaker Change: That can help get us to at the top end.

Speaker Change: We have outlined in the guidance.

Speaker Change: Yes.

Speaker Change: Okay.

Book of Association business.

Speaker Change: And the construction disruption side I would just say that you know.

Speaker Change: <unk>.

Speaker Change: And I also think it's important.

Speaker Change: <unk>.

Speaker Change: We've made a lot of enhancements to our design and construction team.

Speaker Change: Pete.

Speaker Change: Our goal here is to move the rate across all of our segments and to attract and drive and sell to higher rated business whether that.

Speaker Change: Over this past.

Speaker Change: Eight months or so.

Speaker Change: As well as processes in terms of some of the some of the vendors and we use our supply chain et cetera, So I think that.

Speaker Change: Corporate business Association business or Smurf business.

Speaker Change: Yes.

Speaker Change: We feel we feel confident in our ability to manage the disruption going forward tier extend I think.

Speaker Change: What this really comes down to is us increasing our <unk>.

Speaker Change: Skill and capability it stacking groups and with one another so that they still feel that they have a unique experience, but we filled the house.

Speaker Change: To your comment to the extent that we can.

Speaker Change:

Speaker Change: Improve on kind of what we've outlined that's potential upside as well.

Speaker Change: And a more optimal way.

Speaker Change: Great. Thank you very much I appreciate it.

Speaker Change: And we you know at.

Speaker Change: David I think one more question.

Speaker Change: At the end of the day, we have such a small share of this market.

Speaker Change: At the top of the App.

Speaker Change: Yeah.

Speaker Change: And we're retaining so many of our customers and Thats whats driving these expansions.

Speaker Change: Perfect. Then we will take our last question from David Katz with Jefferies. Please go ahead. Your line is open.

David Katz: Thanks very much.

Speaker Change: To to move that share up marginally. This is this is a very interesting time for us.

Speaker Change: Under the wire.

Speaker Change: I wanted to just get your perspective on.

Mark: Mark you said earlier, we're talking about to change on the margin.

Speaker Change: Yes.

Speaker Change: Chris any other questions.

Speaker Change: No I really appreciate all that color very helpful. Thanks, Thanks, guys. Thanks.

Speaker Change: Weather.

Speaker Change: There.

Speaker Change: I think everybody is sort of trying to circle some of the drivers of what we're what we're processing.

Mike: Thanks, Mike.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: We'll take our next question from John Decree with CBRE. Please go ahead. Your line is open.

Is there any competition in certain markets right.

John Decree: Thank you good morning all.

Speaker Change: Any.

Speaker Change: Maybe just one question I think in prepared remarks, Jenifer, you talked a little bit about some of the conservatism that's built into the low end of our guidance.

Speaker Change: Anything you could point to and I I ask the question of contracts.

Speaker Change: I know youre properties really there's nothing quite like them.

Speaker Change: Right.

Speaker Change: Curious if you could talk to some of the variables that you think about that might get you to the high end of the guidance and I have to tell them that is leisure and economic variation to expectations, but there is some ability to manage disruption so yes.

Speaker Change: Was there any marginal competition, we might be able to point to that may be having some impact.

Speaker Change: So if you run it through the markets.

Speaker Change: No.

Speaker Change: Theres nothing being built there's nothing big.

Speaker Change: Yes. That's my question that's all thank you.

Obviously.

I think you hit it on all the areas that we identified that could drive the potential upside and a lot of that is the variability in leisure we have less.

Speaker Change: The <unk> that we see in certain mark to markets are competitive I mean, it's individual assets some of the Marriott Marquis.

Speaker Change: Visibility earlier on and do that on the group side, we know what's on the books and.

Speaker Change: When adult those hotels are not transforming themselves that's correct.

Speaker Change: To the extent that we can see better performance from the leisure guests.

Speaker Change: Running themselves the way they've historically around themselves no.

Speaker Change: That can help get us to at the top end.

Speaker Change: I wouldn't I don't think there's anything new coming on now.

We have outlined in the guidance.

Speaker Change: I mean, the only product that looks like ours thats coming on is.

Speaker Change: Okay.

And the construction disruption side I would just say that you know.

Speaker Change: Specific in yet right.

Speaker Change: Yes.

Speaker Change: <unk>.

Speaker Change: That's been part of the rotation more motivated by our own internal drive to try and figure out how to enhance and drive growth for the future for our portfolio not because we are feeling pressure from someone else, we see the opportunity with where groups are growing where the opportunity lies too to remix and on the margin and enhance our.

Speaker Change: We've made a lot of enhancements to our design and construction team.

Speaker Change: Over this past.

Speaker Change: Eight months or so.

Speaker Change: As well as processes in terms of some of the some of the vendors and we use our supply chain et cetera, So I think that.

Speaker Change: We feel we feel confident in our ability to manage the disruption going forward to your extent I think.

Speaker Change: Our revenue picture and we're pursuing that not because someone is putting pressure on us and my David My comment as it relates to the change at the margin is that what I was trying to communicate was that the goal here is not to go to 80 or 90% corporate right. We're trying to move it.

Speaker Change: To your comment to the extent that we can.

Speaker Change:

Speaker Change: Improve on kind of what we've outlined.

Speaker Change: Thats potential upside as well.

Speaker Change: Great. Thank you very much I appreciate it.

Speaker Change: Four or five points.

Speaker Change: David I think one more question.

Speaker Change: That type of mix change, but that type of mix change can improve profit dramatically.

Speaker Change: At the top of the App.

Speaker Change: Perfect. Then we will take our last question from David Katz with Jefferies. Please go ahead. Your line is open.

Speaker Change: Okay.

Speaker Change: Understood.

Speaker Change: I appreciate it thanks, so much.

David Katz: Thanks very much.

Speaker Change: Under the wire.

Speaker Change: Thank you thanks, David Thank you.

Speaker Change: I wanted to just get your perspective on.

Speaker Change: David.

Speaker Change: Uh huh.

Speaker Change: Thank you for.

Speaker Change: Mark you said earlier, we're talking about to change on the margin.

Speaker Change: Presiding over this this morning, and we appreciate our investors analysts being on this call is there any questions that you have follow up questions you know how to get hold of.

Weather.

Speaker Change: There.

Speaker Change: I think everybody is trying to circle some of the drivers of what we're what we're processing.

Jennifer Hudson: IR team, Jennifer Hudson sooner Mark.

Speaker Change: Is there any competition in certain markets right.

Speaker Change: Thank you and.

Jennifer Hudson: But we will see you soon.

Speaker Change: Any.

Speaker Change: Anything you could point to.

Jennifer Hudson: Okay.

Jennifer Hudson: Today's program. Thank you for your participation and you may now disconnect.

Speaker Change: I asked the question of the contract.

Speaker Change: I know your properties, there really there's nothing quite like them, but.

Speaker Change: Was there any marginal competition, we might be able to point to that may be having some impact.

Speaker Change: So if you run it through the markets and Ive had.

Theres nothing being built there's nothing.

Speaker Change: Obviously.

Speaker Change: The jws that we see in certain mark to markets are competitive I mean, it's individual assets some of the Marriott Marquis.

Speaker Change: Those hotels are not transforming themselves.

Theres, a very that running themselves the way they've historically run themselves no.

Speaker Change: I Wouldnt I don't think Theres anything new coming on now.

Speaker Change: I mean, the only product that looks like ours thats coming on is.

Speaker Change: Pacific in yet right.

Speaker Change: That's part of the rotation more motivated by our own internal drive to try and figure out how to enhance and drive growth for the future for our portfolio not because we are feeling pressure from someone else. So we see the opportunity with where groups are growing where the opportunity lies too to remix and on the margin and enhance our.

Speaker Change: Revenue picture and we're pursuing that not because someone is putting pressure on US yes, David My comment as it relates to the change at the margin is that what I was trying to communicate was that the goal here is not to go to 80 or 90% corporate right. We're trying to move it.

Speaker Change: Four or five points.

Speaker Change: That type of mix change, but that type of mix change can improve profit dramatically.

Speaker Change: Understood.

Speaker Change: I appreciate it thanks, so much.

Speaker Change: Thank you Dave.

Speaker Change: Thank you.

Speaker Change: David.

Speaker Change:

Thank you for.

Speaker Change: Presiding over this this morning, and we appreciate our investors analysts being on this call is there any questions that you have follow up questions. You know how to get hold of the IR team Jennifer Hudson Central Mark.

Speaker Change: Thank you and.

Speaker Change: We'll see you soon.

Today's program. Thank you for your participation and you may now disconnect.

Speaker Change: You're listening to performances from the stage of the World famous Grand Ole Opry.

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Speaker Change: Good song.

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