Ryman Hospitality Earnings, Income Show Increases in 2017

Grand Ole Opry
Courtesy RHP
– Grand Ole Opry
Among Ryman Hospitality Properties is the Grand Ole Opry.

Proving the country lifestyle is alive and well, Ryman Hospitality Properties Inc., the owner of the Grand Ole Opry and Ryman Auditorium in Nashville, grew revenues 3 percent to $1.18 billion in 2017, according to its earnings release. Company-wide net income increased 11 percent to $176 million. Shares of Ryman (NYSE:RHP) were up 3.2 percent in midday trading Feb. 23.

Ryman received 90 percent of its revenue from the properties such as the Gaylord Opryland in Nashville; Gaylord Palms outside of Orlando, Fla.; and Gaylord Texan in the Dallas-Fort Worth, Texas market. Ryman is a real estate investment trust, a corporate entity that specializes in real estate and real estate mortgages and, by definition, must pay 90 percent of its taxable income as dividends to its shareholders. In 2017, Ryman paid a dividend of $3.20 per share for 51.6 million diluted shares.

Ryman’s entertainment division grew its revenue 14 percent to $125 million. The company entertainment portfolio is a complementary collection of entertainment properties, including the 4,400-capacity Grand Ole Opry House, WSM-AM station in Nashville, and the 2,300-seat Ryman Auditorium, the Pollstar Theater of the Year for the past eight years. Entertainment accounted for 10 percent of Ryman’s total income. Due to it high operating income margin – 26 percent in 2017 – entertainment accounted for 17 percent of operating income compared to 10 percent of Ryman’s gross revenue.

With the investments Ryman is putting into its entertainment division, “we believe we are in a prime position to continue expanding our footprint and influence in the years ahead,” chairman and chief executive Colin Reed said in a statement.

Ryman’s stable of properties also includes Ole Red, a restaurant/entertainment space built in partnership with country star Blake Shelton. The first Ole Red debuted in Shelton’s hometown of Tishomingo, Okla., in the third quarter of 2017. An Ole Red in downtown Nashville will launch in April. Ryman opened The Opry City Stage at Times Square in New York City in 2017, putting the Opry brand in front tourists from around the world.