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Investing.com - JPMorgan initiated coverage on Ryman Hospitality Properties (NYSE:RHP), currently trading at $98.79 with a market capitalization of $6.2 billion, with an overweight rating and a price target of $117.00 on Monday. According to InvestingPro data, the company maintains a "GREAT" financial health score of 3.42.
The investment bank highlighted that RHP derives 75% of its room nights from the group segment, which provides superior earnings visibility with an average booking window of 2.9 years compared to weeks or months for business transient and leisure travelers. This strategic focus has contributed to the company’s solid revenue growth of 9.48% over the last twelve months.
JPMorgan noted that Ryman’s customers tend to be sticky, with over 50% of room nights coming from multi-year agreements, reflecting the risk-averse nature of meeting planners who typically book the properties.
The firm pointed to attractive industry supply and demand dynamics supporting its positive outlook, mentioning that few new group-focused mega-properties are being constructed due to tight financing and limited public incentives.
JPMorgan also emphasized that fiscal year 2026 group demand is pacing up for virtually every lodging company under its coverage, with RHP specifically pacing 9% higher year-over-year.
In other recent news, Ryman Hospitality Properties has announced its acquisition of the JW Marriott Phoenix Desert Ridge Resort & Spa for $865 million. The acquisition is expected to be accretive to Ryman’s adjusted funds from operations per share by 2026. To finance this purchase, Ryman plans to raise $600 million through a private placement offering of senior notes, supplemented by a public offering of common stock and cash on hand. The company has launched a public offering of 2,300,000 shares, with an option for underwriters to purchase an additional 345,000 shares. This strategic acquisition aligns with Ryman’s goal to diversify its portfolio geographically and strengthen its presence in the Southwest. S&P Global Ratings recently upgraded Ryman’s credit rating to ’BB-’ from ’B+’, citing the company’s continued asset diversification and resilience in group travel. Truist Securities has maintained a Buy rating for Ryman, with a price target of $127, highlighting the acquisition’s potential positive impact on the company’s financial performance. Ryman is also undergoing a $1 billion capex cycle to enhance its existing properties, with a focus on room renovations and meeting space additions.
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