Ryman Hospitality to raise $600 million for resort acquisition

NASHVILLE - Ryman Hospitality Properties, Inc. (NYSE: RHP), a real estate investment trust specializing in upscale convention center resorts with a market capitalization of $5.93 billion, has announced a private placement offering of senior notes to fund a portion of its acquisition of a luxury resort. According to InvestingPro data, the company maintains strong financial health with liquid assets exceeding short-term obligations. The company’s subsidiaries plan to offer up to $600 million in senior notes due 2033, which will be unsecured obligations guaranteed by the company and certain subsidiaries.

The proceeds from the offering are earmarked for the approximately $865 million purchase of the JW Marriott Phoenix Desert Ridge Resort & Spa, with the balance of the acquisition cost to be covered by a public offering of common stock and cash on hand. The common stock offering, involving 2,600,000 shares at $96.20 each, is expected to close on May 21, 2025, subject to customary closing conditions.

Should the acquisition not proceed, the notes will be redeemed with a special mandatory redemption at the issue price plus accrued interest. The offerings of the notes and the common stock are independent of each other and are not contingent upon the completion of the other.

The notes will be available to qualified institutional buyers and certain non-U.S. persons in compliance with applicable securities laws. These notes have not been registered under the Securities Act of 1933 and will not be offered or sold in the U.S. without registration or an exemption from registration requirements.

Ryman Hospitality Properties owns significant holdings in the hospitality sector, including a number of large convention center hotels and entertainment venues across the United States. The company’s portfolio is managed by Marriott International and includes over 11,000 rooms and 3 million square feet of meeting space. With a current dividend yield of 4.64% and strong analyst consensus, InvestingPro analysis reveals 8 additional key insights about RHP’s investment potential, available in the comprehensive Pro Research Report.

The information in this article is based on a press release statement from Ryman Hospitality Properties, Inc. The company cautions that forward-looking statements are subject to risks and uncertainties that could cause actual outcomes to differ materially from those expressed or implied by such statements.

In other recent news, Ryman Hospitality Properties reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved an earnings per share of $1, significantly higher than the projected $0.69, while revenue reached $587.28 million, exceeding the forecast of $546.4 million. Additionally, Ryman Hospitality announced a definitive agreement to acquire the JW Marriott Phoenix Desert Ridge Resort & Spa for $865 million, with the transaction expected to close in the second or third quarter of 2025. This acquisition aligns with Ryman’s strategy and is anticipated to enhance its portfolio, with operational synergies and long-term value creation opportunities highlighted by CEO Mark Fioravanti.

Furthermore, Ryman Hospitality launched a public offering of 2,300,000 shares of its common stock to help finance the acquisition. Morgan Stanley, BofA Securities, J.P. Morgan, and Wells Fargo Securities are involved as joint book-running managers for this offering. Meanwhile, shareholders approved key proposals at the company’s annual meeting, including the election of directors, executive compensation, and the appointment of Ernst & Young LLP as the independent auditor for 2025. These developments reflect continued investor confidence in Ryman Hospitality’s governance and strategic direction.

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