Ryman buys Grande Lakes, funds it with stock and debt, and eyes Entertainment sale
Record quarter and raised outlook Ryman reported record quarterly revenue of $749 million, with same-store hotel revenue up 6.5% on higher room rates, and raised its full-year profit outlook. Strong group bookings and entertainment results show the core business is growing, which supports the stock price.
This is the fundamental earnings strength that underpins the period's positive moves.
$1.38B Grande Lakes acquisition, funded by stock and debt Ryman agreed to buy the Grande Lakes Orlando resorts for $1.38 billion, adding 1,592 rooms and expected to boost per-share cash flow in 2027. It funded the deal with 5.865 million new shares and $700 million of 6.25% bonds, which dilutes current owners and adds about $44 million in yearly interest.
The deal is the period's biggest event, adding growth but also dilution and debt that weigh on the stock.
Analysts raise price targets on growth optimism Several Wall Street firms raised their RHP price targets, with Wells Fargo at $136, and a fair-value estimate rose to $134.15. Investors are growing more confident that heavy spending in 2025 and 2026 will speed up growth in 2027, though some analysts warn the shares may have run too far.
Analyst upgrades reflect and reinforce the positive sentiment driving the stock.
Possible sale of Entertainment segment Ryman is exploring a sale of its non-REIT Entertainment segment, which could turn it into a pure hotel REIT and raise cash for new investments or shareholder returns. This potential move adds a new reason for investors to expect value creation.
A possible Entertainment sale is a fresh strategic catalyst that could unlock value.