Ryman Hospitality Properties, Inc. (reit) · NYSE:RHP
Ryman Hospitality Properties, Inc. (reit) — Resortquest International — Merger or Acquisition (September 2003)
42 slides from Ryman Hospitality Properties, Inc. (reit)'s merger presentation, Sep 30, 2003
Slide 1: Gaylord Entertainment Company Presentation to Morgan Keegan, Inc.
Gaylord Entertainment Company Presentation to Morgan Keegan, Inc. September 30, 2003 ^ Memphis, Tennessee defined by our differences
Slide 2: Forward-looking statements disclaimer
The information contained in this slide presentation is summary information that is intended to be considered in the context of SEC filings and other public announcements made by Gaylord Entertainment (the "Company"), by press release or otherwise, from time to time. The Company undertakes no duty o
Slide 3: Overview of Gaylord Entertainment
Overview of Gaylord Entertainment
Slide 4: Strategic transformation
Strategic transformation $330 million assets sold Media & Entertainment Hospitality April 2001 Today Non-Core
Slide 5: Gaylord Hotels
GAYLORD HOTELS
Slide 6: Gaylord Hotels - overview
Gaylord Hotels - overview Gaylord Hotels is the only lodging brand focused solely on the large group meetings segment of the hospitality industry market estimated to be $102 billion (1) our core customers are meeting planners who service large groups (200+ peak room nights) We provide custom-tailore
Slide 7: Gaylord Hotels - brand development
Gaylord Hotels - brand development Superior Product Superior Service Entertaining Environment Customers: Meeting Planners & Attendees Sustainable Advantage Brand Development Superior Knowledge & Relationships Customer behavior drives our brand development
Slide 8: Gaylord Hotels - large group focus
Gaylord Hotels - large group focus Group Non-Group East 82 18 82% of our business comes from group business; 19% of groups generate 87% of group room nights Note: Information based on 2002 occupancy. 82% Group 18% Non-Group Total Room Nights 1046 Star (600+) Target (201-599) Exec. Mtgs. (10-200) 121
Slide 9: Gaylord Hotels - customer characteristics
Gaylord Hotels - customer characteristics The booking characteristics of our customers provide revenue visibility and stability Average Booking Window 49% 11% 18% 22% Customer Segmentation Association Corporate Other Group Leisure 0 1 2 3 4 5 YEARS 4.2 2.5 2.1 Note: Information based on current book
Slide 10: Gaylord Hotels - expansion
Gaylord Hotels - expansion Satisfaction = Loyalty = Rotation = Growth San Diego, CA Phoenix, AZ Dallas, TX Washington, D.C Orlando, FL Nashville, TN Top convention markets* Existing site Under construction ? ? ? ? ? ? ? ? ? ? ? Los Angeles, CA Las Vegas, NV ? San Francisco, CA Chicago, IL Atlanta, G
Slide 11: Customer satisfaction improved
Customer satisfaction improved... Measure customer satisfaction through an outside firm Guest satisfaction ratings increased dramatically in 2002, based on percentage of top-rated scores Overall satisfaction -- 78% (3Q01) to 84% (2Q03) Price/value -- 64% (3Q01) to 77% (2Q03) Guest satisfaction incen
Slide 12: Strong 2002 bookings
....which led to strong 2002 bookings (thousands) Room nights booked (1) 1999 2000 2001 2002 2003E Nashville 710 480 475 675 0 Palms 200 580 250 275 0 Texas 40 110 -25 250 0 Est. Low 0 0 0 0 1100 Est. High 0 0 0 0 200 (1) For all future periods.
Slide 13: Gaylord Hotels - prospect inventory
Gaylord Hotels - prospect inventory Roomnights Prospect room nights
Slide 14: Gaylord Hotels - rotation bookings
Gaylord Hotels - rotation bookings 2002 multi-property Star account bookings as a percentage of total Star account bookings. 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 East 0.295 0.308 0.366 0.586 0.196 0.37 29.5% 30.8% 36.6% 58.6% Rotation bookings (1) 19.6% 37.0%
Slide 15: Gaylord Hotels - product scale
Gaylord Hotels - product scale Guest rooms Convention & meeting space Restaurants Gaylord Opryland Nashville 2,881 600,000 sq. ft. 12 (1) Gaylord Palms Florida 1,406 400,000 sq. ft. 3 Gaylord Opryland Texas 1,511 400,000 sq. ft. 4 Our hotels are large and nationally-recognized. Unique entertainment
Slide 16: Gaylord Hotels - properties
Gaylord Hotels - properties Gaylord Hotels - properties Paint.Picture Gaylord Opryland Nashville Indoor atriums / entertainment Gaylord Palms State-of-the-art meeting facilities Gaylord Opryland Texas
Slide 17: Nashville attractions
Nashville attractions Nashville attractions
Slide 18: Hospitality segment profitability
....as has our hospitality segment profitability ($ millions) (1) EBITDA and EBITDA margin are used in this presentation because Gaylord believes they allow for a more complete analysis of operating performance by presenting an analysis of operations separate from the earnings impact of capital tran
Slide 19: Gaylord Hotels - financing strategies
Gaylord Hotels - financing strategies As Gaylord Hotels continues to mature, we will evaluate ways to unlock capital from our real estate holdings to accelerate growth Recycle capital invested in real estate Increase return on invested capital Move to joint-venture / management fee model Utilize cas
Slide 20: Grand Ole Opry
Slide 21: Grand Ole Opry - overview
Grand Ole Opry - overview An American icon with a 75+ year heritage as the cornerstone of country music Nationally and internationally renowned brand with extraordinary awareness and imagery 70 million "Country Lifestyle" consumers in the United States Opportunity to strategically position the brand
Slide 22: Grand Ole Opry - brand awareness
Grand Ole Opry - brand awareness West 85% Midwest 89% South 83% Northeast 78% The Grand Ole Opry is among the most widely recognized "Country Lifestyle" brands in the United States
Slide 23: Grand Ole Opry - brand imagery
Grand Ole Opry - brand imagery Consumers describe the Grand Ole Opry with overwhelmingly positive attributes Base: Those who were at least somewhat familiar with the Grand Ole Opry; numbers reflect percentage of those who felt the attributes described the Opry "very well" or "well". Source: FutureBr
Slide 24: Grand Ole Opry - brand development
Grand Ole Opry - brand development Core Proposition Value to artists/ record labels Artist demand for appearance High quality content Increased brand value Distribution
Slide 25: Grand Ole Opry - distribution
The building blocks have been established through alliances with distribution partners Grand Ole Opry - distribution Cable Television (US) reaches 25 million consumers Cable Television (Canada) reaches 8 million consumers Terrestrial Radio (FM/AM) 205 stations; 2 million weekly cume Terrestrial Radi
Slide 26: Brand extension
Brand Extension Apparel Audio Video Touring Shows Cruises Collectibles Communicate Owned & Operated Businesses ResortQuest Gaylord Hotels Attractions Core Proposition Value to artists/ record labels Artist demand for appearance High quality content Increased brand value Distribution
Slide 27: Non-core assets
Non-core assets Bass Pro Shops Nashville Predators Various real estate 19.0% 12.8% Ownership
Slide 28: Overview of operating/financial metrics
Overview of operating/financial metrics
Slide 29: Total RevPAR drives operating margins
Total RevPAR drives operating margins Note: Example case is for discussion purposes only. Assumes only Palms and Opryland Nashville rooms are in service. Business mix and operating margins are indicative of Gaylord Hotels business model but are not indications of historical or future operating perfo
Slide 30: EBITDA sensitivity
EBITDA sensitivity 10,000 room nights = $1.5 1 occupancy point = $2.3 $1 ADR = $1.1 1% increase in EBITDA margin = $3.6 Note: Assumes only Palms and Opryland Nashville in operation. $150 average ADR, $150 F&B and other revenue and 50% average margin. EBITDA is sensitive to changes in certain operati
Slide 31: Financial transformation
Financial transformation LTM 2Q02 (1) LTM 2Q03 (1) Revenues $346.1 $429.5 EBITDA (3) 39.8 69.0 % margin (3) 11.5% 16.1% Total debt $403.2 $470.7 Net debt (2) 312.9 297.9 Net debt / EBITDA 7.9x 4.3x (1) Last twelve months ended. (2) Defined as total debt less cash and equivalents of $172.9 million an
Slide 32: ResortQuest
aK RESORTQUEST INTERNATIONAL RELAX.
Slide 33: Anticipated benefits
Anticipated benefits Provide Gaylord significant growth with limited capital expenditure Vacation home management industry favorable characteristics large and growing market fragmented market with "mom-and-pop" competition Build unique demand delivery system through Gaylord's millions of hospitality
Slide 34: Gaylord customer interface
Gaylord customer interface The significant volume of customers associated with our various businesses gives us the ability to capitalize on tremendous cross-selling activity into ResortQuest properties 19.1% ownership interest in company Large customer database (3 million) Customers generally have a
Slide 35: "Country Lifestyle" consumers
"Country Lifestyle" consumers Because of cross-overs, approximately 30 percent of "Country Lifestyle" consumers indicate they have stayed in rental accommodations more than once in the past 2 years Source: Future Brand, 2002 Survey. Source: Future Brand, 2002 Survey.
Slide 36: Financial impact of brand maturity
Financial impact of brand maturity There is a significant opportunity for EBITDA growth as market share escalates and margin improves (1) Assumed for illustrative purposes. Analysis assumes the industry reaches $12 billion in gross lodging revenue over the next five years. (2) Potential RZT manageme
Slide 37: Vision for the future
Vision for the future AM, cable, satellite distribution complete FM distribution limited Limited product set 3 - 5 Years Tomorrow Today Non-Core 3 property platform Invested own capital to prove business model Significant real estate ownership Extensive customer relationships Non-Core Assets Monetiz
Slide 38: Guidance
Guidance Gaylord Hotels FY2003 RevPAR 4% to 7% growth FY2003 capex $230 to $240 million 3Q03 RevPAR -3% growth 3Q03 revenue $95 to $98 million 3Q03 EBITDA margin 10% range 3Q03 capex $55 to $70 million 4Q03 RevPAR -2% growth FY2004 RevPAR (1) estimated to be flat FY2005-07 RevPAR (1) high single-dig
Slide 39: Additional information about the merger
This communication is not a solicitation of a proxy from any security holder of Gaylord Entertainment Company or ResortQuest International, Inc. Gaylord and ResortQuest intend to file a registration statement on Form S-4 with the SEC in connection with the merger. The Form S-4 will contain a prospec
Slide 40: Gaylord financial reconciliation
Gaylord financial reconciliation (1) Last twelve months, as of 2Q03.
Slide 41: Gaylord financial reconciliation
Gaylord financial reconciliation (1) Last twelve months, as of 2Q03.
Slide 42: Gaylord Entertainment
GAYLORD ENTERTAINMENT™ K RESORTQUEST . INTERNATIONAL GAYLORD HOTELS RELAX. GRANDOLE OPRY 43
Resortquest International — Merger or Acquisition (September 2003) on 6ix