Ryman Hospitality Properties, Inc. (reit) · NYSE:RHP
Ryman Hospitality Properties, Inc. (reit) — Gaylord Entertainment — Investor Presentation (June 2012)
48 slides from Ryman Hospitality Properties, Inc. (reit)'s investor presentation, Jun 1, 2012
Slide 1: Gaylord Entertainment Investor Presentation May 2012
Exhibit 99.1 Gaylord Investor May GAYLORD GRANDOLE 2012Entertainment Presentation HOTELS® OPRY® Company
Slide 2: Forward-Looking Statements and Important Disclosures
FORWARD This underlying among the ability may are forward-looking Gaylord described required be slide to other greater Entertainment remain presentation assumptions, approvals LOOKING things, inthan the statements qualified filings expected; theby contains Co. following STATEMENTS and the as made 2m
Slide 3: Additional Information
ADDITIONAL The proposed CAREFULLY proxy addition, request Gaylord Company statement toEntertainment stockholders REIT the Company’s expects AND conversion. INFORMATION will IN bemay to Co. THEIR mailed restructure Secretary obtain 3STOCKHOLDERS to ENTIRETY AND the free atits Company’s Gaylord copies
Slide 4: Interests of Participants
INTERESTS The regarding December respect Gaylord Company ofEntertainment the 31,OF Company’s proposed 2011, andPARTICIPANTS itswhich directors Co. REIT directors was 4 conversion and filed and executive with executive will the officers SEC be contained officers on may April isbe in 3, setdeemed the
Slide 5: Table of Contents
TABLE GAYLORD GRANDOLE I. II. III. IV. V. Gaylord Situation Capitalization Unique Growth Lodging OF Entertainment Portfolio Overview Opportunities CONTENTS HOTELS® REIT OPRY® Comparison andCo. Focus 5
Slide 6: I. Situation Overview
I. SITUATION GAYLORD ENTERTAINMENT® OVERVIEW
Slide 7: Situation Overview
SITUATION Gaylord The For –As I. Assets Atypical Company Shares Overhead Limited High Situation an the Challenge: owner level past Entertainment is have have ability level one Overview costs has few of and OVERVIEW demonstrated consistently of capital built of years, to operator spread the asset gro
Slide 8: The Solution
THE Sell Significantly Work Convert I. Situation the SOLUTION with Gaylord Gaylord world-class Overview reduce brand to tax-efficient corporate property Gaylord and lodging management level overhead Entertainment operator lodging expenses who company REITwill Co. structure 8deliver for significant r
Slide 9: Estimated Value Creation
ESTIMATED Upfront Brand Cash II. Property Corporate Total III. In Marriott’s 4321Access I. Represents Based Property Corporate Non-Recurring Situation addition Recurring Recurring taxes Impact dividend non-recurring recurring conversion, toproceeds on level Marriott level strong level 1to estimated
Slide 10: Process to Evaluate Opportunities to Enhance Shareholder Value
PROCESS alternatives Through In –On through I. This Leveraged Reorganization Sale Situation August November February Mayof transaction the 30, an company assets 2011, TO Overview recovery) designed RFP 2012, based recapitalization 2011, EVALUATE to Gaylord process, as should third Gaylord on tothe a
Slide 11: Transaction Summary
TRANSACTION Sell Marriott Company Iconic –Shareholders Transaction I. After The Property Company Situation thecompany Grand receiving management will expects level Overview expects estimates will manage will Olewill savings require aOpry, receive SUMMARY toprivate to pay incur company the the Gaylor
Slide 12: Illustrative REIT Transaction Structure
ILLUSTRATIVE Current (C-corporation) Public Planned Gaylord Third-party 100% Hotel Long-term “OpCo” Real Lease Opry I. Situation Estate & trademarks/ Owned Shareholders Other (REIT) (taxable management Overview Assets operator and Attractions REIT TRANSACTION Managed intellectual andGaylord Other su
Slide 13: REIT Conversion Timeline
REIT Company May Announcement File June Shareholder August Marriott October Ex-dividend November Conversion January I. Situation proxy 31 CONVERSION tointends statement commence Overview from vote dateofto C-corporation for to sale approve declare with earnings Gaylord TIMELINE management of managem
Slide 14: Strategic Rationale
STRATEGIC Alignment Combines Marriott Up-front $210 Opportunity Transferring Gaylord Leverage Tax Improved Taxable I. Situation efficient million REIT expected is payment Marriott’s cash convention expected with Overview for mgmt structure up-front RATIONALE subsidiary flow cost best-in-class totodi
Slide 15: Why Marriott?
WHY Preferred Marriott Ability Significant Dominant Network #1 38 11.2 Employs $19-$24 Source: I. Situation ranked million million MARRIOTT? to Marriott Rewards million hotels aoperator drive preferred operator large members team brand recurring Overview members command visitation group of gross Int
Slide 16: Illustrative Pro Forma FFO and AFFO
ILLUSTRATIVE ($ Low Consensus Less: Add: Pro (a) NOTE: PRESENTATION Source: I. Situation in Assumes forma High millions) Amortization Tax Cost Consensus Non-cash Consensus THE First Savings(a) AFFO net FFO savings net Overview REIT TABLE Call income 2013 income Ground $226 depreciation capital $196
Slide 17: II. Unique Portfolio and Focus
II. UNIQUE ENTERTAINMENT® GAYLORD PORTFOLIO AND FOCUS
Slide 18: Unique REIT Strategy
UNIQUE Gaylord II. Unique will REIT Portfolio be the STRATEGY only and Focus publicly Gaylord tradedEntertainment REIT that willCo. be focused 18 on group-oriented destination hotel assets located in urban and resort markets
Slide 19: Overview of Current Assets
aOVERVIEW Year Nashville, 1977 640,000 2,882 GAYLORD 25 17 Kissimmee, 2002 91,406 Dallas, 2004 400,000 41,511 7G 11 Washington, 2008 470,000 21,996 5R 10 303 (to Taxable Ryman Grand General Wildhorse Gaylord II. ADISSON Delaware AYLORD acres Unique be rooms Completed managed Ole TX Auditorium REIT J
Slide 20: Our Customer Mix and Visibility
UNIQUE -Our Customer Transient Group 50% 35% 15% Average Corporate Association Other Note: II. WeUnique assets Association Corporate Other anticipate Customer 2.7 78% Business Group 22% REVENUE Mix 1.5 Portfolio are 4.3custom that Booking mix Mixthe and isbuilt MIX based addition Focus Window to AND
Slide 21: Significant Non-Room Revenue
SIGNIFICANT -“All Revenue Room Outside 44% 25% 31% Note: II. Approximately Unique under Banquets Food Other Revenue 40% the Mix Portfolio & one Room room beverage FYroof” profile NON-ROOM 70% 2011 revenue 60% and offerings of numbers outlets Focus outside mix REVENUE capture FY Gaylord are the2011 b
Slide 22: Our Contracts Provide Profit Protection
CONTRACTS Our Gaylord vs. Fee 65% 66% 71% $27.7 72% 80% 78% $0.0 $15.0 $30.0 US$ Attrition 2011 2010 2009 2008 2007 50% $9.2 $9.3 $10.3 Occupancy $14.6 Source: Note: II. Unique Occupancy Collections contractual in2008 Millions Company Hotels and &Portfolio includes Cancellation cancellation PROVIDE
Slide 23: Unique Contractual Model Outperformed During the Recession
UNIQUE Contractual Additional Relative 100 95 90 85 80 2008 70 75 Upper Note: II. Unique 93.1 93.3 87.6 82.4 96.8 2009 Adjusted Upscale RevPAR 99.6 MODEL Portfolio 2010 upside nature Adjusted Gaylord 2011 Performance exists of OUTPERFORMED and advance Hotels Focus beyond Gaylord group Gaylord Base i
Slide 24: High Barriers to Entry Limit Future Competition
HIGH Facility Exhibit/Meeting Venetian Mandalay MGM Marriott Rosen Gaylord Source: II. Unique BARRIERS Shingle Grand Company Name Texan owns Opryland National Palms Orlando Resort Bay Portfolio Hotel four Location Creek Resort Resort &World Resort filings. Resort Casino of TO & and Orlando, the & Ca
Slide 25: Assets in Pristine Condition
ASSETS 1977 2007-08 2010 2002 2011-12 2012 2004 2011 Gaylord 2008 II. Unique Addition Initial Renovation Property Texan Opryland Palms National Renovation IN Portfolio phase PRISTINE completed of Paradise new of ofand public of property amenities rooms rooms, CONDITION Focus and Springs, space, open
Slide 26: Extensive Meeting Space and Elegant Banqueting Offerings
EXTENSIVE II. Unique Portfolio MEETINGand Focus SPACEGaylord AND Entertainment ELEGANT BANQUETING Co. 26 OFFERINGS
Slide 27: Entertaining Environments for Meeting and Networking
ENTERTAINING II. Unique PortfolioENVIRONMENTS and Focus GaylordFOR Entertainment MEETINGCo.AND 27 NETWORKING
Slide 28: Tastefully Decorated Rooms Provide Warmth and Comfort
TASTEFULLY II. Unique Portfolio DECORATED and Focus Gaylord ROOMSEntertainment PROVIDE WARMTH Co. 28 AND COMFORT
Slide 29: III. Lodging REIT Comparison
III. LODGING GAYLORD ENTERTAINMENT® REIT COMPARISON
Slide 30: Lodging REIT Comparison: Room Count
LODGING Gaylord Number As 65,864 HST Note: Source: III. of Lodging HPT Q1 Room 43,515 Company will of 2012 AHT Rooms REIT REIT count be26,195 RLJ inCOMPARISON filings, the Comparison includes FCH 20,646 middle Wall SHO pro 18,326 one-third Street Gaylord rata DRH- share ROOM 13,208 Research LHO of E
Slide 31: Lodging REIT Comparison: Average Daily Rate
LODGING The FY $248 BEE Source: III. 2011 Lodging ADR PEB $203 Company Average is LHO $193 REIT aREIT reflection HST $182 Daily COMPARISON filings, Comparison CHSP $175 Rate ofWall the $167 GET high Street Gaylord $167 SHO - quality AVERAGE Research $163 DRH Entertainment assets $153 HTand DAILY AHT
Slide 32: Lodging REIT Comparison: Total RevPAR
LODGING Gaylord FY $338 BEE Note: III. 2011 Lodging GET $305 Based has Total PEB $258 REIT among REIT onRevPAR LHO 2011 $225 COMPARISON Comparison the total HST $216 highest revenue CHSP $182 Total Gaylord $181 SHO -and TOTAL RevPAR $174 2011 DRH Entertainment REVPAR estimated $120 AHT compared $119
Slide 33: Lodging REIT Comparison: EBITDA per Available Room
LODGING Due FY $25,374 GET Note: III. 2011 Lodging to BEE Based Gaylord’s $24,820 EBITDA LHO REIT REIT on 2011 PEB $22,998 ability COMPARISON /Comparison Available estimated HTtoCHSP $22,845 capture Rooms available Gaylord SHO-$18,139 aEBITDA greater HST Entertainment rooms HPT $17,732 share / AVAIL
Slide 34: Lodging REIT Comparison: Current Trading Multiple
LODGING Despite 17.2x EBITDA PEB Note: III. IQ. Lodging BEE TEV 15.8x being HST calculated REIT 14.4x REIT among LHOCOMPARISON 13.9x Comparison HT the using 13.6x AHT leaders stock DRH 13.6x Gaylord inprices -performance CURRENT CHSP 13.3x Entertainment as of 13.1x FCHMay TRADING on SHO 13.1x 30, To
Slide 35: IV. Growth Opportunities
IV. GROWTH GAYLORD ENTERTAINMENT® OPPORTUNITIES
Slide 36: Group Segment Is Positioned for Recovery
GROUP -Lodging Occupancy Rate Group (Year-Over-Year 8.0% 2005 -Group Source: IV. Expected Growth growth 2006 3.0% ADR ADR Smith SEGMENT fundamentals 2007 to -2.0% Opportunities isvs. has is-Transient recover expected Travel expected Transient lagged 2008 Growth) -7.0% IS Research; at 2009 suffered t
Slide 37: Favorable Lodging Outlook
FAVORABLE Supply High Group Upper 10.0 -1990 Source: IV. Demand Growth 4.0 replacement 1991 Upscale bookings growth Smith -2.0 -1992 Opportunities Supply -8.0 Travel LODGING remains Supply remain 1993 costResearch 1994 and &at strong Demand Gaylord historically OUTLOOK long 1995 while lead 1996 Year
Slide 38: Significant Organic Growth Opportunities
SIGNIFICANT Marriott The Recent ~$25 Investment $13 Robust Texan Opryland Palms Dollywood Resort IV. Growth million pipeline million room pool capital Investments Pipeline synergies room at Opportunities joint at expansion ofGaylord Gaylord National investments potential expansion ORGANIC venture pr
Slide 39: Acquisition Strategy
ACQUISITION While Upper-Upscale Highly -Possess Existing The IV. Group-oriented Present Improve Growth following REIT we accessible or property aare geographic will are repositioning Opportunities focused located parameters seek assets STRATEGY large brand assets towith diversity on near purchase ho
Slide 40: Gaylord "Colorado" Project
GAYLORD -As IV. This However, Company aGrowth REIT, examination the will Opportunities “COLORADO” Company project notwill re-examine proceed has bewill Gaylord undertaken some how with PROJECT no very the longer Colorado Entertainment project attractive with view project investor could large and Co.
Slide 41: V. Capitalization
V. CAPITALIZATION GAYLORD ENTERTAINMENT®
Slide 42: Balance Sheet and Liquidity
BALANCE Company Debt $152.2 2014 Term As Corporate B3/B+ Senior Caa2/B $340 Revolver 1Source: V.Subject Capitalization ofMaturity 2015 million Loan March Unsecured $185.0 Company capacity to has Family (L+225) SHEET compliance 31, no Schedule $360.0 2012 Gaylord maturities Rating filings. Revolver A
Slide 43: Total Debt / 2012E EBITDA
DEBT Gaylord Total 10.4x AHT Note: V. Capitalization FCH Debt Based 8.5x / 2012E hasBEE /7.2x 2012 less on EBITDA debt 7.0x CLDT leverage Gaylord E EBITDA as 6.4x SHO of Entertainment than 5.7x Q1INN 2012 the 5.6xCHSP majority and 5.1x2012E Co. HT 5.1x ofRLJ 43 4.9x lodging EBITDA DRH 4.6xREITs PEB
Slide 44: Interest Coverage
INTEREST Gaylord Interest 6.6x PEB Note: V. Capitalization 6.0x GET Based Coverage will 5.3x LHO COVERAGE on have 4.5x LTM HPT Gaylord adequate 3.8x EBITDA CHSP 3.6x Entertainment interest DRH 3.6x andINN 3.5x LTM coverage HST 3.0x Co. net CLDT cash 2.9x 44 relative 2.8x interest RLJ to2.7x other SH
Slide 45: Gaylord Entertainment Summary
GAYLORD ENTERTAINMENT® SUMMARY
Slide 46: Investment Highlights
INVESTMENT Transaction Conservative Strong Upside High New Summary Co quality barriers organic asREIT Gaylord lodging with purpose-built balance toand entry HIGHLIGHTS world-class fundamentals Entertainment external sheet limiting assets and growth operator future efficient continue Co. strategy com
Slide 47: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION GAYLORD ENTERTAINMENT® OF NON-GAAP FINANCIAL METRICS
Slide 48: Reconciliation of Non-GAAP Financial Metrics
$RECONCILIATION Net (Income) Provision Other Income Interest Operating Depreciation EBITDA Full Gaylord Estimated Source: Note: Reconciliation in income thousands Year Full (gains) from expense, Company Entertainment $204,820 TTM loss (benefit) income operating depreciation EBITDA Year (loss) & unco
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