Ryman Hospitality Properties, Inc. (RHP): Business Model Canvas [11-2024 Updated]

Discover how Ryman Hospitality Properties, Inc. (RHP) leverages its unique business model to create exceptional experiences in the hospitality and entertainment sectors. Through strategic partnerships, a diverse range of customer segments, and a robust value proposition, RHP stands out in a competitive market. Dive into the details of their Business Model Canvas to understand the key elements that drive their success and innovation.

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Key Partnerships

Partnerships with Marriott for hotel management

Ryman Hospitality Properties maintains a significant partnership with Marriott International for the management of its hotel properties. This collaboration involves a base management fee structure where RHP pays Marriott approximately 2% to 3.5% of gross revenues, depending on the specific property. For instance, the Gaylord Rockies pays about 3%, while JW Marriott Hill Country pays 3.5%.

In the three months ended September 30, 2024, RHP incurred $11.0 million in base management fees and $6.7 million in incentive management fees, reflecting a year-over-year increase from $10.5 million and $6.2 million respectively. For the nine months ended September 30, 2024, these figures rose to $34.0 million and $24.6 million from $28.9 million and $20.0 million in the same period of 2023.

Collaborations with entertainment brands like NBCUniversal

RHP collaborates with notable entertainment brands, including NBCUniversal, to enhance guest experiences at its properties. This partnership often involves exclusive events and promotions, significantly impacting the entertainment revenue segment. For the nine months ended September 30, 2024, RHP reported entertainment revenues of $243.99 million, compared to $236.75 million in the same period of 2023.

Strategic alliances with artists for venue concepts

Strategic alliances with artists play a crucial role in developing unique venue concepts that attract visitors. RHP's venues, such as the Grand Ole Opry and Ryman Auditorium, frequently host performances from well-known artists. This strategy not only enhances the customer experience but also drives ticket sales and merchandise revenue. The operating income from the entertainment segment for the three months ended September 30, 2024, was $13.92 million, compared to $20.69 million in the same period of 2023.

Licensing agreements for product extensions

RHP engages in licensing agreements that allow for product extensions related to its brand and hospitality services. These agreements facilitate the development of merchandise and services that resonate with RHP's audience, contributing to additional revenue streams. The total revenue from the hospitality segment for the nine months ended September 30, 2024, was approximately $1.447 billion, up from $1.288 billion in the prior year.

Partnership Type	Details	Financial Impact (2024)
Marriott Management	Base fees of 2%-3.5% of gross revenues	Base Fees: $34.0M; Incentive Fees: $24.6M
NBCUniversal Collaboration	Exclusive events and promotions	Entertainment Revenue: $243.99M
Artist Alliances	Unique venue concepts at key locations	Entertainment Operating Income: $13.92M
Licensing Agreements	Product extensions related to brand	Hospitality Revenue: $1.447B

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Key Activities

Management of hospitality and entertainment properties

Ryman Hospitality Properties (RHP) operates a range of hospitality and entertainment properties, primarily through its Gaylord Hotels brand. As of September 30, 2024, RHP's total assets amounted to $5.20 billion, with property and equipment valued at approximately $4.09 billion. The company's Hospitality segment generated revenues of $1.45 billion for the nine months ended September 30, 2024, reflecting a 12.4% increase compared to the same period in 2023.

Hosting events and conventions at Gaylord Hotels

RHP's Gaylord Hotels are designed to host large-scale events and conventions, contributing significantly to revenue. For the nine months ended September 30, 2024, the Hospitality segment reported an operating income of $356.9 million, up from $305.5 million in the prior year. The hotels recorded an average daily rate (ADR) of $254.72 and a revenue per available room (RevPAR) of $178.19 during the same period. RHP has also noted a same-store increase of 5.0% in outside-the-room spending, indicating strong demand for event-related services.

Continuous capital investment in property enhancements

RHP is committed to ongoing capital investments to enhance its properties. In the nine months ended September 30, 2024, the company incurred capital expenditures totaling $317.3 million. Notable projects included enhancements at Gaylord Rockies and renovations at various properties, including Gaylord Palms and the W Austin. The anticipated capital expenditures for the remainder of 2024 are estimated to be between $80 million and $130 million.

Marketing and promotion of entertainment brands

RHP actively promotes its entertainment brands, including the Grand Ole Opry, the Ryman Auditorium, and Ole Red. The Entertainment segment generated revenues of $243.99 million for the nine months ended September 30, 2024, a 3.1% increase from the previous year. Operating income for this segment was $48.3 million, down from $55.9 million in the prior year, primarily due to increased operating expenses. The opening of Ole Red Las Vegas in January 2024 contributed positively to this segment's revenue.

Key Activity	Financial Impact	Notes
Hospitality Segment Revenue	$1.45 billion (2024)	12.4% increase YoY
Operating Income (Hospitality)	$356.9 million (2024)	Up from $305.5 million (2023)
Capital Expenditures	$317.3 million (2024)	Enhancements across multiple properties
Entertainment Segment Revenue	$243.99 million (2024)	3.1% increase YoY
Operating Income (Entertainment)	$48.3 million (2024)	Down from $55.9 million (2023)

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Key Resources

Five major Gaylord Hotels properties across the U.S.

Ryman Hospitality Properties operates five major Gaylord Hotels locations, which include:

• Gaylord Opryland Resort & Convention Center, Nashville, TN
• Gaylord Palms Resort & Convention Center, Kissimmee, FL
• Gaylord Rockies Resort & Convention Center, Aurora, CO
• Gaylord National Resort & Convention Center, National Harbor, MD
• Gaylord Texan Resort & Convention Center, Grapevine, TX

These properties are significant revenue generators for the company, contributing to a total hospitality revenue of approximately $1.45 billion for the nine months ended September 30, 2024.

Strong brand recognition of the Grand Ole Opry

The Grand Ole Opry, a cornerstone of Ryman's entertainment segment, holds substantial brand recognition and cultural significance. It attracts over 300,000 visitors annually and contributes to the overall revenue, with the entertainment segment revenues totaling approximately $244 million for the nine months ended September 30, 2024.

Experienced management team and operational staff

Ryman Hospitality Properties boasts a seasoned management team with extensive experience in the hospitality and entertainment industries. This team effectively drives operational efficiency and strategic growth initiatives, which have resulted in a 12.4% increase in hospitality revenue year-over-year.

Real estate assets valued at over $1.4 billion

The company’s real estate assets, which include its hotel properties and related facilities, are valued at over $4.09 billion as of September 30, 2024. The breakdown of property and equipment is as follows:

Asset Type	Value (in thousands)
Land and land improvements	$608,703
Buildings	$4,505,403
Furniture, fixtures, and equipment	$1,262,410
Right-of-use finance lease assets	$1,097
Construction-in-progress	$188,486
Total Property and Equipment	$6,566,099

This valuation underscores the significant physical assets that Ryman Hospitality Properties utilizes to deliver value to its customers.

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Value Propositions

Unique destination resorts with extensive amenities

Ryman Hospitality Properties, Inc. operates several unique destination resorts, most notably the Gaylord Hotels chain. These resorts offer extensive amenities, including luxurious accommodations, conference facilities, and recreational activities. For example, the Gaylord Opryland Resort features over 2,800 rooms, a 4.5-acre indoor garden, and a full-service spa. In the nine months ended September 30, 2024, the Hospitality segment generated revenues of approximately $1.45 billion, reflecting a year-on-year growth of 12.4%.

High-quality entertainment experiences in iconic venues

RHP is also renowned for its high-quality entertainment experiences, particularly through venues like the Grand Ole Opry and the Ryman Auditorium. In the nine months ended September 30, 2024, the Entertainment segment generated revenues of $243.99 million, a 3.1% increase from the previous year. The Grand Ole Opry alone hosts over 100 shows annually, attracting a diverse audience and contributing significantly to RHP's brand value.

Tailored services for group events and conventions

The company specializes in tailored services for group events and conventions, catering to both corporate and social gatherings. In the nine months ended September 30, 2024, RHP reported net revenues from group room bookings of $401.28 million, representing a notable increase of 12.5% compared to the same period in 2023. The company’s ability to provide comprehensive event services, including catering and audiovisual support, enhances its value proposition.

Strong brand loyalty and recognition in hospitality and entertainment

Ryman Hospitality Properties has built strong brand loyalty and recognition in both the hospitality and entertainment sectors. The company’s focus on customer experience and quality service has resulted in a high rate of repeat business. In 2024, the average daily rate (ADR) for RHP hotels increased by 6.2%, indicating strong pricing power amid rising demand. Additionally, the company has a robust rewards program that encourages guest loyalty, further solidifying its market position.

Financial Metrics	2023 (9 months)	2024 (9 months)	Change (%)
Total Hospitality Segment Revenue	$1.29 Billion	$1.45 Billion	12.4%
Total Entertainment Segment Revenue	$236.75 Million	$243.99 Million	3.1%
Group Room Bookings Revenue	$356.47 Million	$401.28 Million	12.5%
Average Daily Rate (ADR)	$230.50	$244.71	6.2%
Occupancy Rate	71.8%	69.1%	(2.7)pts

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Customer Relationships

Focus on long-term relationships with event planners

Ryman Hospitality Properties (RHP) emphasizes building strong, long-term relationships with event planners, which is critical for securing group bookings. As of September 30, 2024, RHP reported a total hospitality revenue of $467.0 million for the three months ended, reflecting a 4.7% increase year-over-year. The net definite group room nights booked decreased by 16.7% to 477,121 compared to the previous year, though bookings for future years increased by 4.2%.

Loyalty programs for frequent guests

RHP has developed loyalty programs aimed at frequent guests, which incentivizes repeat visits. The company reported an increase in same-store average daily rate (ADR) of 6.2% in 2024, indicating successful customer retention strategies. Loyalty program members often receive exclusive benefits, enhancing their overall experience and encouraging longer stays at properties like Gaylord Opryland and Gaylord Rockies.

Customer feedback integration for service improvement

RHP actively integrates customer feedback into its service improvement strategies. The company reported a same-store increase of 5.6% in outside-the-room spending at hotels, attributed to enhanced services driven by guest feedback. This engagement is crucial for refining offerings and ensuring high levels of customer satisfaction, which is reflected in their operating income of $102.8 million for the three months ended September 30, 2024.

Engagement through social media and promotional events

RHP leverages social media platforms and promotional events to engage with customers. The company’s entertainment segment generated $82.9 million in revenue during the same period, showcasing effective marketing and promotional strategies. RHP’s focus on events at venues such as the Grand Ole Opry and Ole Red enhances visibility and customer interaction, fostering a community around their brand.

Metric	Q3 2024	Q3 2023	Change (%)
Total Hospitality Revenue	$467.0 million	$446.2 million	4.7%
Net Definite Group Room Nights Booked	477,121	572,574	(16.7%)
Same-store ADR	$244.71	$230.50	6.2%
Same-store Outside-the-room Spending Increase	5.6%	N/A	N/A
Entertainment Segment Revenue	$82.9 million	$82.3 million	0.7%

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Channels

Direct bookings through the company website

Ryman Hospitality Properties has emphasized direct bookings through its company website, which provides customers with the best rates and exclusive offers. In 2024, the company reported an increase in direct bookings contributing significantly to its revenue, with total hospitality revenue reaching $1,447.6 million for the nine months ended September 30, 2024, compared to $1,288.3 million during the same period in 2023, reflecting a 12.4% increase.

Third-party travel and event planning agencies

RHP collaborates with various third-party travel agencies and event planning companies to enhance its market reach. This channel allows RHP to attract a broader customer base, particularly for group bookings. In the nine months ended September 30, 2024, group room revenues amounted to $401.3 million, up from $356.5 million in 2023, showcasing a 12.5% growth in this segment.

Social media and digital marketing platforms

The company utilizes social media and digital marketing extensively to promote its offerings. Ryman's digital marketing efforts have led to increased engagement and visibility, resulting in a rise in direct bookings. As of September 30, 2024, total entertainment revenues, including ticket sales and food and beverage from events, were reported at $243.9 million, up from $236.8 million in the same period of 2023, indicating a 3.1% increase driven by effective marketing strategies.

Partnerships with corporate clients for group bookings

RHP has established strategic partnerships with corporate clients to secure group bookings. This approach has proven beneficial, with net definite group room nights booked decreasing by only 16.3% in 2024 compared to a larger decrease in transient room nights. This reflects the resilience of corporate partnerships during periods of market fluctuation.

Channel	2024 Revenue Contribution	2023 Revenue Contribution	Percentage Growth
Direct Bookings	$1,447.6 million	$1,288.3 million	12.4%
Third-party Agencies	$401.3 million	$356.5 million	12.5%
Social Media & Digital Marketing	$243.9 million	$236.8 million	3.1%
Corporate Partnerships	Data not specified	Data not specified	16.3% decrease in group room nights booked

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Customer Segments

Group travelers and corporate clients

The primary customer segment for Ryman Hospitality Properties includes group travelers and corporate clients. In 2024, group room nights on the books are reported to be 4.2% higher compared to the same point in 2023. The average daily rate (ADR) for these group room nights is estimated to be 6.0% higher than the previous year, indicating a strong demand in this segment.

Metrics	2024	2023	Change (%)
Group Room Nights	Higher by 4.2%	—	—
Estimated ADR	Higher by 6.0%	—	—

Families and leisure travelers visiting attractions

Families and leisure travelers constitute another significant segment for Ryman Hospitality Properties. The company reported an increase in outside-the-room spending at hotels by 5.0% in 2024 compared to 2023, primarily driven by families visiting attractions and engaging in leisure activities. This increase reflects the appeal of RHP's properties as family-friendly destinations.

Metrics	2024	2023	Change (%)
Outside-the-Room Spending Increase	5.0%	—	—

Music and entertainment enthusiasts

The music and entertainment segment is critical for Ryman Hospitality, especially with venues like the Grand Ole Opry and Ryman Auditorium. In 2024, Ryman's entertainment revenues reached approximately $82.9 million, reflecting a 0.7% increase from the previous year. This growth is supported by new attractions such as Ole Red Las Vegas, which opened in January 2024, contributing significantly to revenue.

Metrics	2024 (Q3)	2023 (Q3)	Change (%)
Entertainment Revenues	$82.9 million	$82.3 million	0.7%

Event planners and organizers

Event planners and organizers represent another key customer segment for Ryman Hospitality Properties. The company has reported significant investments in enhancing meeting spaces across its properties to cater to this segment. For instance, capital expenditures for improvements at Gaylord Opryland are aimed at appealing to group customers. The ongoing renovations and enhancements are expected to further boost revenues from this segment.

Metrics	2024 (Projected)	2023	Change (%)
Investment in Meeting Spaces	$80 million to $130 million	—	—
Projected Revenue Increase	—	—	—

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Cost Structure

Operating expenses related to hotel management

For the three months ended September 30, 2024, the total operating expenses for the hospitality segment were $444,078,000, which represents a 4.1% increase from $426,588,000 in the same period of 2023. The breakdown of specific operating costs is as follows:

Expense Category	Q3 2024 ($000)	Q3 2023 ($000)	Change (%)
Rooms	45,129	45,879	(1.6)
Food and Beverage	127,040	117,435	8.2
Other Hotel Expenses	123,716	122,748	0.8
Management Fees, Net	16,889	15,947	5.9
Depreciation and Amortization	51,488	52,466	(1.9)
Total Hospitality Operating Expenses	364,262	354,475	2.8

Costs associated with maintaining entertainment venues

The operating expenses for the entertainment segment for the three months ended September 30, 2024, were $61,659,000, up from $56,222,000 in 2023, marking a 9.7% increase. These costs include:

Expense Category	Q3 2024 ($000)	Q3 2023 ($000)	Change (%)
Operating Expenses	(61,659)	(56,222)	9.7
Depreciation and Amortization	(7,336)	(5,400)	35.9
Total Entertainment Operating Expenses	(68,995)	(61,622)	11.2

Marketing and promotional expenses

Marketing and promotional expenses for Ryman Hospitality Properties are integrated within the total operating expenses. For the nine months ended September 30, 2024, total operating expenses were $1,321,261,000, which is a 10.5% increase compared to $1,195,260,000 in 2023. Specific marketing costs are not detailed separately but are part of the overall operational infrastructure.

Capital expenditures for property renovations

Ryman Hospitality Properties allocated significant capital expenditures for property renovations and improvements. During the nine months ended September 30, 2024, capital expenditures totaled $317,300,000. Renovation projects included:

• Enhancements at Gaylord Rockies to construct a new events pavilion and reposition food and beverage outlets.
• Rooms renovation at the W Austin and Gaylord Palms.
• Ongoing maintenance capital for each of the existing facilities.

These capital expenditures are crucial for maintaining the competitive edge and operational efficiency of Ryman's hospitality and entertainment segments.

Ryman Hospitality Properties, Inc. (RHP) - Business Model: Revenue Streams

Room bookings and hospitality services

For the three months ended September 30, 2024, Ryman Hospitality Properties reported room revenue of $28,092 thousand, a decrease of 1.4% from the previous year. For the nine-month period, room revenue was $89,680 thousand, up by 1.4% compared to the same period in 2023.

Food and beverage sales at hotels and venues

Food and beverage revenue for the three months ended September 30, 2024, was $35,550 thousand, slightly up by 0.3%. For the nine months, this segment generated $117,942 thousand, marking an increase of 6.8% year-over-year.

Ticket sales from entertainment events

Ryman Hospitality's entertainment segment generated $82,915 thousand in revenue for the three months ending September 30, 2024, a modest increase of 0.7% from the previous year. The nine-month total for this segment was $243,993 thousand, reflecting a growth of 3.1%.

Licensing and merchandising from brand partnerships

Ryman Hospitality Properties also engages in licensing and merchandising, although specific revenue figures from this stream were not detailed in the available financial reports. However, the overall hospitality revenue for the three months ended September 30, 2024, totaled $467,043 thousand, which is a 4.7% increase compared to the same period in 2023.

Revenue Stream	Q3 2024 Revenue (thousands)	Q3 2023 Revenue (thousands)	Change (%)	YTD 2024 Revenue (thousands)	YTD 2023 Revenue (thousands)	Change (%)
Room Bookings	$28,092	$28,486	-1.4%	$89,680	$88,481	1.4%
Food & Beverage Sales	$35,550	$35,430	0.3%	$117,942	$110,390	6.8%
Entertainment Ticket Sales	$82,915	$82,313	0.7%	$243,993	$236,751	3.1%
Licensing & Merchandising	N/A	N/A	N/A	N/A	N/A	N/A

Updated on 16 Nov 2024

Resources:

1. Ryman Hospitality Properties, Inc. (RHP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Ryman Hospitality Properties, Inc. (RHP)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Ryman Hospitality Properties, Inc. (RHP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.