After falling short to the bookings in 2020, Ryman’s bounces back with rebooking incline in Q4.
Ryman Hospitality Properties (RHP) is a hotel, resort, entertainment, and media company. RHP stock has soared significantly since November 2020. Post pandemic RHP stock was doing great and the company was making a good amount of profit. The pandemic has hit hard on Ryman’s operations with lockdowns and other restrictions.
However, in the recent quarterly outlook, the company has reported promising results—with an increase in rebooking.
Earlier in Jan. 2021, the company scheduled to release its fourth-quarter earnings results on Feb. 26. Additionally, Ryman has presented an initial outlook of the Q4 outcomes.
The pandemic has massively affected the hospitality industry. Ryman reported that a cumulative 2.4 million group room nights were canceled between March 2020 and Jan. 21, 2021.
In the Q4 outlook, the company has highlighted that its rebooking activity continues to grow. Around 58% of the canceled bookings have been rebooked for future periods, exceeding the firm’s target of 50%. Whereas, there the cancellations in Q3 and Q4 were quite modest.
Ryman’s hospitability portfolio was profitable with almost 19.6% occupancy during the fourth quarter. Moreover, the company ran successful programs during the holiday periods which attracter customers and around 1 million event tickets were sold in Q4.
As of year-end 2020, the group occupancy for the second half of this year is at reasonable levels—not much below from the prior year. The Gaylord Texan hosted a survey asking meeting attendees from Meeting Planners International (MPI) for their opinion regarding the COVID-19 outlook. More than 75% of respondents replied that if the vaccine is deployed at a broader level during the first quarter of 2021 then the company could be in a position to resume in-person meetings before Q4 2021.
The company posted Survey’s stats in the Q4 outlook, which shows that Ryman management is quite optimistic that they would resume full business activities by the end of this year.
However, the Q4 guidance is subject to risks and uncertainties that could change the actual outcomes of the quarter.
Ryman Hospitality Properties (RHP) has shown positive outcomes, still, there is much risk as the vaccine isn’t available to the masses. But, with risk, there is massive upside potential for RHP stock. The investors should keenly examine the upcoming outcomes and what the company plans for this year. For now, Ryman stock is a hold.