Ryman Hospitality Properties, Inc. Provides Update on Impact of Coronavirus; Withdraws Full-Year 2020 Business Outlook

NASHVILLE, Tenn. , March 08, 2020 (GLOBE NEWSWIRE) -- Ryman Hospitality Properties, Inc. (NYSE: RHP) (the a??Companya??) today provided the following update on the impact of the COVID-19 virus:
Colin Reed, Chairman and Chief Executive Officer of the Company, said, a??We have been closely monitoring the impact of COVID-19. We, along with our hotel manager, Marriott, remain in close contact with local and national health authorities and have elevated the cleaning and sanitation procedures at our properties.a??During the investor conferences the Company attended early last week, we indicated that our hospitality business had incurred approximately 14,000 cancelled net room nights which we believed were attributable to COVID-19.A  During the course of the last week, our hospitality business has witnessed an increase in group room night attrition and cancellations which we believe also are attributable to COVID-19. For the week ended March 7, 2020, our hospitality business experienced total attrition and cancellations of approximately 77,000 net room nights (which is inclusive of the 14,000 net room nights described above), representing approximately $40 million of revenue. Approximately 75% of this impact is for March 2020 and approximately 25% is for April 2020.A A a??Our group-centric business model, in which approximately 70% of total room nights occupied in any given year is in the form of contracted group business, provides a measure of profitability protection in the face of increased levels of attrition and cancellation.A  In this regard, the estimated amount of attrition and cancellation fees owed to the Company for the attrited/cancelled groups is approximately $19 million. Several groups who have cancelled their event have expressed a desire to rebook their event later this year at one of our hotel properties. A In addition, we are working with Marriott to implement cost containment strategies at each of our properties to reduce operating expenses in light of the short-term revenue losses we are experiencing.a??To put these attrition and cancellation figures in context, the typical volume of attrition and cancellations in the first quarter of a given year (based on a three-year average and excluding the Gaylord Rockies) is approximately 18,000 net room nights. In addition, the volume of attrition and cancellations in the first quarter of 2009 during the height of the global financial crisis, the highest quarterly level in our history, was approximately 122,000 net room nights, and for full year 2009 the total volume of attrition and cancellation was approximately 250,000 net room nights.
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