Ryman Hospitality Properties, Inc. (RHP): One of the Best Hotel Stocks to Buy According to Analysts

Ryman Hospitality Properties, Inc. (RHP) has emerged as a top pick among analysts in the hotel sector, with its strong financial performance, growth prospects, and attractive valuation. The company, which specializes in group-oriented, destination hotel assets, has demonstrated consistent long-term earnings growth and a track record of dividend increases. In this article, we will explore the key factors that make RHP an attractive investment opportunity according to analysts.

Strong Financial Performance

RHP has shown consistent long-term earnings growth, with a 10-year compound annual growth rate (CAGR) of 230.68%. In the third quarter of 2024, the company reported a 48.1% increase in net income year-over-year, reflecting strong operational performance. RHP's revenue has grown at a CAGR of 8.89% over the past five years, outpacing the US REIT - Hotel & Motel industry average of 1.61%. The company's profit margin of 14.77% and EBITDA margin of 31.44% indicate effective cost management and efficient operations.

Growth in Hospitality Segment

RHP's Hospitality segment, which includes the Gaylord Hotels properties, was a significant contributor to the company's growth. Hospitality revenue increased by 4.7% to $467.0 million, with an operating income margin improvement to 22.0% from 20.6% in the previous year. The segment's growth was driven by strong demand for group business and leisure travel, as well as increased pricing power.

Record Revenue and Earnings

RHP achieved record third quarter consolidated revenue, net income, operating income, and Adjusted EBITDAre, driven by record third quarter same-store ADR and Total RevPAR. The company's strong performance was supported by robust demand for its upscale convention center resorts and country music entertainment experiences.



Dividend Increase

RHP declared a fourth-quarter cash dividend of $1.15 per share, reflecting confidence in its financial health and future cash flows. The company has a strong track record of dividend growth, with a 15.58% increase in the past year and a 2-year dividend growth streak. RHP's dividend yield of 4.49% is attractive to income-oriented investors.

Strong Balance Sheet and Liquidity

As of September 30, 2024, RHP had unrestricted cash of $534.9 million and total debt of $3,373.4 million, maintaining a strong liquidity position with $759.7 million of aggregate borrowing availability under its revolving credit facilities. The company's strong financial position enables it to pursue growth opportunities and weather economic downturns.

Analyst Ratings and Price Targets

According to 6 analysts, the average rating for RHP stock is "Buy," with a 12-month stock price forecast of $127.5, which is a 24.52% increase from the latest price. The consensus rating is "Buy," indicating that analysts are bullish on the company's prospects.



In conclusion, Ryman Hospitality Properties, Inc. (RHP) is an attractive investment opportunity according to analysts, with its strong financial performance, growth prospects, and attractive valuation. The company's focus on group-oriented, destination hotel assets, dividend growth, and strong balance sheet position make it a compelling choice for investors seeking exposure to the hotel sector. As the company continues to execute on its growth strategy, it is well-positioned to capitalize on the recovery in the travel and hospitality industry.