Ryman (RHP) Completed its $1.38B Grande Lakes Orlando Acquisition. Can Initial Adjusted EBITDAre Support the Financing Burden?

Ryman Hospitality Properties, Inc. (NYSE:RHP) completed its approximately $1.38 billion acquisition of Grande Lakes Orlando, adding a group and leisure resort complex to its portfolio. The property spans more than 400 acres and includes the 1,010-room JW Marriott Orlando, Grande Lakes, the 582-room Ritz-Carlton Orlando, Grande Lakes and approximately 320,000 square feet of meeting and event space.

The purchase was funded with net proceeds from an offering of 5.865 million common shares, a $700 million private placement of 6.250% senior notes due 2035, and cash on hand. Ryman Hospitality Properties, Inc. expects Grande Lakes Orlando to contribute $30 million to $35 million of company-defined non-GAAP Adjusted EBITDAre during the final four months of 2026. The measure begins with GAAP net income and adjusts for interest, taxes, depreciation and amortization, real estate gains or losses, impairments, and specified items such as acquisition costs and non-cash lease expense.

BULL CASE

Grande Lakes Orlando fits the REIT’s focus on large, group-oriented resorts. Group customers accounted for 61% of the property’s room nights in 2025, while leisure travelers contributed 39%. Meeting space, 14 food and beverage outlets, a spa, a waterpark, and a golf course provide revenue sources beyond guestrooms.

The acquisition adds 1,592 rooms, roughly 13% of the pre-acquisition portfolio. It strengthens the rotation network among Gaylord and JW Marriott properties and introduces Ritz-Carlton to the portfolio.

The initial earnings forecast appears more meaningful when placed against the ownership period. Using seller-provided financial information, Grande Lakes Orlando generated $110.0 million of trailing 12-month Adjusted EBITDAre through June 2026, producing the stated 12.5 times purchase multiple.

The property received approximately $150 million of recent capital investment covering guestrooms, meeting space, and core public areas, potentially limiting near-term renovation needs.

BEAR CASE

The transaction immediately increases both debt and the share count. The new senior notes carry approximately $43.8 million of annual coupon interest based on their principal amount and stated rate. Meanwhile, the equity offering spreads the property’s earnings across 5.865 million additional shares.

The updated outlook illustrates the near-term burden. At the midpoint, Grande Lakes Orlando adds $32.5 million of 2026 Adjusted EBITDAre and $12.5 million of operating income, but consolidated net income guidance decreased by approximately $3.3 million. Financing costs, depreciation, and transaction effects can absorb the initial operating contribution before it reaches common shareholders.

Adjusted EBITDAre is not a cash-flow measure because it excludes interest and depreciation and does not deduct capital spending. Trailing 12-month company-defined non-GAAP net operating income, calculated as Adjusted EBITDAre less an $18.8 million furniture, fixtures and equipment reserve, was $91.2 million, below $110.0 million of Adjusted EBITDAre.

Large resorts remain exposed to group-booking cycles, corporate travel budgets, leisure demand and severe weather. Ryman Hospitality Properties, Inc. must integrate two hotel brands, extensive amenities and a large convention calendar without losing expected portfolio synergies.

Hedge Fund Sentiment

The filings available so far reflect positions held before Ryman Hospitality Properties, Inc. reported the completion of the Grande Lakes Orlando acquisition. Insider Monkey’s database showed 22 hedge funds holding Ryman Hospitality Properties, Inc. at the end of 2Q2026, down from 33 funds three months earlier.

CONCLUSION

The $30 million to $35 million contribution does not represent a full-year earnings test. The better starting point is the property’s $110.0 million trailing Adjusted EBITDAre, balanced against the 12.5 times acquisition multiple, capital requirements, and $43.8 million annual note coupon.

Grande Lakes Orlando strengthens the platform of Ryman Hospitality Properties, Inc., but acceptable returns require more than scale. Group bookings, net operating income after capital reserves, per-share earnings, and debt reduction will determine whether the acquisition supports its financing burden.

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This article is originally published at Insider Monkey.