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Takeaway: Strong quarter and solid guidance. Story still intact.


  • 4Q REVPAR:  +10.3% - driven by 21k more corporate group nights vs last year
  • 4Q: Transient room nights up 7.9% YoY; transient ADR up $7.25 or 3.9% YoY
  • Bought National Harbor 192 room hotel in December:  Reflagged under AC brand.   Reopening expected by end of 1Q 2015
  • 2Q typically the best quarter
  • 4Q 2014:  booked 870k gross room nights for all future years +12.7% YoY. booked 775k net room nights +21.6% YoY.  December was best production month on record. Best bookings quarter since 2005 (2nd best ever)
  • Group segment very healthy
  • Aim for company properties to have a little over 80% occupancy
  • Opryland: room renovation will be unveiled in 2Q 2015
  • 2015 guidance:  have slightly more group nights booked than 2014. 
  • Group:  Prospects up 8% and tentatives up 10%.  Will have material impact on 2016-2017.  
  • 2016 Group book revenues up 5% YoY 
  • Raised menu pricing in 2014.  Banquets particularly did well.
  • Create value by settling convertible notes for cash and buy back stock
  • Q4: Modest increase in attrition/cancellations 
  • 2013 corporate EBITDA comp: positively impacted for $3.4m due to change in corporate deferred compensation plan.
  • Plan to complete repurchase of warrants by 1Q 2015 
  • AFFO: no longer deducting capex
  • New dividend policy: “The Company plans to pay a quarterly cash dividend to shareholders in an annualized amount equal to at least 50% of Adjusted Funds from Operations (Adjusted FFO) less maintenance capital expenditures, or 100% of REIT taxable income, whichever is greater.”
  • EBITDA guidance for AC hotel: $2-3m
  • 2Q 2015 and 4Q 2015:  strongest revenue and EBITDA growth quarters
  • 1Q 2015 impacted by norovirus outbreak at Opryland and weather effects
  • 1Q 2015 total REVPAR guidance: flat

Q & A

  • Limit group nights to have higher transient business? Want to leave open weekends/holidays opportunities for transient business.
  • Gaylord National:  market will continue to grow. 
  • Nashville:  bought a building 9 months ago in a great location. Looking to build a high-quality entertainment venue.
  • Gaylord Texan:  66k more group room nights on the books than this time last year.  Will have an excellent 2015. 
  • DC:  property will continue momentum.  Well-positioned.  
  • Orlando:  humming along. Expect slight growth YoY 
  • Will look potential asset purchases - want the right multiple