CONF CALL
- 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
