Welcome to the Ryman Hospitality Properties' First Quarter 2015 Earnings Conference Call. Hosting the call today from Ryman Hospitality Properties are Mr. Colin Reed, Chairman and Chief Executive Officer; Mr. Mark Fioravanti, President and Chief Financial Officer; Mr. Patrick Chaffin, Senior Vice President of Asset Management; and Mr. Scott Lynn, Senior Vice President and General Counsel. This call will be available for digital replay. The number is 800-585-8367, and the conference ID number is 21628762. At this time all participants have been placed on listen-only mode. It is now my pleasure to turn the floor over to Mr. Scott Lynn. Sir, you may begin.

Good morning. Thank you for joining us today. This call may contain forward-looking statements as defined in the Private Securities Litigation Reform Act, including statements about the company's expected future financial performance. Any statements we make today that are not statements of historical fact may be deemed to be forward-looking statements. Words such as believes, expects, or similar ones are intended to identify these statements, which may be affected by many factors, including those listed in SEC filings and in today's release. The company's actual results may differ materially from the results we discussed or project. We will not update any forward-looking statements, whether as a result of new information, future events or any other reason. We will also discuss non-GAAP financial measures today, which we reconcile to the most comparable GAAP financial measure in an exhibit to today's release. I will now turn the call over to Colin.

Thank you, Scott and thanks to everyone for joining us on the call today. This was a very solid quarter for our company and a great start to the year. I will start by going through our results before discussing the trends we’re observing in the group sector, how we are thinking about the rest of the year, and the encouraging signs we are seeing for 2016 and beyond. I will then turn it over to Mark to provide more color on the financial performance for the quarter as well as the capital market activities we undertook subsequent to the end of the quarter. Now taking a step back for a moment it’s important to remember that during our previous quarterly call in February we stated that we expected our business to be flat in the first quarter compared to the prior year due to some unusual challenges we knew would negatively impact our results. Namely, the atypical winter weather that we had in Nashville and Dallas as well as the norovirus issue we dealt with at Gaylord Opryland hotel. However, when all was said and done our performance this quarter exceeded our expectations and it’s a testament to the state of our hotel business that we are able to deliver growth in a number of areas despite the one off headwinds. Notably we delivered a 4% growth in RevPAR and total RevPAR was up nearly 2%. While occupancy was flat year-over-year, the increase in RevPAR was largely driven by 3.2% growth rate this quarter. While corporate group room nights were down this quarter as compared to the same quarter last year, we saw solid growth in both association group room nights which were up almost 8% and rate for this segment was up over 2%. In addition our transient…

Thanks Colin, good morning everyone. In the first quarter, the company generated total revenue of $253.1 million, up 2.7% from the prior year quarter. During the quarter, the company generated net income available to common shareholders $4.5 million or $0.09 per fully diluted share. Net income this quarter was impacted by $20.2 million non-cash charge related to the change in fair value of the warrants the company repurchased during the first quarter. The company continued to grow profitability in the quarter generating $73.8 million in adjusted EBITDA, improving the EBITDA margin by 220 basis points. For the quarter, the company generated $58.9 million in AFFO or $1.14 per fully diluted share. As a reminder beginning in 2015 we no longer deduct capital expenditures in our definition of AFFO. We made this modification to ensure our company’s results were not negatively impacted when screened against our hospitality REIT peers. Turning to the hospitality segment, as Colin mentioned in his opening remarks, this quarter exceeded our internal expectations given the unusual challenges we faced early on in the quarter with atypical weather and norovirus issues at Gaylord Opryland. The hotels finished the quarter with RevPAR growth of 4% and total RevPAR growth of 1.8%. In our earning release for comparability purposes, we provided pro forma adjustments for 2014 results to show the impact the USALI accounting changes would have had on our results for that period. On a pro forma basis, hospitality total RevPAR in the first quarter would have grown 2.4% over the same period last year. During the first quarter we saw a modest increase in attrition rates primarily due to the norovirus issues at Opryland. For the quarter attrition increased 110 basis points to 11.3%. Setting aside the impact of the norovirus we estimate that attrition for the quarter…

Mark I don’t. I think we’ll -- Lori we will open up for questions. We’ll get on with the questions side.

[Operator Instructions]. Your first question comes from the line of Jeff Donnelley of Wells Fargo.

Good morning guys. Well, I think since you called me out I can ask my question. But I am curious Colin, because at year end you guys were on the call talking about your profit that has been up 8% and your tentative booking demand maybe up 10%. I think that’s why I am a little surprised to see your gross bookings down 8% in this quarter and on the 37% down comp to prior year. I’ve covered you guys long enough to know this is not necessarily a quarter to quarter business but it seems like you were set up for an easy comp on your gross booking results in the quarter, so that’s why it seems out of sorts to me frankly and maybe it is timing as you say?

It is exactly what it is. The point I wanted to make to you last year, I wanted to make to you in your report this morning you talked about us down last year 37% to 2013 but last year we booked overall 2.3 million room nights which was the best year we ever had since 2007. And booking over 800,000, less 900,000 room nights in the fourth quarter. When you book as many room nights in the fourth quarter that we book, it sucks the funnel out and these sales people spend a month recovering from the tremendous job they did in the fourth quarter. And that’s just the way our business functions.

No, no I recognize that. It is just in the prior -- in the fourth quarter you said that the funnels set you up good for 2015, so I agree with you, it is the full year result?

Our funnel was strong at the end of the fourth quarter. Its strong at the end of the first quarter. It’s just timing of the way these things get booked. We are expecting to book approximately there or there about the same amount of room nights this year that we booked last year which was a tremendous year for our company. The thing that’s encouraging is the rate side of it that we started to see improving third quarter last year, is continuing to move in the direction we all want. And that’s really good. Getting a 6% growth in the rate, group rate that we booked in the first -- in the first quarter is very, very healthy. And the other thing that’s very good is we are seeing a lot of business short-term and that’s why 2016 now is where it is. 2016 is we’ve got high single-digit more revenue on the books for 2016 today than we did at this time last year for 2015. And 2015 as you know, 2015 this year is going to be financially the best year our company has had by far. And so there is no negatives here it’s just a function of timing. Pat you want to add to that. A – Patrick Chaffin: Hey Jeff, it is Patrick. I would just add to it especially to what Colin was saying, there was a lot of timing issues. We talked with the sales team and we did feel very good about the funnel. I would tell you the funnel remains very strong and what it really came down to in discussions with the sales team whether some groups that delayed their decision making a little bit longer than we anticipated. And while not to give you any additional information on April, I would tell you that where we stand at the end of April, we feel good that a lot of those timing issues are working themselves out. And we are in pretty good position year-to-date. Again like Colin said we are focused on rate and so we may sacrifice a few room nights here and there to drive better rate and we’ve seen that in the past couple of quarters where we are getting really good rate and we’ll continue to do that. As we are heading into Q2 it is a tough comp because we had the best second quarter in the history of the company this time last year but again we are very bullish on the year and feel like we can come in with a very solid year of production.

It’s good to hear. I guess to switch gears I am just curious, how are you guys thinking about transient booking volumes going forward. I know its small part of your business but I honestly would have expected not that I have a specific number in mind but I would have expected sort of more pronounced booking increases over time since Marriott’s are strong in that area and then prior to their involvement transient wasn’t a large focus for the company. Not so much this quarter, I am just curious if it has lived up to your expectations since you affiliated with Marriott? A – Patrick Chaffin: Yeah Jeff, this is Patrick again. That’s a great question. We’ve been very pleased with what Marriott has brought to the table on the transient side. If you compare what our business was doing back in 2011 prior to Marriott compared to where we ended 2014 and where we are thinking we are going finish 2015, they have brought about 140,000 transient room nights to the table. And they’ve also brought really good rates. So we are very pleased with what they have done here. They continue to drive the rate side and we see continued growth as we get more and more savvy and have some historical information under our belts for this plans, from a yield management and revenue management side for Marriott to manage. But all things are looking very good on that front.

Jeff, you know you make an interesting point that I actually want to add to it. If you think about our business today I was reading one or two of the other reports that you put out in the last 24 hours on organizations that we are sort of deemed to be competitors of, in reality probably not. But one company, you wrote their occupancy for 2014 operated at 82% plus and they think they can get more occupancy in their business. Our business this year, we are projected to do somewhere between 74 and 75 points of occupancy. But, the fact and matter is booking 2.2 million, 2.3 million room nights with the Marriott frequent flyer program this is continuing to build. This occupancy just is continuing to build. This occupancy this year it will be 1.5 points last year. Last year was up only year before. But the current level of occupancy that we are generating, 74 to 75 points of occupancy is materially lower than where we were at peak in 2007 with the Marriot frequent flyer program. So our business we believe will build -- is in the process of building back to this 80 points of occupancy. But the 74 to 75 points of occupancy that we are generating this year is driving a $5ish in AFFO and a dividend of $2.60. So we are extremely excited about what we see happening in 2016, 2017, and beyond and the implications that will have on the financial performance of our business.

I am flattered you are such an avid reader. I want this one last question Colin, and I recognize this is a bit open ended but I was curious what your sort of next plans are for Ryman because at the time of the split from Gaylord I think the hope was that the significant synergies would be realized and you’d go on the hunt for assets or a portfolio of assets and obviously the integration into Marriot took a little more time than you wanted it to take. So I am just curious like how are you spending your time on Ryman beyond just sort of the operation of the assets you have today?

Well, good question and that’s something that I am going to be talking to our Board about tonight and tomorrow because we have Board of Directors meeting here. I am spending with us putting Mark in the role that he’s in, I am spending more of my time figuring out how we continue to put on the accelerator and grow entertainment business and we are and have been actively looking at one or two big assets. But we are going to be disciplined here. We are not going to overpay for big assets. When our company is trading, our multiple has moved up here over the last 12 months and we have been very clear with the investment community last year, the year before, and the year before that we think the best value in the world is our own assets and that’s why we have been buying stock and setting converts and warrants. But we are somewhat at a little bit of an inflection point here and we have unlike a lot of the other real estate investment trust, we have the ability to grow the assets that we have. We have land in three of the four places, occupancies, and turned downs of room nights are moving into a very sweet spot. And so I think what you’ll see from us is potentially over the next one to two years the selected acquisition of one or two big assets. You’ll see selected deployment of cash -- of capital into our existing hotels because the returns on this capital are tremendous. They are not like building a new hotel. These returns are very, very solid and you’ll see us at some point when the time is right, the strategy is cost, the organization is right, we’ll do something with our entertainment business. And like every public company Jeff and I don’t say this tongue in cheek, I mean it, if somebody else feels they can do a better job with the company they know where we live and we are open to hear ideas and thoughts everyday of the week because we have that responsibility managing a public company but that’s what we are focused on.

Thanks guys.

And we expect to grow AFFO which as I would remind you again is running at $5 a share, adjusted EBITDA north of $6 a share, and a dividend of $2.60 and in all probability we will have to go higher with the level of performance in our business.

Thank you.

Thank you.

Your next question comes from the line of Chris Woronka of Deutsche Bank.

Hey, good morning guys. Wanted to ask you -- appreciate all the data points on the forward bookings and obviously think the rate growth you are talking about is encouraging and just wanted to kind of ask you how much -- what is the at room spend look like on that, should we assume that the at room spend picks up kind of in line with the rate increases, are these just better groups or are they just paying more on the base rate?

How would you answer it.

Hey Chris, it is Patrick Chaffin. A good question and at this point with a lot of these groups it is just the contraction was a minimum they signed up for. So, what we historically look at is the mix of corporate versus association in the distance of the rate on the books. The rate tells us how premium of a group they are. So as you are looking at 2016 for instance, I would tell you that we see corporate room nights increasing about 100,000 based on what's on the books right now. And so that encourages us that the outsider room spend will continue to grow and we will see some expansion there because of the type of mix that we are bringing in house. Other than that, it really comes down to about 90 days out these groups are planning with us and we get a good feel for they are going to perform against their history. But right now as we look to the future it is all about mix and the mix is very encouraging.

Okay, great. And then we have heard on some of the calls this quarter, some policies that have gone into effect and then I think Marriott was part of that where they were increasing last minute cancelation. I realized that is on the transient side but my question would be, are they also looking at maybe trading up some of the policies on the group business as well?

Well, in actuality they were -- a lot of the changes they made brought them more in line with the policy that we had on the books for several years.

On the group side.

On the group side and on the transient side. So, I think they saw our policies as a good practice and incorporated some of them in and I don’t want to generalize it too much, I mean they were making some other changes on their own but, I think that our brand did demonstrate that there were some opportunities there.

Okay, great. And then just on the acquisition front, I guess to follow-up on the last question, you guys, I guess when you think about it there are certainly markets you have talked about in the past but maybe can I talk about how you might view something in the context of doing it on your own, not new construction but an acquisition versus doing maybe two properties in some kind of joint venture. I mean how do you kind of delineate opportunity in terms of volume versus on balance sheet capacity?

Well, I would say to you there are multiple drivers to the answer to your question. The first thing is shareholder value. What does the deal look like, what are the JVs potentially look like, what are the control risks look like, those come into play. And the other thing is I would say to you that we generally don’t like being in the development business other than expansions in our existing hotels but just all of that has very high rates of return. I really don’t think that doing one hotel versus two JVs is a balance sheet issue for us. It is more of which market are they in, did they add to the rotation strategy, did they add to the retention of customers that -- that go outside of our system from time to time, those are the drivers of those types of questions.

Okay, very good, thanks guys.

Thank you.

Your next question comes from the line of Bill Crow of Raymond James & Associates.

Hey, good morning guys. Colin, your answer to the last question led me right to mine, which is you talked about the rotation amongst your properties but could you kind of look outside your properties and tell me how you are seeing rotation into some of the competitive markets that you don’t have a presence in, Vegas, Scottsdale, San Diego. We know they kind of come in and come out of favor so what markets are really driving group demand these days?

Yes, well the markets -- Bill, first of all good morning to you. The markets that we like are not just the markets we like, it’s the markets that we know the meeting time of likes. We were a company that did a ton of research. We wanted to know, not think where they went, we wanted to absolutely understand that. So the markets I would say to you that’s probably San Antonio in Texas is a good market and there is a lot of groups that want to go to San Antonio. The Arizona markets of Scottsdale may serve that Phoenix corridor. They want to go there because of the weather in January, February, March, April, May timeframe. Vegas is a market that customers do go to. Some customers go to but as we pointed out many times Bill, the Vegas market is a very, very different market from any other in United States of America. You got about 50% of the large groups who want to go there, the other 50% never want to go there and its black and white. West Coast, we obviously like San Diego. If you could find an appropriate asset in and around San Francisco market that will be good too. And then of course you’ve got the more Northern parts of the United States, the Chicago market, the Boston Market, a very, very good market simply because large corporate groups tend to want to go to these types of cities and some of them a lot of them are actually housed in those markets. So those are the markets that groups -- Miami is also one that’s rapidly becoming very sought after market. But those are the locations that we keep our beady eye on and so that’s the answer to your question I think.

Colin, within the U.S. maybe markets has been better than right there in Nashville and I was just curious as you look out to bookings three years out, four years out, is there any sign of burn out on the group part, is there any sort of reduction in demand as the rotation goes on and the people have said they’ve -- now have their fill of Nashville, anything in there indicated any change.

You know Bill, we certainly don’t see that in our lead volumes. We certainly don’t see that in our bookings. There is a ton of small hotels being built in downtown Nashville to accommodate the massive demand, surge in demand that’s coming from all across America and outside of America for people wanting to come to the playground of Nashville, Tennessee. But we don’t see this in the group, quite the contrary we see actually very, very healthy lead volumes here. And one of the things that we are in the process of doing and it is sort of being semi reported within the local press, we been doing some research about a pool facility of some kind to high quality high end pool facility to want accommodate the meeting plan. And the meetings that come here we do a lot of meetings where people want to bring their wife and family. And what we want to do is potentially do what we have done in both Orlando and in Texas. And our Texas hotel has that pool expansion that we put there has been to a large extent surprising to us. Our hotel this year is going to do north of 70 million in terms of profitability. And I remember back in five to eight years ago dreaming that we will get to 50. And so, that has been a very interesting thing for us and what we are looking at is potentially doing something here in this market to one, drive more leisure business but also to accommodate the desire and needs of meeting planners and create a differentiated product that you can find in places like Atlanta, New Orleans where this hotel here tends to compete with. We don’t compete within the market, we compete within these -- we compete for groups in the big markets of Atlanta, New Orleans, those types of places. So, no we don’t see any burn-out here. We see quite the contrary and this is one hell of a place to come to. People like coming to Nashville.

The other thing I would add to that just quickly is that when you look at large groups which is really our bread and butter, there is a limited number of hotels that they can go to if they want 200,000, 300,000, or 400,000 square feet plus of meeting space under one roof to have their event. So as we look forward there is not new supply being built so there is a limited position set for them and scarcity of assets.

I will go with Patrick, the only other thing I would add is just to give you some flavor for what’s on the books as you look at Opryland, lead volume is very encouraging and what’s on the book shows year-over-year increases all the way out through 2020. So just to add to what Mark and Colin have already said, we forget about Opryland in the Nashville market.

Thanks Patrick. I want to just throw one other quick question out there, we all are hearing more and more from you about the entertainment side of your business and certainly that’s more challenging for us to value, if we were going to do a sum of the part sort of analysis, would you put a higher multiple on that business, a higher multiple on the hotel business or just use a blanket multiple?

I think you are going to have to make that decision for yourself. But I know how I think about the business, if somebody came knocking on our door and said that they want to buy this business and they want to evaluate like arena business, I think we would shake their hand and say thank you very much. We are not, our company is not interested and by the way I think that will be the attitude of certainly one or two of our very large shareholders. We sort of see this business as a business that really generates content. Yes, it provides its phenomenal music experiences and social experiences, but we think that this business really provides and builds unique content and we are spending more of our time thinking about how we can actually build more content and do this. And frankly I suppose that would lead you to the view that our view is that a higher multiple business versus a lower multiple business.

Thanks for your time this morning, appreciate it.

Thanks Bill.

Your next question comes from the line of Shaun Kelly of Bank of America Merrill Lynch.

Hi, good morning and thank you for taking my question. I just wanted to maybe touch a little bit more on just the overall kind of forward book of business, so we’ve heard a number of competing companies in the group segment here whether it’d be I think Hyatt yesterday or Sunstone and a few other companies, talk a little bit more about aggressively trying to hold back some group nights in order to obviously get a chance to push rates higher with the transient business. As we get later cycle, can you just remind us like what sort of patterns you may have seen before and did that pattern typically benefit you and do you feel that in a material way as groups are starting to get pushed out of other hotels when occupancies are as high as they are starting to be?

Yeah, Shaun thank you. So first and foremost we have no misconception of what we are. We are the dominant business in group we believe in the United States of America. When you add up I think group space we got as much group space in these four hotels as the other hotel rates do combined. So we are a group business and what we believe is just like if you were in the office leasing business what we want is, we want our hotels full. So what we do is we maximize the rooms we book week by week, month by month, year by year and we take pride in the fact that we have got 5.6 million room nights on the books Patrick for future years representing north of $2 billion of business. And you will not see us holding back room nights and I don’t think our manager philosophically believes that in these types of hotels. Our goal is to book as many quality group rooms as we can book for forward years and then build these big rocks, put these big rocks into these businesses, and then as we get nearer and nearer the stay of those groups, we sprinkle around a little sand and fill them up around the edges. That’s our game plan. And what we believe we have here is a very differentiated economic model. And so when the cycle gets to the end, although it’s hard to see other than an economic downturn we are not going to see the cycle come to an end in our sector caused by all this supply. Because there is no material with new supply being build. But let’s pretend for a second we come to the next version of 2008 and 2009, we want to make sure that we have when we go into that down cycle, that we have a ton of business on the books and that’s why we as a company performed so admirably comparable to the rest of the industry in times when the cycle goes off. So that’s how we think about it.

Thanks for that color.

And by the way, I suppose Shaun, that if hotel companies like Hyatt and whoever are saying we are not going to book groups because we want to take the risk that in a year from now or two years from now leisure customers are going to be there, we like their strategy and my only answer to that would be, I remember in the middle of 2008 when people were buying hotels a million dollars a room or the beginning of 2008 a million dollars a room and then 12 months from then the world was upside down. And I am not -- we are not in the business of not booking group rooms, gambling that two years from now the worlds going to look the same.

And Sean, this is Patrick. I would add to that, that as an asset manager there is a very positive healthy natural tension between Marriott and us, of them pushing the rate and focused on rate and us trying to make sure that we are taking care of the future years down the road when the cycle inevitably will turn. And so you know it is a balancing act to make sure that they maintain their focus on rate and that we maintain our focus on taking care of the future. And that we’re taking advantage of the current environment but always with the mind to the future.

Thanks for that and I think that last part of your comments Colin really was where I was heading with the question which is more is it kind of constructive for you, so my follow up will just be on the Texan in particular it looked like that property performed really well and I am curious like, are you -- did you see any oil and gas related cancellations during the quarter and if that -- and how much are those types of groups or larger trade shows, how much of that is your overall kind of is your overall business exposed to the commodity piece.

Yes, very little and the answer is to your two questions there no and no. The first quarter was the best first quarter we’ve ever had in the Texan and ever had at Texan and I don’t think we saw any cancellations for oil and gas.

No, the Houston market is feeling that pain but we did not feel it in Dallas.

Perfect, that’s all from me. Thanks guys.

Your last question comes from the line of Harry Curtis of Nomura.

Hey, good morning everyone. Just a follow up on the relationship with Marriott, can you give us a sense of the differential in the rate that you’re seeing from the transient nights that Marriott is booking versus the average rates that you are getting, how meaningful is it if at all?

Harry, good morning Colin, look forward to seeing you at your conference in several weeks.

Thank you.

Patrick can you take this one.

Sure, so let me give you sort of a little background and we finished 2014 with group rate at about $171.50 and transient rate at about $185 for our brand. As we move into 2015 we see that the group rate continues to improve and transient rate continues to improve and that relationship pretty much stayed the same although group is starting to make up a little bit of ground there.

I guess given the differential though the question is, are you intending to shift the mix bit more towards transient, does it make sense, and is your linkage to the Marriott system capable of driving any mix shift that you might like to see an increase?

Yes, Patrick take the second part of it but one thing I want you to keep in mind Harry, every room night whether it is paying $185 or $178 are not created equal. What I mean by that is the group consumer particularly the corporate group consumer plans to consume far more out of the room than the leisure customer comes through Marriott and in other distribution systems. One, we have a group customer in house for three days. They eat breakfast, they have lunch, they have dinner, they drink in our bars, that is not necessarily the pattern of the leisure consumer. So, Patrick, take the rest of that.

So Harry, to your point we have been increasing overtime as part of the Marriott family of brands. We have been increasing the amount of transient that we have in our mix and our eyes towards the future is making sure that we don’t block out weekends with group business when we know that we can drive transient or that we don’t block out certain periods of the summertime or holidays when we know that we can drive a lot of transient and get premium rate. So, we are not going to be looking to lower group mix during the mid week or Sunday nights or anything like that but we are always mindful of opening up and being very careful in where we book groups into when it comes down to Thursday, Friday, Saturday nights, etc.

Okay, just a quick follow-up on margins. At both Opryland and Gaylord Palms your margin either improved at the Palms and they are relatively flat at Opryland, was pretty impressive given the top line performance. Was anything -- was there anything in either of those two properties that was either one off or have you been doing more aggressive cost cutting, I am just trying to understand the relationship between the two, thanks?

Yeah, at Palms there was no one-off. That was just good performance and continued margin management and continued -- the synergies continued to layer into the business overtime and get stronger as our relationship with Marriott continues to mature. At Opryland, the only thing that I would call out is that there was the insurance coverage that we received, a small portion of it or partial payment that was received of $1.2 million. That is recognized as other income and flows at 100% to the bottom line. So that helped the margins somewhat at Opryland but even if you remove that, they did an excellent job of managing their margins through the norovirus and the winter storm challenges up January and February.

Okay, that does it for me. Thank you very much.

Thanks Harry. I think we will do one more question if there is one Lori.

And there are no further questions. Mr. Reed do you have any closing remarks.

No, only that I thank everyone for joining us and if you have any follow-ups, you know how to get a hold of the CEO and Mark and I will be on the sort of Investor road for the next I suppose, Mark over the next month too and we will have multiple opportunities to see all of our investors as we proceed through the country and thank everyone. Thank you and good morning.

Thank you for participating in the Ryman Hospitality Properties first quarter 2015 earnings conference call. You may now disconnect