Ryman Hospitality (RHP) Earnings Call Transcript

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DATE

Tuesday, Feb. 24, 2026 at 10 a.m. ET

CALL PARTICIPANTS

• Executive Chairman — Colin V. Reed
• President and Chief Executive Officer — Mark Fioravanti
• Chief Financial Officer and Executive Vice President — Jennifer L. Hutcheson
• Chief Operating Officer — Patrick Chaffin
• President, Opry Entertainment Group — Patrick Q. Moore

TAKEAWAYS

• Full-Year Adjusted FFO -- Above the high end of prior guidance, supported by strong hotel portfolio performance and entertainment segment results.
• Entertainment Segment EBITDAre -- Surpassed the high end of guidance, with programming at the Opry delivering record monthly revenue and adjusted EBITDAre in October.
• ICE Ticket Sales -- Increased more than 14% to 1,500,000, a portfolio record.
• Same-Store Hospitality Revenue -- Highest-ever quarterly total revenue and fourth-quarter adjusted EBITDAre, driven primarily by holiday demand and increased leisure volumes.
• Group Bookings -- Over 1,200,000 gross group room nights booked for all future years in the quarter; December produced all-time high future-year group rooms revenue, room nights, and ADR.
• Same-Store Group ADR on December Bookings -- Up more than 10% compared to December of the prior year.
• 2026 Group Business Pace -- Group rooms revenue on the books up ~6% compared to the same time last year; occupancy at year start, approximately 50% on the books.
• 2027 Group Business Pace -- Group rooms revenue on the books up ~5%; ADR pacing mid-single-digits higher.
• Entertainment Segment Revenue Growth -- Nearly 12% year over year; adjusted EBITDAre up nearly 13% for the quarter.
• Liquidity -- $471 million unrestricted cash at quarter end; total available liquidity increased to ~$1.4 billion pro forma for the expanded credit facility refinancing.
• Pro Forma Net Leverage Ratio -- 4.3x, based on total consolidated net debt to adjusted EBITDAre, assuming a full year of Desert Ridge contribution.
• Credit Rating -- Fitch upgrade to BB from BB- in December, resulting in a favorable interest margin reduction on Term Loan B.
• Capital Expenditures -- 2026 planned investment of $350 million-$450 million, mostly in the hospitality business.
• Dividend Declaration -- First-quarter dividend of $1.20 per share, payable April 15, 2026, with intent to continue paying out 100% of REIT taxable income.
• 2026 Guidance Midpoints -- Same-store RevPAR and total RevPAR guidance at 2.5% growth; same-store hospitality EBITDAre margin midpoint includes approximately 2.5% operating expense growth or 10 bps of margin expansion.
• Entertainment Segment 2026 Guidance -- Adjusted EBITDAre midpoint implies nearly 10% year-over-year growth, with seasonality weighted more toward the second quarter.
• Winter Storm Fern -- "Was a modest drag on January results," with Q1 2026 RevPAR and EBITDAre expected to be roughly flat and margin to decline by about 100 basis points.
• Opryland Renovations -- Approximately 40% of existing carpeted meeting space refreshed; 100,000 square feet expansion to open in 2026.
• Gaylord Portfolio Share -- Delivered a "RevPAR index on the same-store side of 143%" in Q4 versus its Marriott-defined comp set, indicating a 1,200 bps year-over-year improvement.
• JW Marriott Desert Ridge -- Transient demand rose nearly 10% year over year; constructive rotational group business emerging since acquisition.
• Group Mix Shift -- Corporate mix entered the year about three points higher than last year, reducing SMERF and Association segment volume.
• In-the-Year, For-the-Year Cancellations -- Q4 cancellations up about 3,000 room nights; all were company-specific, largely due to executive turnover, not macroeconomic drivers.
• Government Business Exposure -- Made up about 0.4% of total group room nights on the books as of January 1.

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RISKS

• Macroeconomic uncertainty and political volatility cited as primary factors potentially impacting meeting volumes and full-year results, with management stating "a measured view of demand is prudent."
• Winter storm Fern caused a "modest drag on January results," expected to result in roughly flat Q1 RevPAR and a ~100 basis point decline in adjusted EBITDAre margin for same-store hospitality, as well as a several million dollar EBITDAre decline in Entertainment.
• 2026 is framed as a "challenging comparison" year for both segments, with guidance reflecting "flattish leisure performance" and possible construction disruption impacts at Opryland, Gaylord Texan, and Hill Country JW hotels.

SUMMARY

The call confirmed adjusted FFO and entertainment segment results above the high ends of guidance, while full-year revenue was above the guidance midpoint. Executives emphasized continued advances in group bookings, premium corporate mix, and a strengthened liquidity position following credit facility expansion and Fitch ratings upgrade. Strategic investments enabled notable shifts in group room revenues, positive meeting planner sentiment, and increases in outside-the-room spend. The company described early-stage traction from the JW Marriott Desert Ridge integration, industry-leading RevPAR index gains, and upcoming capacity enhancements at Opryland and other assets as core growth catalysts.

• Leadership highlighted ongoing investment in food and beverage outlets, meeting space modernization, and direct engagement with meeting planners as primary drivers of increased share versus the Marriott comp set.
• Rotational group sales leveraging the combination of JW and Gaylord properties generated 22,000 incremental room nights in the first quarter of dedicated efforts.
• Entertainment segment expansion will include new venues in Las Vegas and Orlando, with management noting the strategic importance of partnerships and franchise opportunities due to global demand for country music brands.
• Management identified procurement efficiencies and labor management AI initiatives in collaboration with Marriott as expected contributors to future margin improvement.
• The company signaled comfort with previously set four-year guidance, adjusting assumptions for property acquisitions and expansion plans in line with recent transactions and project status.

INDUSTRY GLOSSARY

• RevPAR: Revenue per Available Room, a standard hotel industry metric for comparing room revenue performance.
• EBITDAre: Earnings Before Interest, Taxes, Depreciation, Amortization, and real estate-related items; a REIT-standard profitability measure adjusted for non-core property-level items.
• SMERF: Meetings originating from Social, Military, Educational, Religious, and Fraternal groups — a frequently referenced hotel group business segment.
• TrevPAR: Total Revenue per Available Room, capturing both room and non-room revenue streams per unit of hotel capacity.
• ICE: Brand-specific holiday-themed hotel events and attractions that materially impact seasonal ticket sales and hotel guest experiences for the company’s portfolio.

Full Conference Call Transcript

Colin V. Reed: Thanks, Jen. Good morning, everyone, and thanks for joining us today. We are pleased to report full-year results above the midpoints of our guidance ranges and for the entertainment segment, as well as AFFO and AFFO per share, above the high ends of our guidance ranges. The fourth quarter came in ahead of our expectations at the start of the quarter due to strong reception for our holiday programming in our hotel portfolio, and better-than-expected volumes in our Downtown Nashville entertainment venues. Looking back at how we expected 2025 to play out when we first provided guidance a year ago, our results excluding the JW Desert Ridge acquisition are almost right on the midpoints of that initial guidance range.

To be in the position we sit in today is an incredible accomplishment in what was a challenging year and a testament to both the strength of our business model and the quality of our people.

Importantly, we managed last year’s volatility while continuing to advance our long-term strategy, our investments in the portfolio continue to differentiate our platform from our competitors and attract more premium group customers. In our hotel portfolio, we acquired the JW Desert Ridge, an asset that’s long been at the top of our acquisition list, which expands our rotational group customer strategy into a new top 10 meetings market and creates opportunity for a rotational pattern within the JW Marriott brand. Also, we continued to progress our multiyear investment plan for Gaylord Opryland.

Today, we have now refreshed about 40% of the hotel’s existing carpeted meeting space, and we are nearly halfway through the 100,000 square feet meeting space expansion which will open next year. Foundry Field House, the new sports bar development with premium indoor/outdoor reception space, will open in April.

Our recently completed investments are generating early returns. Gaylord Palms and Gaylord Rockies, which received meaningful investments in 2024, both delivered record top- and bottom-line performances in 2025. And given the rotational nature of our customer base, these improvements are driving meaningful share gains for the portfolio as a whole. For the trailing twelve months through December, the same-store portfolio achieved the highest RevPAR index to the Marriott-defined competitive set in the portfolio’s history, excluding, of course, the COVID-impacted periods.

In our entertainment business, we have continued to expand our growth platform, especially in festivals and amphitheaters. This includes our latest win to program and manage the 14,000-seater capacity CCNB Amphitheater in Simpsonville, South Carolina. Our partnership with Southern Entertainment, who has been producing the Greenville County Music Festival at CCNB since 2018, helped us build a strong relationship with the City of Simpsonville, and our combined capabilities and expertise offer a compelling solution. This success in particular underscores the strength of our platform model.

In addition, we are continuing the expansion of the Category 10 brand with our friend and superstar Luke Combs with a Las Vegas location opening in 2026 and with a third location to be developed at Universal CityWalk in Orlando, adjacent to the Islands of Adventure theme park.

Early returns on our investments behind Opry 100 continue to exceed our expectations. Programming in October, the official birthday month, produced a record number of shows and attendance, resulting in an all-time high monthly revenue and adjusted EBITDAre for the brand. We expect this momentum to continue into 2026 and beyond.

Now before I hand it over to Mark, a comment or two about what lies ahead. A week ago, I received a monthly report from an outside organization comparing returns for publicly traded lodging companies. It is worth highlighting that since our REIT conversion announcement in 2012, our stock has generated a nearly 12.5% annualized return, including reinvested dividends. This represents a rate of return of approximately 2.5 times greater than that of our next highest REIT peer over the same period. This is quite an incredible difference. And it got me reflecting about the last thirteen years and how we are positioned for the future.

It would be my view, and I think those of my colleagues, that we are certainly better positioned today to create value than we were back in 2013.

At our hotel business, we now own seven world-class, market-leading hotels, which are in great physical shape and most of which we plan to enhance and/or expand over the years ahead to make them even more competitive in the markets that they are in. Over the years, I have heard some members of the analyst community questioning the underlying strength of the large meetings industry, particularly in economically trying times. There was some of this during last year’s third quarter. But the reality is the large meetings industry is massive here in the United States, and Gaylord and the Gaylord Hotels brand has such a small share.

But our relationship with the meeting planner is so good and we believe we can capture more share as our rooms and meeting space grows and our relative positioning continues to strengthen supported by our fabulous service levels, and our people-centric culture continues to thrive. And from an amenities perspective, we are constantly upgrading, adding sports bars, upgrading restaurants, and expanding pools and other amenities. Yes, our hotel business is awfully well positioned as we look to the future.

And then, of course, so is this gem of an asset we own that we refer to as our entertainment business that’s growth characteristics are materially better today than back in 2013. It is quite incredible what is happening to the music we call country as its popularity explodes all over the world and creates the desire for folks to come visit Nashville. Live entertainment is a very valuable asset in this day and age. And we are deeply engaged in figuring out the best possible path to create even more value for our shareholders.

Now hopefully, those of you who have followed our company for a while will remember that back a couple of years ago, we laid out a four-year plan to the investment community at our Investor Day in January 2024. By 2026, we expect to have initiated all major capital projects in the plan, with the possible exception of the Gaylord Rockies expansion, and we will have meaningfully expanded OEG’s growth platform as well. Looking ahead, we continue to feel very comfortable with the targets we outlined then, and we look forward to updating you on our progress as milestones are hit. As we embark on 2026, the period ahead looks awfully exciting for us.

And as always, we appreciate your interest and support. Now with that, let me turn you over to Mark.

Mark Fioravanti: Thanks, Colin, good morning, everyone. I will review our fourth quarter results and also provide color on how we are thinking about 2026.

I will start with our hospitality business. Our same-store hospitality segment delivered the highest total revenue of any quarter and the highest adjusted EBITDAre of any fourth quarter driven by strong demand from holiday programming and higher leisure volumes across the portfolio. ICE ticket sales increased more than 14% to a record 1,500,000 tickets. The Gaylord National had its best season since 2010, and Opryland and The Rockies had their best seasons ever. In its second year, ICE at the JW Hill Country achieved the highest guest satisfaction ratings for holiday attractions across the portfolio. Leisure performance at Opryland was a bright spot in the quarter.

Both leisure demand and leisure ADR increased year-over-year, and record ICE volumes contributed to strong flow-through.

Our group business also performed well. Same-store attrition trends improved year-over-year, and sequentially from the third quarter, and same-store banquet and AV revenues were up nearly 5% despite lower corporate group volumes compared to last year. Same-store banquet and AV contribution per group room night, a proxy for catering spend per group guest, increased more than 10% year-over-year, an indication that once on property, groups continue to spend at healthy levels. In the fourth quarter, the same-store portfolio booked more than 1,200,000 gross group room nights for all future years. Notably, meeting planner sentiment improved as the quarter progressed, leading to record room night revenue and ADR bookings production for all future years during the month of December.

ADR on those December bookings was up more than 10% compared to what was booked in December 2024. As a result, at December, same-store group rooms revenue, room nights, and ADR in the books for all future years were at all-time highs.

Looking ahead, our same-store group pace for 2026 and 2027 remains healthy. For 2026, same-store group rooms revenue on the books is up approximately 6% compared to the same time last year for 2025, and as expected, we entered the year with approximately 50 points of occupancy on the books. For 2027, same-store group rooms revenue on the books is up approximately 5% compared to the same time last year, and ADR on the books continues to pace up in the mid-single-digits range. The number of new leads and late-stage opportunities also remains near record levels.

Let me make a few comments on the JW Marriott Desert Ridge before moving on to entertainment. The fourth quarter results were in line with our expectations. Transient demand increased nearly 10% year-over-year, supported by expanded holiday programming, which we view as an encouraging indicator ahead of introducing ICE in 2026. The more that we learn about this property, the more bullish we are on its long-term potential under our ownership.

Now turning to our entertainment business. The Entertainment segment delivered fourth quarter revenue growth of nearly 12% and adjusted EBITDAre growth of nearly 13%. As Colin mentioned earlier, the Opry delivered a record quarter behind strong October birth-month programming and attendance. In addition, a strong show calendar at the Ryman and improved volume in our downtown Nashville venues contributed to the growth.

Before I turn it over to Jennifer, let me provide some color on our initial guidance ranges for 2026. For our same-store hospitality business, at the midpoint, RevPAR growth of 2.5% implies modest assumptions for growth in group rooms revenue and flattish leisure performance. As I mentioned earlier, group rooms revenue on the books for 2026 is up approximately 6% compared to the same time last year. The difference between our pace entering the year and our RevPAR growth guidance range includes assumptions for in-the-year, for-the-year group bookings, group attrition and cancellations, and transient leisure performance. Historically, it is typical for RevPAR growth to actualize lower than the group pace at the beginning of the year.

Same-store total RevPAR growth, also 2.5% at the midpoint, reflects growth in banquet and AV revenue behind stronger corporate mix and contribution from the new sports bar at Gaylord Opryland beginning in the second quarter. The midpoint of guidance range for same-store hospitality EBITDAre implies approximately 2.5% operating expense growth or 10 basis points of margin expansion as we continue to work with Marriott to improve efficiencies. The level of macroeconomic uncertainty and its impact on meeting volumes and meeting planner sentiment will be the primary driver of how our actual full-year results compare to this initial guidance range. Given the current political and economic environment here and abroad, we believe a measured view of demand is prudent.

For the JW Marriott Desert Ridge, the midpoint of guidance range for adjusted EBITDAre reflects our first full year of contribution. The meeting space conversion currently under construction remains on track to open in April 2026, and we have assumed some modest marketing investment behind the launch of our ICE holiday programming at the property.

And finally, for our entertainment business, the midpoint of the guidance range for adjusted EBITDAre reflects nearly 10% growth year-over-year on increases in our existing businesses as well as contributions from our recently announced projects coming online in 2026. Note that 2026 seasonality will be more heavily weighted to second quarter compared to 2025. The 2025 is a challenging comparison for both business segments. Recent winter storm Fern was a modest drag on January results. For the same-store hospitality business, we expect first-quarter RevPAR and total RevPAR to be roughly flat and adjusted EBITDAre margin to decline approximately 100 basis points. For the Entertainment business, we expect first-quarter adjusted EBITDAre to decline by several million dollars.

With that, now I will turn it over to Jennifer to run you through our financial position and cash flow expectations for 2026.

Jennifer L. Hutcheson: Thanks, Mark. Starting off with liquidity, we ended the fourth quarter with $471 million of unrestricted cash on hand, and our revolving credit facilities undrawn. Total available liquidity was nearly $1.3 billion. We retained an additional $29 million of restricted cash available for FF&E and other maintenance projects.

Turning to the balance sheet, at the end of the quarter, our pro forma net leverage ratio based on total consolidated net debt to adjusted EBITDAre, assuming a full-year contribution of adjusted EBITDAre from the JW Marriott Desert Ridge, was 4.3x. In December, Fitch upgraded our corporate family rating to BB from BB-, which in turn lowered the applicable interest rate margin on SOFR for our corporate Term Loan B from 200 basis points to 175 basis points. And in January 2026, we successfully refinanced our corporate revolving credit facility, increasing the size from $700 million to $850 million and extending the maturity from May 2027 to January 2030.

Pricing and other terms of that agreement are largely similar to our previous credit facility agreement. Pro forma for this transaction, total available liquidity increased to approximately $1.4 billion.

And finally, let me comment on our anticipated major cash outflows for the year. Regarding our outlook for capital expenditures in 2026, we expect to invest between $350 million to $450 million, primarily in our hospitality business. Our earnings release provides more detail on our capital plans and expected project-level costs. Regarding our dividend, we are pleased to announce the declaration of our first-quarter dividend of $1.20 payable on 04/15/2026 to shareholders of record as of 03/31/2026. It remains our intention to continue to pay 100% of our REIT taxable income through dividends. And with that, Bo, let us open it up for questions.

Operator: Certainly, Ms. Hutcheson. Thank you, ma’am. Ladies and gentlemen, if you would like to remove yourself from the queue, you can do so by pressing star 2. Additionally, we ask that you please limit yourself to one question and one follow-up so we can get to as many questions as possible. We will go first this morning to Cooper R. Clark with Wells Fargo.

Cooper R. Clark: Thanks. Thanks for taking the question. Curious if you can provide an update on your group business mix for the year and how that is impacting your spread between RevPAR and TrevPAR assumed in guidance? Patrick, you want to…

Patrick Chaffin: Sure. Yeah. Good morning. Yeah. We are in a position as we entered the year with a higher level of corporate mix on the books. It is about three points higher than last year, decline in our other segments in SMERF and Association. As a result, that positions us well for outside-the-room spend as we head into this year. Great. Thanks. And then appreciate some of the earlier comments in the prepared remarks on the RevPAR guide, but hoping you could provide some additional details on the puts and takes as we think about 2.5 midpoint within the context of the 6% group pace for the year.

Trying to think about some of the headwinds potentially embedded in guide as we contemplate last year’s higher initial RevPAR guidance on lower group pace?

Colin V. Reed: Mark, you want to take that?

Mark Fioravanti: Yeah. I mean, so, typically, when you enter the year, you are typically going to, by the time you factor in your in-the-year, for-the-year, your attrition and cancellation and your leisure business, you are typically going to finish the year at a lower average RevPAR growth. And as we mentioned in the prepared remarks, what we are really looking at is a combination of what we pick up from in-the-year, for-the-year bookings as well as attrition and cancellation. I would tell you that our guidance does not assume any major shift in what we are seeing in trends. As I said, our guidance reflects flattish leisure business.

And broadly speaking, what I would tell you is that what it ultimately reflects is what we do not know about what is happening in the economy. When you look at what transpired last year with Liberation Day, tariffs on and off, some of the different political and geopolitical issues that are occurring right now in the economy and how they are influencing our meeting planner sentiment as well as meeting planner trends, there is just not a lot of clarity into how things are going to unfold this year.

So as I said in my remarks, we felt like it is prudent to take a fairly conservative view on demand for the year and we will see how it shakes out and we will update you as the year progresses on how we are performing.

Cooper R. Clark: Great. Thanks. Appreciate the color.

Mark Fioravanti: Thank you.

Operator: Thank you. We will go next now to Charles Scholes of Truist Securities.

Charles Scholes: Hi. Good morning, everyone. Two questions. One, can you share any additional or latest thoughts about possible development or expansion at the Rockies? That is the first one.

Patrick Chaffin: I will start with that. Thank you.

Mark Fioravanti: Yeah. We continue to work on expansion, as you know. By the way, good morning. You know, that is an asset that pre-COVID we were prepared to expand. That business, as you know, has performed extremely well. And we are very, very bullish on that market in the long-term, the long-term potential of that market. As we have said on previous calls, we are working through a number of issues at the local level in terms of property taxes, etcetera. And that work will ultimately determine how we expand and when we expand. But I think we will have more to say on that over the next few quarters.

I think, if I may, that hotel this year, I think it is right, Patrick, has the highest occupancy and the demand for group in that hotel is as strong as it has ever been. And I think we are a lot nearer pulling the trigger on an expansion in that hotel today than we were a year ago. I think it, as Mark said, I think you just have to be a little bit patient over the next one or two quarters. But we really do like the trajectory of this hotel.

Patrick Chaffin: The other comment I would make is just to remind everyone, the investments that we made over the last couple years, the new food and beverage and some of the new meeting space, all those investments were made to accommodate an expansion. So from a food and beverage capacity and a meeting space capacity, we are prepared to receive additional rooms there. And those investments are really paying off right now. They are doing extremely well. You had two questions.

Charles Scholes: Yes. Second one, just a little bit more backward looking here. You did have a sizable year-over-year increase in-the-year, for-the-year cancellations in the quarter. Now granted, it was only, I think, 5,000 room nights, but what drove that? Was it government cancellation? Anything else? Or not government, but the government shutdown-related cancellations. Thank you.

Patrick Chaffin: Yeah. Great question. Thanks. This is Patrick Chaffin. Yeah. To your point, cancellations are up about 3,000 room nights, but they were down significantly versus Q3, which is when we saw a lot of the impact of the tariff situation. But they were in line with levels that we saw both in 2016, 2017, 2018, and 2019 before COVID. So we are not concerned in any way. And if you look at the nature of the cancellations, to your point, they were all company-specific. There were no macroeconomic concerns or reasons given. Mostly, it was CEOs or C-suite turnover as the primary reason for the cancellation. So not macroeconomically driven and in line with what we saw prior to COVID.

So we were not concerned.

Mark Fioravanti: Okay. Thanks. And let me remind you and everyone else that we have really good contracts. So when cancellations occur close in, we tend to collect the profitability loss. So our business model is very different to most of the other hotels that you follow.

Charles Scholes: Thank you for the detail. I am all set. Thank you.

Operator: Thank you. We will go next now to Smedes Rose with Citi.

Smedes Rose: Good morning. I wanted to ask you, you mentioned in your opening remarks significantly better holiday programming results. And I was just wondering, do you think you just went into the quarter being conservative, given what had happened in 2024 where I think it was sort of disappointing results? Or are you sort of marketing or ticketing differently? Kind of what maybe did you learn this year that maybe can work going forward?

Colin V. Reed: There are multiple things. Do you want to give it a shot, Patrick?

Patrick Chaffin: Sure. Hey, Smedes. This is Patrick. Good question. We did a lot of research in September to try and understand the mindset of the consumer going into this holiday season. And it was very clear that there was a very cautious attitude and really focused on value as we were entering the season. So we shifted a lot of our marketing to buy early and bundling opportunities, and it started the volume of demand on the books early, and we really built from there. Once we saw the consumer get on property, they were hesitant. So we feel that we made the right decision in getting them to book early through bundling and special offers.

But as you can see, it still generated really, really solid revenue for us. So getting folks on property and getting them exposed to our food and beverage opportunities and other outside-the-room spend really paid off for us. I would tell you that until we see a dramatic shift from a macroeconomic perspective, we are probably going to maintain that same strategy of getting folks in early and booking early and giving them bundling opportunities to do so they see the value.

But we were very, very proud of where we performed this year and have some exciting news that we will be talking in July as far as themes for next year that we think will drive even more demand.

Smedes Rose: Great. And then can I just ask you, you mentioned in your release $23 million of EBITDA disruption in 2025? Does your outlook incorporate a certain amount of construction disruption this year as well?

Jennifer L. Hutcheson: Hi, Smedes. It is Jennifer. Yes, it does. We have those projects that are out in the release that are continuing on into 2026, largely at Opryland and, of course, the rooms renovation, wrapping up the Gaylord Texan as well as the rooms renovation in the Hill Country JW that will kick off midyear or post-April after the Valero Open. So those will have some impact on the results and our expectations for 2026. And we would not expect those to be meaningfully different than what we saw in 2025.

Smedes Rose: Thanks, Jen.

Operator: We will go next now to David Katz with Jefferies.

David Katz: Hi, good morning. Thanks for taking my questions. I wanted to just focus on the Entertainment business. Mark, I think you may have said in your prepared remarks that 1Q Entertainment should be down. Could you, would you mind, a, repeating yourself just a bit and, two, just giving us some color on the cadence for the year as we think about the Entertainment business and what is driving that cadence?

Mark Fioravanti: Yeah. So in terms of the cadence for the year, well, actually, do you want to…

Patrick Q. Moore: Sure. Sure. Yeah. You are sitting here so you can. Yeah. This is Patrick Moore. Yeah. A couple of things in Q1. One, we had the launch of Opry 100 last year as an NBC special that was a little bit of a spike in March. But most of what you are seeing from a Q1 to the rest of the year is a shifting in concert and concert count across the portfolio, which is much bigger, and the concentration in both amphitheaters and festivals in that Q2, Q3 period. So those are part of the reasons for that shift.

Mark Fioravanti: Okay.

David Katz: And, you know, if we could just get an updated view while we have you on sort of how you see the earnings power of this, you know, looking out, you know, years, couple years into the future, what should we be setting our sights on what this business can do as you see it today?

Colin V. Reed: Yes. Please, Colin. So David, good morning to you. This business, in our opinion, is awfully valuable. Live entertainment is such a sought-after commodity in this day and age. And we think we see a lot of growth in this business over the next three, four, five years. And I can tell you that the folks in this room, Patrick Moore, Mark, and myself, we spend more of our time fielding inbound on this business than we do certainly on our hotel business. The opportunity for growth in this business, I think, over the next two to three years is extraordinary. We think that we will plug in more amphitheaters.

We believe that we will do more Category 10s, but more Ole Reds. And I think there is opportunity here in Nashville for us to take all of our undeveloped land around the Opry House, and we have, I do not know, 12, 15 acres of land there, to do something fairly spectacular for our business and the City of Nashville to accommodate the amount of people that are just pouring into Nashville now wanting to experience country music in its real authentic form. So, we are not going to give you numbers for 2027, 2028, 2029, but I can tell you our board last week reviewed our long-range plan for this business and it is very attractive.

And we like what we have on our hands here, and we are trying to figure out how we create even more value for our shareholders than we have over the last few years. I know that is a bit waffly, but we have a lot of things we are working on here, David, and this is an outstanding business.

David Katz: That is great. Thank you.

Operator: Thank you. We will go next now to Duane Thomas Pfennigwerth with Evercore ISI.

Duane Thomas Pfennigwerth: Thank you. Good morning. I appreciate the commentary about acknowledging what you do not know about how the macro will play out this year. But I wonder if you could comment on what your business is telling you. If we play back what you saw in the fourth quarter from a group demand perspective for future bookings, are you seeing any changes in booking patterns versus what you would normally expect for a fourth quarter? Any particular types of customers or industries that stood out positively or negatively?

Patrick Chaffin: Hey. Good morning. This is Patrick Chaffin. Let me hit a couple of things here. First, I would start with bookings. As far as what we saw in the fourth quarter, I would say the most important thing was we saw an easing in the tensions that have been created by the tariff situation back in April 2025. So if you think about it, recall that our leads were down about 4% in the third quarter, and we were messaging on that third quarter call that there could be some hesitancy on the part of meeting planners as we move through the fourth quarter regarding forward bookings because of the macro situation.

We were going to watch that and see what would happen. October, November really followed that trend where we saw leads down and production down. But then December, which is the most important bookings month of the entire year for us, came roaring back, and we saw meeting planners relax in their hesitation. And our sales team came through really, really strong with the very best December production in terms of room nights that we have ever seen in the company’s history, and ADR continued to be strong. So that is a clear indication that we were not just selling room nights to get room nights out the door, but we were doing it at a growing rate.

It ended up being a record for the company. So we were encouraged by what we saw develop as we went through the fourth quarter in bookings because it did indicate that the tension around tariffs was starting to ease. You know, we have talked a little bit about leisure. Let me hit that side of the business. We are talking about flattish, but the reality is if you dig into that, leisure is flattish because of the renovations that are going on at Texan and Hill Country and the fact that we have more group room nights on the books. And so some of that group is blocking out some of the transient opportunities.

And so when you consider that and you look at the hotels that do not have renovations, they either have more group business on the books or they actually see an improvement in leisure year-over-year. So group business is moving in a good direction. Leisure looks very, very strong. As we look at spring break, everything is coming in as we would expect thus far. We are still early in that process or in that timeline. But we see nothing that gives us concerns. Then, you know, government is the last thing that I will hit. There has been a lot of concern around government business.

We have been pivoting away from it and it composes less than 0.4% of what is on the books for us. We feel like we are in the right group business right now given everything that is going on. And our leisure business remains strong. So fourth quarter for us gave us a lot of confidence that we are in a good spot going into this year.

Mark Fioravanti: Leads are good. Attrition and cancellations, really no issues. You know, on-property spending is still very good. So the early indicators that we look for, we are not seeing anything flashing yellow or flashing red. It is really just a recognition of the fact that when you look at what has happened over the last twelve months, environmentally, it is very difficult to predict where we are going to be tonight after the State of the Union, let alone six months from now.

Colin V. Reed: Yeah. And look, the other point I want to make, and I sort of tried to make it in my prepared remarks, is that the folks sitting around this table that have been looking after and building this hotel business, we have been doing this for twenty years, and over this period of time, we have dealt so many times with the mood of the meeting planner shifting. Yet, our returns and our business and our performance, we sail through that because our relative positioning is so strong compared to those folks that we compete with.

And so, yeah, the meeting planner’s mood may shift in 2026 negatively like it did in the third quarter of last year, but our business will be just fine.

Duane Thomas Pfennigwerth: Appreciate the thoughts. Thank you.

Colin V. Reed: Thank you.

Operator: We will go next now to Chris Jon Woronka at Deutsche Bank.

Chris Jon Woronka: Hey, guys. Good morning. Thanks for taking the questions. I was hoping to get a little bit more color on how you expect the Pavilion, new sports bar, patio complex at Opryland, how that is going to unfold over the next couple of years. And the question really is, is it meant to draw a little bit more shoulder periods and weekends in addition to being obviously a big amenity for groups, or your thoughts on whether that helps leisure in addition to group at Opryland?

Patrick Chaffin: Hey, Chris. This is Patrick. Good to hear from you. I would tell you that the sports bar is all about seat count. Gaylord Opryland is not able to accommodate the demand that it has for food and beverage. There are just not enough outlets in that hotel. And so we are adding, taking the best of what we have learned at Texan and Palms and Rockies. We are building the sports bar as far as the size and the capacity and then putting that events lawn right next to it, 12,000 square foot events lawn. You have an indoor and outdoor component, and we have added a whole lot of flexibility to it.

So you can sell one portion of it or you can sell the entire restaurant. It is a very flexible outlet, and so this is all about adding seat counts and giving additional buyout opportunities to groups who want to get their folks together. It is strategically located right outside of the convention center because we know that as folks are coming out of the convention center, they want to go with a group of folks that they have spent the whole day with and sit down and have a beer or a drink, watch a show, spend some time together.

And so we feel this is both a leisure opportunity for us when we are in the off season for group, but primarily a group opportunity for buyouts and just capturing more seats, more demand in-house for Opryland because it just does not have the seats necessary to support demand.

Colin V. Reed: And when we have done this before, this is not our first rodeo. We have done this before in other hotels, and the returns on investment have been spectacular. Spectacular. It is just that we have not had one of these in this particular hotel, which is really, candidly, the most successful convention resort in the United States of America. This year, that hotel will push $200 million of EBITDA out of it. I know we do not break it down in our guidance, but there is not another hotel like this in America. And so we believe because of the volume of consumers in this hotel, both group and leisure, the returns on investment here will be very encouraging.

Mark Fioravanti: And hey, Chris. This is the first outlet of a multiyear kind of food and beverage refresh and expansion at Opryland. It is, to Patrick’s point, to increase the seat count to capture demand that is there that we are not monetizing, and it is also to raise the level of food and beverage experience in that hotel as we attract more and more premium corporate customers to that property.

Patrick Chaffin: And I would tell you, both with what is happening in the meeting space renovations and the new expansion as well as the sports bar, site visits to this property are revealing a lot of excitement for meeting planners who are starting to lay eyes on this. It has all been a rendering and a promise for the past couple of years. Now they are seeing it come to fruition. And there is a lot of excitement and a lot of energy to get booked into these spaces.

Jennifer L. Hutcheson: I have to move to one question.

Chris Jon Woronka: Oh, okay. Thanks, guys. A lot of great color there. Appreciate that. Just as a follow-up, and this goes back to the entertainment, the OEG, which I agree you guys have done a great job of building over the years. Maybe call it a strategic question or remark. Are there any impediments to franchising potentially one of those brands? You have Category 10. You have Ole Red either. Understand the REIT framework, but I think you probably have some room within that if this was something you wanted to do. So any thoughts on whether that is being considered?

Colin V. Reed: Well, it is very interesting you raised that question. You know, the music of this city, when you look at what is happening in markets like the United Kingdom, you look at, you know, throughout Northern Europe, France, Holland, Belgium. You know, Luke Combs will go over and play Wembley Stadium in July. Three nights, sell out Wembley Stadium, 80,000 people a night. You will go to Ireland playing Slane Castle, 80,000 people there. Goes to Murrayfield in Scotland, plays that stadium, sold out already. That will happen in July. And so the demand for this music overseas is very, very, very high, very strong.

And I think our view is the opportunity to expand the brands that we have built with these high iconic artists are really, really good. But I think we would like to, if we do it overseas, we would want to find a partner that does it on our behalf so we do not have to set up shop in these countries. But the answer is yes. It is a big opportunity and it is a bigger opportunity because of the popularity of what is happening to the product of this city on a global basis.

Chris Jon Woronka: Okay. Very good. Thanks, guys. Appreciate it.

Operator: Thank you. We will go next now to Ari Klein with BMO Capital Markets.

Ari Klein: Thanks, and good morning. I was hoping to get a little bit more color on the total RevPAR guide for 2026. You know, it looks like in 2025, RevPAR and total RevPAR kind of grew similarly. And in 2026, you have the benefit of a higher corporate group mix component. Why would we not expect total RevPAR growth to outperform RevPAR growth this year?

Jennifer L. Hutcheson: Yeah. Some of that is just the law of numbers, Ari, with a bigger base on TrevPAR than it is to RevPAR. Patrick Chaffin mentioned earlier that it is about a three-point swing, and corporate mix does tend to, as you know, outperform outside the room. But we also can get good performance from premium association and non-corporate groups as well. We saw that play out favorably in 2025 as well. So I think those are the factors to think about when you think about the relative room revenue RevPAR to TrevPAR outlook for 2026.

Ari Klein: Okay. Thanks for that. And then, Colin, you mentioned the potential rotational benefits with JWDR in a new market. Recognizing that it is still fairly early, what are some of the early trends you have been seeing on that front? Thank you.

Mark Fioravanti: You repeat that first part of the question?

Ari Klein: Just in terms of the rotational benefit with JWDR and having a new market to offer, fully recognize that it is still early, but just curious what some of the early trends you are seeing there from a rotational element standpoint?

Mark Fioravanti: Yeah. So with Desert Ridge and Hill Country both in the family now, we are, you know, we talked about this in the last quarterly call that we had hired a couple of positions that would focus just on that multiyear rotational business, moving them back and forth between the JWs and then JW to the Gaylords. And I would tell you that we have had some good success. We have only had about one quarter having those positions in place, but we booked about 22,000 multiyear room nights that were manufactured just as a result of that JW relationship of the two hotels being able to push back and forth to each other or over to the Gaylord.

So, we continue to believe that there is upside here, and we will continue to push that really hard.

Colin V. Reed: And, de facto in what you have said, we have aligned the sales. So just talk a little bit about that, will you?

Patrick Chaffin: Yeah. So, you know, we have a really strong sales team on the Gaylord side of the house. And we have added resources to ensure that there is more communication and more synergy between the JWs and the Gaylords and that we are taking all the learnings from creating multiyear rotational business across the Gaylords and applying that to the JWs, and that is what we are starting to see gain some traction.

Mark Fioravanti: Thank you. Thank you.

Operator: We will go next now to Daniel Brian Politzer with JPMorgan.

Daniel Brian Politzer: Hey, good morning, everyone. Thanks for taking my questions. First, I wanted to touch on the leisure. Obviously, your guidance reflects a flattish outlook there. Can you maybe talk about what you are seeing across your portfolio? Specifically, what is embedded in your outlook for Nashville, just given that was a bit of a headwind in 2025 on the leisure side?

Patrick Chaffin: Yeah. So as it relates specifically to Nashville, Gaylord Opryland has a really solid book of business on the books going into this year. They are in a better position than they were last year. So, we see really kind of more flattish because some of that group demand is taking up some of the, pushing out some of the leisure opportunities. But this market has sustained a lot of supply increase, but we have held our own and increased our RevPAR penetration, and we see that continuing as we move into 2026.

Daniel Brian Politzer: Got it. Thanks. And then just for my follow-up, I think it was you, Colin, that mentioned the 2027 guidance that you laid out back in January 2024. I mean, sounds like you feel very comfortable with the target there. We will get an update later in the year. But just to clarify, when you talk about the level of comfort there, does that now include Desert Ridge which obviously you acquired?

Mark Fioravanti: Yeah. There are some what I would say, kind of ins and outs in terms of our assumptions. To your point, we did not assume Desert Ridge when we made those projections in 2024, but we assumed that we would have our rooms addition open in the Rockies. And so if you kind of trade one property out for the other, we remain well within that guidance range. And I would tell you that depending on whether you include Desert Ridge or whether you leave it out, you are in the guidance range. It is just a question of where you are at in the guidance range.

Daniel Brian Politzer: Got it. That makes sense. Thanks so much.

Operator: Thank you. We will go next now to Rich Hightower with Barclays.

Rich Hightower: Hey. Good morning, guys. Thanks for taking the question here. As we think about the ranges within the variance or guidance parameters, to hit the high end from where we sit today, let us say, of EBITDA or FFO, is it going to be revenue driven to get there? Is it going to be expense driven? I know you said there is an embedded expense growth assumption of around 2.5%. But walk us through maybe the different flex points that would bring you to one end versus the other.

Jennifer L. Hutcheson: Yeah. On the top line, I think we have said it in various ways, but it is going to come down to where group lands. And all the components that Mark mentioned in his prepared remarks and in some of the Q&A, we have referenced how attrition and cancellations play out, how do meeting volumes respond to meeting planner sentiment in response to what policy changes may come out of Washington and how that affects the macro. So it is largely on the group side, I think, where we can see driving a lot of where we land within the range of outcomes, particularly on that RevPAR range.

From an expense standpoint, the midpoint of our guide assumes that we are a little shy of 3% of operating expense growth. So that feels pretty manageable at this point. I do not think that there are big drivers, I think, on the operating expense side that are going to move it. It is going to be demand driven.

Mark Fioravanti: Yeah.

Rich Hightower: Okay. Very helpful. And then I guess maybe a slightly bigger picture question. But you did Desert Ridge last year. It sounds like that is folding into the portfolio successfully. And as you think about the transaction market more broadly, there might be one or two assets coming to market this year. It is not a lot, but there might be something in there that might fit within what you guys are trying to do. So talk about maybe your appetite for doing another deal in line with maybe the size of a Desert Ridge, balance sheet capacity, how much could we do there, and what is the appetite, if any?

Mark Fioravanti: Yeah. Look, I would tell you that we certainly have the balance sheet capacity to do a transaction. We are in the process right now of kicking off some renovation and some enhancements at Hill Country and digesting Desert Ridge. So we are very focused on those two properties. If an asset came to market that checks all of our strategic boxes in terms of the quality of the product, the market, the fact that it is group oriented, it has the leisure and the leisure components, and it is priced appropriately, it is certainly something we would look at and we have the capacity to do it.

But the reality of it is that when we look across our current portfolio and the opportunities we have to reinvest incremental capital in very, very high rates of return, that is a very, very attractive alternative to us. So, for us to add a hotel, it needs to be a bull’s-eye for us. We would not look at marginal deals.

Colin V. Reed: Yeah. So, Rich, just to give you a little bit more color, these two hotels that we acquired over the last two years are hotels that we had earmarked to purchase, I want to say, ten years ago. We have been looking at these hotels every single year, and I do not think that there is another hotel that we had the same appetite for as those two. So as Mark said, it would have to be something extraordinarily special. But the great news for us is we have tremendous opportunity to grow. We can grow the ones that we own. I mean, six of these seven that we own, we would consider expanding.

And then we have an entertainment business that is growing like a weed. And so the growth characteristics of the company are great. We do not have to go to the market and go buy some fancy hotel in a market that, you know, really over time will not create the value that the existing portfolio will.

Rich Hightower: Makes a ton of sense. Thank you.

Operator: We will go next now to Shaun Kelley with Bank of America.

Shaun Kelley: Hey, good morning, everyone. Thank you for taking my question. For Colin or whoever the right person is, I think there is a proposal out there for a potential sphere or a smaller version of it in or around the National Harbor complex. I am just wondering if you have explored that or could talk a little bit about that and what potential for that might be, especially given how transformative it has been for certain surrounding hotels in Las Vegas? Thanks.

Colin V. Reed: Well, I think there has been some chatter in the market about the developer of National Harbor, the Peterson Company. Yeah, I think I read this, partnering with the Sphere organization to do something like that. And if it did, it would be great for National Harbor. And so the answer is we would encourage them, the Peterson Company, to do it. But the reality is the spheres are very expensive. You know, you cannot build one of these things probably under a billion dollars, unless it is a real small sphere. And so the issue for us is that we like projects that generate 12%, 14%, 15% rates of return. We would be a cheerleader in Washington.

Mark Fioravanti: Yeah. And at the right time, this is probably two to three years off. But at the right time, we would reach out and partner with that organization to create packages and opportunities for us with our hotel and the sphere to work together in bringing folks in and giving them overnight visitation into our hotel.

Colin V. Reed: The cheerleader.

Shaun Kelley: Got it. Great. Thank you for that. And then back in the prepared remarks, there was a mention around working with Marriott on efficiency. And obviously, I think that was in the context of the margin profile that you are looking for this year’s guide. But could you just talk a little bit more broadly about initiatives there, what you have been able to accomplish and anything they are doing on the charge-out rates kind of following the credit card transactions that they are working on and just sort of how your fee structure with them is evolving? Thanks.

Patrick Chaffin: I would tell you our focus has primarily been, we spent about six to seven months of 2025 working with them on procurement as well as third-party vendor contracts, really going back on some of our largest third-party contracts and breaking them down, looking at alternative vendor sourcing and really pushing folks to get the most aggressive and efficient contract in place. Same thing on the procurement side. There have been some changes with Avendra and other outside vendors that Marriott uses on procurement. And we are really pleased with the results of that. On the credit card, we have been told that we stand to potentially benefit. That is not something that Marriott gives a lot of insight onto.

And that is within the management agreement, that is something they keep a little closer to the chest. But we understand it is a benefit for the system, and we wait to see what that will be.

Shaun Kelley: Great. Thank you.

Operator: Thank you. We will go next now to John DeCree of CBRE.

John DeCree: Hi. Thanks for taking my question. I think most have been answered, but I think I heard a comment about government business. I wanted to circle back to if I heard correctly. Was it 0.4% of your bookings for this year so far? And then the follow-up, are there any other sectors that your group business might be indexed to? A lot of us are kind of focusing on the technology sector, etcetera. Is there anything that you would call out that you would have more exposure to than another sector?

Patrick Chaffin: Yeah. So the comment I made earlier was if you look at the same store, what we booked in the fourth quarter, government accounted for just about 0.4% of the production. And, similarly, on the books, government room nights as of January 1 stood at about 0.4% of our total group room nights on the books. So very small exposure there as we have tried to pivot away from that given some of the challenges there that we have seen over the past year or so. Again, as a reminder, we have less than 5% of our business in any one sector. We are very well diversified as far as sources of our group business.

We have been leaning into West Coast, tech and fintech to try and grow that business that we see opportunity there. So, limiting where we see some contraction on the government side and really pursuing trying to grow our West Coast and fintech exposure.

John DeCree: Great. That is really helpful. I appreciate the color. Thank you.

Operator: Thank you. We will go next now to Jay Kornreich of Cantor Fitzgerald.

Jay Kornreich: Hey, thanks. Good morning. Just one for me. You mentioned seeing positive momentum with meeting planners recently. And I was just curious as you look at the out years such as 2027 and 2028, which have more of the benefit from completed CapEx projects, can you comment just as to how room rate and overall bookings are trending at this point?

Patrick Chaffin: Yeah. You know, we have talked about 2026 is in a great position. 2027 is in a good position. And as you look out beyond, we are very encouraged with what the sales team has been able to do. We have pivoted our value proposition with all these, and the sales team has been able to deliver on the rate side. Obviously, rate is more sticky. It is going to stay with us once it is booked. So as we look out into the future years, we continue to see really solid growth as far as what we already have on the books. And rate is the major driver of that.

Colin V. Reed: Yeah. 2028 rate and beyond is up over 5%.

Mark Fioravanti: Yeah. We are kind of holding that mid-single-digit rate growth for 2028, 2029, etcetera.

Jay Kornreich: Okay. Great. Appreciate it. Thank you.

Operator: Thank you. We will go next now to Chris Darling of Green Street.

Chris Darling: Hey. Thanks. Good morning. Colin, in the prepared remarks, I think you mentioned that the same-store hospitality portfolio RevPAR index share is effectively at the highest point it has ever been. Curious if you could share what that figure looks like. And then as you look out forward, and it probably speaks to some of the prior questions, but what is your level of confidence in being able to take further share over time? I always wonder if there is sort of a natural upper bound in your ability to push price relative to your concept.

Colin V. Reed: Let me talk big picture, and then Patrick will give you the detail. What we have tried to do over the years that have gone by is to create a business, a hotel business, that has relative sustainability to it compared to the organizations we compete with. And we do it through a number of pillars. One, the physical product of the hotels has got to be world class. And we have, I think, demonstrated over the last years our desire to continue to improve the quality of the assets, each asset in the portfolio.

The second part of it is the service levels, and the way we sit on Marriott in terms of customer satisfaction and the work we do directly going to the meeting planner, speaking directly to the meeting planner, our organization, not through Marriott, speaking directly to the meeting planner and understanding the level of service execution, and we keep growing that. And then the third part of it is these convention goers, when they go to a market, they want to go to markets where they can have fun over three, four days. And so the constant improvement of what I will call the fun side of the stay is something that we have just continued to focus on.

This is why we are spending a lot of money on things like pool complexes, sports bars, improving the quality of the restaurants, music in these hotels. And then it is just the knowledge of the meeting planner itself and exactly what they want. And it is a combination of these things that build this sort of sustainability, this business that is continuing to get more and more share. And this is one of the things that I feel very, very strongly about. You know, we go through these periods where the meeting planner switches off, the meeting planner switches on. We have an economic meltdown. We have two or three years of economic growth.

But, you know, what we are interested in is managing through that noise. We have such a small share of this industry, and we are continuing to take out the customers that we do not want, bring in customers that we do want, the higher-rated business, and building just a sustainable business here, and that is showing up in these RevPAR indexes. So, Patrick, that is the precursor.

Patrick Chaffin: So to Colin’s point, fourth quarter, we delivered a RevPAR index on the same-store side of 143% versus the comp set. That is a 1,200 basis point improvement year-over-year. So really, really solid performance by the hotels and stealing share. Full year, our RevPAR for the same store against the comp set finished at 127%. That is an increase of 610 bps year-over-year, and even an increase of 410 bps versus 2023. So to Colin’s point, we continue to invest to enhance the value proposition.

We increase our distribution that allows us to capture more multiyear rotational business and a greater share of each individual meeting planner’s total book of meetings business, and that is how we will continue to steal share.

Mark Fioravanti: And that is why there is no upper bound, because we continue to evolve the product and continue to change the value proposition. So we do not view it as if there is an upper bound on this. We can continue to drive more and more share and take share away from others who are not invested.

Colin V. Reed: Yeah.

Chris Darling: Alright. I appreciate all the detail. Thank you.

Colin V. Reed: Thanks. Thank you.

Operator: Thank you. We will go next now to Steven Grambling of Morgan Stanley.

Steven Grambling: Hey. Thank you for sneaking me in. Maybe a big picture question, but how do you think about the impact of AI on the hospitality business as we think about demand drivers and/or the makeup of what meetings may look like, plus any opportunities you are seeing now from an operational standpoint for potential margin uplift? Thanks.

Colin V. Reed: Steven, this is a question that we have spent a lot of time as a company asking ourselves and asking Marriott, and frankly discussing it with our board. We had a long conversation about this last week at our board level. And so, Patrick, do you want to just give Steven a broad outline of the engagement that we have made with Marriott and the areas that we see AI really helping in terms of efficiency.

Patrick Chaffin: Yeah. I would say that our primary three areas of focus are going to be on the sales transaction and efficiency around that. Second, around revenue management with dynamic pricing and just understanding the competition and enhancing our capabilities there. And then finally, which may get overlooked, but it is a massive opportunity, you know, labor is over 60% of our total cost. And so the ability to use, to move away from Microsoft Excel spreadsheets, to move away from some of the current systems that are pretty antiquated in the light of the AI revolution, and move to AI-capable labor management tools, we are really focused on those three areas.

And we are, as owners, putting a lot of pressure on Marriott. Marriott is working to understand exactly what the cadence and pace of their investment and progress would be here. And so it is an ongoing discussion, but those are three areas we are focused on.

Mark Fioravanti: The interesting thing about our business, both the hotel business and the entertainment business, the live entertainment business, is that they are both businesses that are almost a kind of an anti-AI play in that we are going to reach a point where unless you are in the room with someone, you do not know whether it is real or whether it is AI-generated. And so much like the pandemic became a tailwind for both of our businesses, I would argue that I think AI may be a tailwind as well because people are going to value, one, going to have more time, and, two, they are going to value being face-to-face with other human beings in the same room.

Colin V. Reed: I agree with that, Mark, 100%. And so, anyway, Steven, I hopefully that helped you understand that it is a major focus for us as a company and we are going to continue to work with our friends at Marriott to make sure that we are an early adopter and that the efficiency of the company just improves here over the next one to two years.

Steven Grambling: That is great. Thank you so much.

Colin V. Reed: Thank you. Bo, I think that is everybody in the queue. So we would like to thank everyone for their participation this morning, and upward and onward.

Operator: Earnings conference call. Again, thanks so much for joining us, everyone. We wish you all a great day. Goodbye.

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