Ryman Hospitality Moves Forward with JW Marriott Acquisition
Nashville, Tennessee - Ryman Hospitality Properties, Inc. (NYSE: RHP), a leading lodging real estate investment trust (REIT), has announced an exciting development in its expansion strategy. The Company has entered into a definitive agreement to acquire the JW Marriott Phoenix Desert Ridge Resort & Spa for a notable price of $865 million. This acquisition aligns with Ryman's vision to enhance its portfolio of group-oriented and destination hotel assets.
Strategic Importance of the Acquisition
Mark Fioravanti, President and CEO of Ryman Hospitality, expressed enthusiasm for this acquisition, highlighting the JW Marriott Desert Ridge as a key target for many years. The resort’s strategic location in a highly rated meetings market and its vast array of amenities make it an invaluable addition to Ryman's existing portfolio.
Synergies and Future Potential
Fioravanti noted that the acquisition paves the way for enhanced operating synergies, particularly by aligning resources with Marriott International. The operational efficiency expected from this partnership will not only benefit the existing properties but also improve the overall value proposition for customers, creating long-term benefits for shareholders.
A Closer Look at JW Marriott Desert Ridge
The JW Marriott Desert Ridge is situated on around 402 acres of the scenic Sonoran Desert. This impressive property is recognized as one of the largest hotels in the greater Phoenix/Scottsdale area, featuring 950 guest rooms, including luxurious suites, along with approximately 243,000 square feet of versatile meeting space.
A Wealth of Amenities
Guests at the JW Marriott Desert Ridge will enjoy a multitude of world-class amenities that include a 28,000-square-foot Revive Spa, seven diverse dining options, and a remarkable AquaRidge water amenity that features thrilling water slides and a relaxing lazy river. Additionally, there are two championship golf courses designed by Nick Faldo and Arnold Palmer, making it a paradise for leisure and business travelers alike.
The Phoenix Market and Its Opportunities
Phoenix stands out as one of the top 10 meetings markets in North America, bolstered by strong demand for leisure activities. The city is not only the fifth most populous in the nation but is also home to the busy Phoenix-Sky Harbor Airport, which is undergoing plans for significant expansion. This positions the JW Marriott Desert Ridge strategically to capitalize on continued growth in the area.
Closing the Deal
Ryman Hospitality anticipates that the closing of the JW Marriott Desert Ridge acquisition will occur in the upcoming quarters, pending standard closing conditions. The Company views this acquisition as an accretive move that will contribute positively to its adjusted funds from operations (Adjusted FFO) per share starting in the year following the acquisition.
About Ryman Hospitality Properties
Ryman Hospitality Properties, Inc. (NYSE: RHP) specializes in high-end convention center resorts and entertainment experiences, owning iconic properties such as the Gaylord Opryland Resort and others across the country. The Company operates a total of 11,414 rooms and offers more than 3 million square feet of indoor and outdoor meeting space, making it a leader in the hospitality sector.
Frequently Asked Questions
1. What is the acquisition amount for the JW Marriott Desert Ridge?
The acquisition amount is $865 million.
2. When is Ryman Hospitality expected to close the deal?
The closing is expected in the second or third quarter of the year.
3. What strategic advantages does this acquisition provide?
The acquisition allows Ryman to enhance its portfolio and improve operating synergies through its partnership with Marriott International.
4. What amenities are offered at the JW Marriott Desert Ridge?
The resort boasts a Revive Spa, numerous dining options, extensive meeting space, and outdoor leisure amenities such as golf courses and water attractions.
5. How does Ryman Hospitality's portfolio benefit from this acquisition?
The acquisition is expected to create long-term value for both customers and shareholders by expanding market reach in a competitive area.
