- Full-Year Financial Outperformance: Exceeded guidance ranges with full-year results surpassing midpoints and AFFO/AFFO per share above the high end.
- Entertainment Segment Growth: Delivered 12% fourth-quarter revenue growth and 13% adjusted EBITDAre growth, driven by strong holiday programming.
- Gaylord Opryland Expansion: 40% of existing carpeting and meeting space refreshed, with a 100,000 sq ft expansion nearing completion.
- Strategic Acquisitions: Acquired 14,000-seat CCNB amphitheater in Simpsonville, SC, and JW Desert Ridge in a top 10 meetings market.
- Category 10 Brand Expansion: Added Las Vegas (Q4 2026) and Universal City Walk locations, expanding the brand’s footprint and entertainment offerings.
Financial Performance
The company's financial performance was impressive, with a significant beat on EPS and revenue. The strong results were driven by the success of the Entertainment segment, as well as the hospitality segment, which saw same-store group rooms revenue on the books for 2026 increase by approximately 6% compared to the same time last year. As Mark Fioravanti, President and CEO, noted, "the same-store hospitality segment delivered the highest total revenue of any quarter and the highest adjusted EBITDAre of any fourth quarter."
Segment Performance
The Entertainment segment was a key driver of the company's strong performance, with revenue growth of nearly 12% and adjusted EBITDAre growth of nearly 13%. The segment's success was driven by strong holiday programming reception and better-than-expected volumes in downtown Nashville entertainment venues. The hospitality segment also performed well, with same-store total revenue reaching its highest level ever in the fourth quarter.
Valuation
Using the current valuation metrics, the company's P/E Ratio stands at 26.12, indicating that the stock may be slightly overvalued. However, the Dividend Yield of 4.52% is attractive, providing a relatively stable source of return. Additionally, the Net Debt / EBITDA ratio of 4.9 suggests that the company's leverage is manageable. Analysts estimate next year's revenue growth at 4.8%, which may provide further support for the stock.
Outlook
The company's outlook for 2026 is positive, with initial guidance ranges indicating a same-store hospitality business RevPAR growth of 2.5% and a midpoint of guidance range for same-store hospitality adjusted EBITDAre. The company is also expecting a shift in concert and concert count across the portfolio, with a focus on amphitheaters and festivals in Q2 and Q3. As Colin Reed, Executive Chairman, noted, "the earnings power of this business is expected to grow over the next 3-5 years, with opportunities for expansion and development."