Ryman Hospitality Properties, Inc. Announces Plans to Acquire Block 21 in Austin, Texas From Stratus Properties Inc. for $275...
December 09 2019 - 4:08PM
Ryman Hospitality Properties, Inc. (NYSE: RHP) (the Company)
announced today it has reached an agreement with Stratus Properties
Inc. (NASDAQ: STRS) to acquire Block 21, a mixed-use entertainment,
lodging, office and retail complex located in the heart of downtown
Austin, Texas, for $275 million, which includes the assumption of
approximately $141 million of existing mortgage debt.
Completed in 2010 and located on an entire city
block in Austin’s 2nd Street District, Block 21 is home to the
iconic ACL Live at the Moody Theater (ACL Live), a 2,750-seat
state-of-the-art entertainment venue that serves as the filming
location for the famed Austin City Limits television series. The
Block 21 complex also includes the 251-room W Austin Hotel, the
350-seat 3TEN at ACL Live club and approximately 53,000 square feet
of other Class A commercial space.
Colin Reed, Chairman and Chief Executive Officer
of Ryman Hospitality Properties, said, “Block 21 is a one-of-a-kind
asset anchored by a world-class theater in one of the most vibrant
and culturally significant music destinations in the country. We
believe ACL Live, along with the entire Block 21 complex, is a
natural complement to our portfolio of iconic entertainment and
media assets. Through this acquisition, we have the opportunity to
build a relationship with the millions of music lovers who visit
Austin each year that will allow us to cross-promote our brands to
a new, but related customer. We also believe there are significant
opportunities to create content that will position Austin and Block
21 as a must-visit destination for country lifestyle consumers
through our new TV platform, Circle, which is set to launch in
early 2020.”
William H. Armstrong III, Chairman of the Board,
President and Chief Executive Officer of Stratus, said, “Ryman
Hospitality Properties is a great company that understands and
respects the strong connection that exists between Austin and its
music scene. We think Ryman Hospitality Properties’ expertise in
both hospitality and live entertainment, plus their demonstrated
stewardship of the iconic Ryman Auditorium and Grand Ole Opry makes
them the ideal company to usher Block 21 and ACL Live into their
next decade.”
Commonly referred to as the live music capital
of the world, Austin welcomes more than 27 million visitors a year
who travel to the market to experience its festivals, unique music
venues, culinary scene, and nightlife. Austin has also enjoyed
strong transient hotel demand and robust population growth over the
past decade. Large corporate relocations and expansions within the
market have led to low office and retail space vacancies,
particularly in the downtown districts.
Reed continued, “The Stratus Properties team has
done a remarkable job supporting their vision for Block 21 with
high-quality brands and relationships, like Marriott and Austin
City Limits. We look forward to building upon the tremendous
momentum they have created with Block 21 and to continuing the
close relationship between Austin City Limits and ACL Live at the
Moody Theater for many years to come. With our team’s expertise in
hospitality, media and entertainment, we believe we are in a unique
position to, over time, cement the entire Block 21 complex as a
music-centric entertainment and lodging hub with ACL Live at its
center.”
The acquisition is expected to close in the
first quarter of 2020, subject to customary closing conditions
including, but not limited to, consent to the Company’s assumption
of the existing mortgage loan by the loan servicer and the consent
of the property manager, an affiliate of Marriott, to the Company’s
assignment and assumption of the existing management agreement.
A Note to Ryman Hospitality Properties,
Inc. Shareholders: For additional information regarding
this acquisition, visit ir.rymanhp.com and click on Presentations
and Transcripts. Please note that our website is provided as an
inactive textual reference and the information on our website is
not incorporated by reference in this release.
About Ryman Hospitality Properties,
Inc. Ryman Hospitality Properties, Inc. (NYSE: RHP) is a
REIT for federal income tax purposes, specializing in
group-oriented, destination hotel assets in urban and resort
markets. The Company’s owned assets include a network of four
upscale, meetings-focused resorts totaling 8,114 rooms that are
managed by lodging operator Marriott International, Inc. under the
Gaylord Hotels brand. The Company is a joint venture owner of the
1,501-room Gaylord Rockies Resort & Convention Center, which is
also managed by Marriott International, Inc. under the Gaylord
Hotels brand. Other owned assets managed by Marriott International,
Inc. include Gaylord Springs Golf Links, the Wildhorse Saloon, the
General Jackson Showboat, The Inn at Opryland, a 303-room overflow
hotel adjacent to Gaylord Opryland and AC Hotel Washington, DC at
National Harbor, a 192-room hotel near Gaylord National. The
Company also owns and operates media and entertainment assets,
including the Grand Ole Opry (opry.com), the legendary weekly
showcase of country music’s finest performers for over 90 years;
the Ryman Auditorium, the storied former home of the Grand Ole Opry
located in downtown Nashville; 650 AM WSM, the Opry’s radio home;
and Ole Red, a country lifestyle and entertainment brand. For
additional information about Ryman Hospitality Properties, visit
www.rymanhp.com.
Cautionary Note Regarding
Forward-Looking StatementsThis press release contains
statements as to the Company’s beliefs and expectations of the
outcome of future events that are forward-looking statements as
defined in the Private Securities Litigation Reform Act of 1995.
You can identify these statements by the fact that they do not
relate strictly to historical or current facts. Examples of these
statements include, but are not limited to, statements regarding
the pending acquisition of Block 21, and the Company’s expectations
for Block 21 upon the closing of the transaction. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include the risks and uncertainties
associated with the pending Block 21 acquisition, including, but
not limited to, the occurrence of any event, change or other
circumstance that could delay the closing of the Block 21
acquisition, or result in the termination of the agreement for the
Block 21 acquisition; adverse effects on the Company’s common stock
because of the failure to complete the Block 21 acquisition;
and the Company’s ability to borrow funds pursuant to its
credit agreement. Other factors that could cause results to differ
are described in the filings made from time to time by the Company
with the U.S. Securities and Exchange Commission and include the
risk factors and other risks and uncertainties described in the
Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2018 and its Quarterly Reports on Form 10-Q and
subsequent filings. Except as required by law, the Company does not
undertake any obligation to release publicly any revisions to
forward-looking statements made by it to reflect events or
circumstances occurring after the date hereof or the occurrence of
unanticipated events.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President & Chief Financial Officer |
Shannon Sullivan, Vice President Corporate and Brand
Communications |
Ryman Hospitality Properties, Inc. |
Ryman Hospitality Properties, Inc. |
(615) 316-6588 |
(615) 316-6725 |
mfioravanti@rymanhp.com |
ssullivan@rymanhp.com |
~or~ |
~or~ |
Todd Siefert, Vice President Corporate Finance & Treasurer |
Robert Winters |
Ryman Hospitality Properties, Inc. |
Alpha IR Group |
(615) 316-6344 |
(929) 266-6315 |
tsiefert@rymanhp.com |
robert.winters@alpha-ir.com |
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