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Ryman Hospitality Properties, Inc. Reports First Quarter 2013 Results

  Ryman Hospitality Properties, Inc. Reports First Quarter 2013 Results

 - Gross Advance Group Bookings for all Future Periods Increased 57.9 Percent
                          Over First Quarter 2012 -
    - Company Refinances Debt and Executes Against Share Repurchase Plan -

Business Wire

NASHVILLE, Tenn. -- May 07, 2013

Ryman Hospitality Properties, Inc. (NYSE: RHP), a lodging real estate
investment trust ("REIT") specializing in group-oriented, destination hotel
assets in urban and resort markets, today reported financial results for the
first quarter ended March 31, 2013.

The end of the first quarter marked the completion of the Gaylord Hotels
conversion to Marriott’s systems, allowing the hotels to start to benefit from
the many anticipated synergies. Colin V. Reed, chairman, chief executive
officer and president of Ryman Hospitality Properties, stated, “Despite an
unusual confluence of events during the quarter that adversely impacted the
group sector, including government related attrition and cancellations, the
timing of the Easter holiday, and negative group mix shift year-over-year, we
are seeing encouraging signs that the benefits of the Marriott affiliation are
beginning to emerge. Our hotels produced record first quarter forward group
bookings, record first quarter in-the-year, for-the-year group bookings, and
record first quarter transient room night production. All three were material
increases year-over-year. As the Marriott systems are fully implemented and
anticipated costs savings begin to be realized, we continue to believe that
our previously discussed cost synergies projection of $13 million to $16
million at the property level for 2013 will be accomplished. Furthermore, our
projected corporate cost savings are being realized as expected, which can be
seen in our first quarter numbers.”

First Quarter 2013 Results (as compared to First Quarter 2012):

  *Gross advanced group bookings for all future periods increased 57.9% to
    587,682 room nights (a record first quarter bookings production); Net
    advance group bookings for all future periods increased 48.4% to 454,857
    room nights
  *Gross advanced group bookings of in-the-year, for-the-year room nights
    increased 42.0% over the same period last year (a record first quarter
    bookings production)
  *Transient room night bookings, aided by the Marriott Rewards program and
    transient delivery channels, increased by 18,567 room nights (a record
    first quarter bookings production) and transient Average Daily Rate, or
    ADR, grew by $17.05
  *Cancellations in-the-year, for-the-year included 30,100 group rooms
    compared to 8,817 group rooms in the first quarter 2012; Cancellations
    in-the-quarter, for-the-quarter included 16,592 group rooms compared to
    1,212 group rooms in the same period in 2012
  *Attrition for groups that traveled in the first quarter of 2013 was 8.3%
    of the agreed-upon room block compared to 4.5% in the same period in 2012;
    Attrition and cancellation fees collected during the quarter were $1.8
    million compared to $1.2 million in the same period in 2012
  *Hospitality Revenue Per Available Room, or RevPAR, decreased 1.2% to
    $117.33
  *Hospitality Total RevPAR decreased 5.3% to $287.56 compared to Hospitality
    Retail Adjusted Total RevPAR in the first quarter 2012, or a decrease of
    6.3% compared to unadjusted Total RevPAR in the first quarter 2012
  *Total Revenue decreased 6.2% to $222.1 million compared to Retail Adjusted
    Revenue in the first quarter 2012, or a decrease of 7.0% compared to
    unadjusted Total Revenue in the first quarter 2012
  *Hospitality Revenue decreased 6.4% to $209.6 million compared to
    Hospitality Retail Adjusted Revenue in the first quarter 2012, or a
    decrease of 7.3% compared to unadjusted Hospitality Revenue in the first
    quarter 2012
  *Net income was $53.8 million (including an income tax benefit of $66.3
    million primarily relating to the REIT conversion) compared to net income
    of $6.0 million in first quarter 2012
  *Adjusted EBITDA on a consolidated basis decreased 21.6% to $50.6 million
  *Hospitality Adjusted EBITDA decreased 26.1% to $54.7 million
  *Adjusted Funds from Operations, or Adjusted FFO, was $23.5 million while
    Adjusted FFO excluding REIT conversion costs was $34.9 million
  *Declared first quarter dividend of $0.50per share paid to stockholders on
    April 12, 2013
  *Repurchased $55.7 million of the Company’s common stock during the quarter
    against its $100 million repurchase plan

For our definitions of RevPAR, Total RevPAR, Adjusted EBITDA, Retail Adjusted
Revenue, Retail Adjusted Total RevPAR, and Adjusted FFO as well as a
reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net
Income, a reconciliation of the non-GAAP financial measure Retail Adjusted
Revenue to revenue, and a reconciliation of the non-GAAP financial measure
Adjusted FFO to Net Income, see “Retail Adjusted Revenue”, “Calculation of
RevPAR and Total RevPAR”, “Non-GAAP Financial Measures”, and “Supplemental
Financial Results” below.

Refinancing After Quarter End

  *Completed private placement of $350 million of 5% senior unsecured notes
    due 2021
  *Successfully refinanced and upsized credit facility to $1 billion from
    $925 million, improving pricing and extending the maturity to April 2017

Reed continued, “In addition, to give ourselves maximum balance sheet
flexibility and take advantage of historically low interest rates, after
quarter end, we completed the refinancing of the majority of our debt, which
provides us with a strong balance sheet and a tremendous amount of
flexibility. Finally, we announced a healthy planned 2013 dividend payout
anticipated to be approximately $2.00 per share, or $0.50 per quarter, which
we believe gives us one of the best dividend yields in the lodging REIT
sector.”

Hospitality

Property-level results and operating metrics for the first quarter of 2013 and
2012 are presented in greater detail below under “Supplemental Financial
Results.”

  *Gaylord Opryland occupancy increased 4.2 percentage points compared to the
    first quarter of 2012 to 70.4 percent, and RevPAR increased 5.9 percent to
    $110.76. In spite of a challenging comparison to first quarter last year,
    revenue at the property declined only 2.9 percent. The decline in revenue
    and Adjusted EBITDA from prior year was primarily related to a decrease in
    food and beverage spending as a result of a change in group mix, as the
    property experienced a shift from premium corporate and association groups
    toward less profitable SMERF (Social, Military, Educational, Religious,
    and Fraternal) groups and transient guests. This shift in business mix
    resulted in a reduction in outside-the-room spending by $3.4 million for
    the quarter.
  *Gaylord Palms occupancy declined 1.9 percentage points to 79.9 percent
    compared to the first quarter of 2012, and RevPAR decreased 4.7 percent to
    $142.47. The property experienced a significant shift in business mix
    during the quarter, as the property had over 24,000 fewer corporate and
    association room nights than the first quarter of 2012. This reduction in
    premium business was replaced by over 21,000 transient and SMERF group
    room nights that resulted in lower outside-the-room spending by $4.0
    million for the quarter.
  *Gaylord Texan occupancy decreased 1.2 percentage points compared to the
    first quarter of 2012 and RevPAR declined 3.2 percent. The property
    experienced a similar shift in business mix during the quarter, as the
    property had over 14,000 fewer corporate and association room nights than
    in the 2012 quarter. This reduction in premium business was replaced by
    over 11,000 transient and SMERF group room nights resulting in a reduction
    in outside-the-room spending by $2.9 million for the quarter.
  *Gaylord National occupancy decreased 9.1 percentage points compared to the
    first quarter of 2012, and RevPAR decreased 6.2 percent. Of the occupancy
    decline, 4.7 percentage points were attributable to cancellations of
    government groups during the quarter, as Federal budget sequestration
    issues continued to negatively weigh on the behavior of these groups and
    subsequently the performance of the property in the quarter. In
    particular, two government related groups cancelled on short notice during
    the quarter resulting in 6,758 fewer room nights. The impact of these
    cancellations and general effect of government sequestration impacted the
    property’s outside-the-room spending, which decreased by $4.3 million for
    the quarter.

Reed continued, “While we anticipated the shift in mix at our properties would
impact our first quarter performance, the challenges brought about by
government budget issues had a negative impact on Gaylord National. Given that
our properties traditionally rely on a mix of roughly 80 percent group and 20
percent transient business, the significant government group cancellations
were felt more acutely by our business than some competitors in the D.C. area
who focus more heavily on the transient segment and can thus reclaim more of
those lost room nights in the quarter.

“Looking at our properties as a whole, we were pleased that in spite of the
issues in D.C., occupancy and RevPAR were only slightly down compared to the
first quarter of last year, and ADR actually improved modestly. Our Total
RevPAR performance represented a decrease compared to last year, due to a
decline in corporate and association business partially offset by an increase
in SMERF and transient business. The negative impact of this shift away from
premium corporate and association business was felt in terms of
outside-the-room spending. However, these types of shifts tend to occur from
quarter-to-quarter, and based on the group and association business we have
secured for the remainder of the year, we are optimistic that this shift does
not reflect an ongoing trend.”

Gross advance group bookings set a record first quarter production level with
587,682 group room nights booked for all future periods. Gross group room
night production in-the year, for-the-year set a record first quarter
production level and reflect a 42.0% increase over the same period last year.
Additionally, transient room night production, a first quarter production
record, increased 18,567 room nights and transient ADR grew $17.05 compared to
the prior year quarter as the Marriott Rewards program began to gain traction
and the Marriott transient delivery channels continued to ramp for Gaylord
Hotels.

Reed continued, “Despite a potentially disruptive transition from the legacy
Gaylord Hotels’ sales system to the new Marriott sales system (CI/TY) during
February and March, the sales team did an outstanding job of not only
migrating over five million group room nights to the new system, but also
generating a record sales production quarter. Furthermore, 17% of first
quarter production resulted from new customers obtained through Marriott sales
channels, which we see as an encouraging sign.”

Opry and Attractions

Opry and Attractions segment revenue declined 2.6 percent to $12.5 million in
the first quarter of 2013 from $12.9 million in the prior-year quarter. The
segment’s Adjusted EBITDA declined 36.7 percent to $1.4 million in the first
quarter of 2013, from $2.2 million in the prior-year quarter. Due to the REIT
conversion, this segment shares a greater proportion of allocated expenses for
centralized services than in the past.

Corporate

Corporate and Other Adjusted EBITDA totaled a loss of $5.4 million in the
first quarter of 2013 compared to a loss of $11.5 million in the same period
last year. The reduction in costs at the Corporate level are directly related
to the transition of the Company from a C-Corp to a REIT and are in-line with
previously discussed estimated cost synergies.

REIT Conversion Costs

The Company has allocated all REIT conversion costs by operating segments and
reported these amounts separately as REIT conversion costs in the accompanying
financial information. During the first quarter of 2013, the Company incurred
$15.0 million of costs associated with this conversion. These costs include
employment and severance costs ($11.2 million), professional fees ($1.1
million), and various other transition costs ($2.7 million).

During the quarter, the Company recorded an income tax benefit of $66.3
million. This benefit was primarily due to the reversal of $137.4 million in
net deferred tax liabilities that are no longer necessary as a result of the
Company’s REIT conversion, partially offset by a valuation allowance of $76.1
million on the net deferred tax assets of the Company’s taxable REIT
subsidiaries, or TRSs.

Dividend Update

The Company paid its first quarterly cash dividend of$0.50per share of
common stock on April 12, 2013to stockholders of record onMarch 28, 2013. It
is the Company’s current plan to distribute total annual dividends of
approximately$2.00per share for 2013 in cash in equal quarterly payments in
April, July, October, and January, subject to the board’s future
determinations as to the amount of quarterly distributions and the timing
thereof.

Balance Sheet/Liquidity Update

As of March 31, 2013, the Company had total debt outstanding of $1,092.1
million and unrestricted cash of $44.8 million. At March 31, 2013, $171.0
million of borrowings were undrawn under the Company’s $925 million credit
facility, and the lending banks had issued $7.7 million in letters of credit,
which left $163.3 million of availability under the credit facility. On
January 17, 2013, the Company redeemed its remaining 6.75% senior notes at par
at a cost of $152.2 million, which was funded using borrowings under the
revolving credit line of the Company’s $925 million credit facility.

During the quarter, the Company announced a private placement of $350 million
aggregate principal amount of 5.00% senior notes due 2021 (the “Notes”), which
closed on April 3, 2013. The Notes are senior unsecured obligations of the
Company’s issuing subsidiaries and are guaranteed by the Company and all of
the Company’s subsidiaries that guarantee its senior credit facility.
Aggregate net proceeds from the sale of the notes were approximately $342
million, after deducting the initial purchasers’ discounts and commissions and
estimated offering expenses. The Company used substantially all of the net
proceeds of the offering to repay amounts outstanding under its revolving
credit facility.

In addition, the Company announced on April 18, 2013 that it successfully
refinanced its $925 million credit facility that was scheduled to mature in
August 2015. The increased and extended $1 billion credit facility will mature
in April2017 and is comprised of a $700million revolving credit line
($154million of which was drawn at close) and a fully funded $300million
term loan. The Company was able to secure favorable pricing on the facility as
the interest rate is LIBOR plus an applicable margin based on the Company’s
consolidated funded indebtedness to total asset value ratio, or the base rate
plus the applicable margin. The initial rate is set at LIBOR + 1.75%. The
extended facility reflects both a reduction in the term loan and an increase
in the revolving credit line, as well as improved pricing. The previous credit
facility was comprised of a $400million term loan and a $525million
revolving credit line. At April 30, 2013, $439.0 million of borrowings were
drawn under the Company’s $1 billion credit facility, and the issuing banks
had issued $7.7 million in letters of credit, which left $553.3 million of
availability under the credit facility.

During the quarter, the Company repurchased and cancelled approximately 1.3
million shares of its common stock for an aggregate purchase price of $55.7
million, which the Company funded using cash on hand and borrowings under the
revolving credit line of its credit facility.

Guidance Update:

The Company is reiterating its 2013 Guidance for Hospitality RevPAR,
Hospitality Total RevPAR, Adjusted EBITDA and Adjusted FFO, as originally
announced on February 15, 2013. However, due to higher than expected employee
transition and pension cost associated with the REIT conversion, the Company
is modifying its 2013 guidance for Adjusted FFO after REIT conversion costs as
outlined in the following table. In addition, the Company has updated the
estimated basic shares outstanding to reflect the recent share repurchase
activity.

                                                           
                  Original Guidance               Revised Guidance
                  Low             High            Low             High
                                                                  
Hospitality           3.0   %       6.0   %       3.0   %       6.0   %
RevPAR ^1
Hospitality
Total                   2.0   %         5.0   %         2.0   %         5.0   %
RevPAR ^1
                                                                  
Hospitality       $     278.0     $     288.0     $     278.0     $     288.0
Opry and                15.0            17.0            15.0            17.0
Attractions
Corporate               (24.0 )         (20.0 )         (24.0 )         (20.0 )
and Other
Gaylord
National             12.0        12.0        12.0        12.0  
Bonds ^2
Adjusted          $   281.0    $   297.0    $   281.0    $   297.0 
EBITDA
                                                                  
Adjusted          $     212.0     $     225.0     $     212.0     $     225.0
FFO ^3
REIT
conversion        $     13.0      $     12.0      $     19.0      $     18.0
costs (tax
effected)
Adjusted
FFO after
REIT              $     199.0     $     213.0     $     193.0     $     207.0
conversion
costs ^3
                                                                  
Adjusted
FFO per           $     4.03      $     4.27      $     4.09      $     4.34
Share ^3
Adjusted
FFO per
Share after       $     3.78      $     4.04      $     3.72      $     3.99
REIT
conversion
costs ^3
Estimated
Basic                   52.7            52.7            51.9            51.9
Shares
Outstanding
                                                                  

1.Hospitality RevPAR estimated annual increases are based on 2012 RevPAR of
    $123.36 (as adjusted to reflect a change in room counting methods that
    does not exclude renovation rooms from the calculation of rooms available,
    per Marriott room counting methods), and Hospitality Total RevPAR
    estimated annual increases are based on 2012 Retail Adjusted Total RevPAR
    of $305.30 (as adjusted to reflect the elimination from the first three
    quarters of 2012 of revenues from retail operation that were outsourced to
    a third-party retailer beginning in the fourth quarter of 2012, as well as
    Marriott room counting methods).
2.Interest income from Gaylord National bonds reported in hospitality
    segment results in 2013.
3.Adjusted FFO guidance includes a deduction for maintenance capital
    expenditures of $36.0 to $38.0 million.

For our definitions of RevPAR, Total RevPAR, Adjusted EBITDA, Retail Adjusted
Revenue, Retail Adjusted Total RevPAR, and Adjusted FFO as well as a
reconciliation of the non-GAAP financial measure Adjusted EBITDA to Net
Income, a reconciliation of the non-GAAP financial measure Retail Adjusted
Revenue to revenue, and a reconciliation of the non-GAAP financial measure
Adjusted FFO to Net Income, see “Retail Adjusted Revenue”, “Calculation of
RevPAR and Total RevPAR”, “Non-GAAP Financial Measures”, “Supplemental
Financial Results” and “Reconciliation of Forward-Looking Statements” below.

Reed continued, “When we originally announced our outlook for the year it was
with the understanding that our performance would strengthen as the year
progressed and we would begin to realize the revenue and cost synergies we
expected once the Marriott systems were fully implemented. With the successful
integration of our hotels on the Marriott platform, coupled with the strong
in-the-year, for-the-year group bookings and transient demand, we believe we
will end the year within our original guidance range other than for Adjusted
FFO after REIT conversion costs. Despite the challenges we experienced in the
first quarter, our hotel assets are heading in the right direction, our
corporate cost savings are being realized as expected, and we are seeing many
positive signs for the future. As a result, we are reiterating our guidance
for Hospitality RevPAR, Hospitality Total RevPAR, Adjusted EBITDA and Adjusted
FFO.”

Earnings Call information

Ryman Hospitality Properties will hold a conference call to discuss this
release today at 10:00 a.m. ET. Investors can listen to the conference call
over the Internet at www.rymanhp.com. To listen to the live call, please go to
the Investor Relations section of the website (Investor
Relations/Presentations, Earnings, and Webcasts) at least 15 minutes prior to
the call to register, download and install any necessary audio software. For
those who cannot listen to the live broadcast, a replay will be available
shortly after the call and will run for at least 30 days.

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 7,795 rooms that are managed by
world-class lodging operator 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 and The Inn at Opryland, a 303-room overflow hotel adjacent to
Gaylord Opryland. The Company also owns and operates a number of media and
entertainment assets, including the Grand Ole Opry (opry.com), the legendary
weekly showcase of country music’s finest performers for nearly 90 years; the
Ryman Auditorium, the storied former home of the Grand Ole Opry located in
downtown Nashville; and WSM-AM, the Opry’s radio home. For additional
information about Ryman Hospitality Properties, visit www.rymanhp.com.

Cautionary Note Regarding Forward-Looking Statements

This 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 future performance of our business,
the effect of the Company’s election of REIT status, the amount of REIT
conversion or other costs relating to the restructuring transactions,
anticipated cost synergies and revenue enhancements from the Marriott
relationship, the expected approach to making dividend payments, the board’s
ability to alter the dividend policy at any time, plans to engage in common
stock repurchase transactions and the timing and form of such transactions,
and other business or operational issues. 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 economic conditions affecting the hospitality business
generally, the geographic concentration of the Company’s hotel properties,
business levels at the Company’s hotels, the effect of the Company’s election
to be taxed as a REIT for federal income tax purposes effective for the year
ending December 31, 2013, the Company’s ability to remain qualified as a REIT,
the Company’s ability to execute its strategic goals as a REIT, the effects of
business disruption related to the Marriott management transition and the REIT
conversion, the Company’s ability to realize cost savings and revenue
enhancements from the REIT conversion and the Marriott transaction, the
Company’s ability to generate cash flows to support dividends, future board
determinations regarding the timing and amount of dividends and changes to the
dividend policy, which could be made at any time, the determination of
Adjusted FFO and REIT taxable income, and the Company’s ability to borrow
funds pursuant to its credit agreements. Other factors that could cause
operating and financial results to differ are described in the filings made
from time to time by the Company with the U.S. Securities and Exchange
Commission (SEC) and include the risk factors described in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2012. 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.

Additional Information

This release should be read in conjunction with the consolidated financial
statements and notes thereto included in our most recent report on Form 10-K.
Copies of our reports are available on our website at no expense at
www.rymanhp.com and through the SEC’s Electronic Data Gathering Analysis and
Retrieval System (“EDGAR”) at www.sec.gov.

Retail Adjusted Revenue

Under Marriott International, Inc.’s management of Gaylord Opryland, Gaylord
Texan, and Gaylord National, the retail operations of such hotels were
outsourced to a third party retailer beginning in the fourth quarter of 2012.
The properties now receive rental lease payments rather than full retail
revenue and associated expense. The net impact of this change lowered overall
retail revenue for each affected property. During the first quarter of 2013
the change resulted in revenue decreases of approximately $2.2 million
(Gaylord Opryland–$1.3 million, Gaylord Texan–$0.5 million, and Gaylord
National–$0.4 million). The change impacted consolidated revenue, Hospitality
segment revenue, property revenue, and Total RevPAR as explained below. To
enable period-over-period comparison, we have included adjusted 2012 revenue
and 2012 Total RevPAR figures to reflect the elimination of retail revenues
from operations that have been outsourced in the 2013 period. No adjustments
were made to the Gaylord Palms’ results due to the fact that during all
periods presented, retail operations were outsourced at that property. A
reconciliation of actual revenue to Retail Adjusted Revenue for the 2012
period is set forth below under “Supplemental Financial Results.”

Calculation of RevPAR and Total RevPAR

We calculate revenue per available room (“RevPAR”) for our hotels by dividing
room revenue by room nights available to guests for the period. We calculate
total revenue per available room (“Total RevPAR”) for our hotels by dividing
the sum of room revenue, food & beverage, and other ancillary services revenue
by room nights available to guests for the period. We calculate retail
adjusted total revenue per available room (“Retail Adjusted Total RevPAR”) for
our hotels by dividing the sum of room revenue, food & beverage, and other
ancillary services revenue minus the retail inventory adjustment for the
period by room nights available to guests for the period.

RevPAR estimated annual increases included in our guidance are based on 2012
RevPAR of $123.36 (as adjusted to reflect a change in room counting methods
that does not exclude renovation rooms from the calculation of rooms
available, per Marriott room counting methods), and Total RevPAR estimated
annual increases are based on 2012 Retail Adjusted Total RevPAR of $305.30 (as
adjusted to reflect the elimination from the first three quarters of 2012 of
revenues from retail operations that were outsourced to a third-party retailer
beginning in the fourth quarter of 2012, as well as Marriott room counting
methods).

Non-GAAP Financial Measures

We present the following non-GAAP financial measures we believe are useful to
investors as key measures of our operating performance: Adjusted EBITDA,
Adjusted FFO and Retail Adjusted Revenue, as described above.

To calculate Adjusted EBITDA, we determine EBITDA, which represents net income
(loss) determined in accordance with GAAP, plus loss (income) from
discontinued operations, net; provision (benefit) for income taxes; other
(gains) and losses, net; (income) loss from unconsolidated entities; interest
expense; and depreciation and amortization, less interest income. Adjusted
EBITDA is calculated as EBITDA plus preopening costs; non-cash ground lease
expense; equity-based compensation expense; impairment charges; any closing
costs of completed acquisitions; interest income on Gaylord National bonds;
other gains (and losses); REIT conversion costs and any other adjustments we
have identified in this release. We believe Adjusted EBITDA is useful to
investors in evaluating our operating performance because this measure helps
investors evaluate and compare the results of our operations from period to
period by removing the impact of our capital structure (primarily interest
expense) and our asset base (primarily depreciation and amortization) from our
operating results. A reconciliation of net income (loss) to EBITDA and
Adjusted EBITDA and a reconciliation of segment operating income to segment
Adjusted EBITDA are set forth below under “Supplemental Financial Results.”
Our method of calculating Adjusted EBITDA as used herein differs from the
method we used to calculate Adjusted EBITDA as presented in press releases
covering periods prior to 2013.

We calculate Adjusted FFO to mean net income (loss) (computed in accordance
with GAAP), excluding non-controlling interests, and gains and losses from
sales of property; plus depreciation and amortization (excluding amortization
of deferred financing costs and debt discounts) and impairment losses; we also
exclude written-off deferred financing costs, non-cash ground lease expense,
amortization of debt discounts and amortization of deferred financing costs;
and gain (loss) on extinguishment of debt, and subtract certain capital
expenditures (the required FF&E reserves for our managed properties plus
maintenance capital expenditures for our non-managed properties). We also
exclude the effect of the non-cash income tax benefit relating to the REIT
conversion. We have presented Adjusted FFO both excluding and including REIT
conversion costs. We believe that the presentation of Adjusted FFO provides
useful information to investors regarding our operating performance because it
is a measure of our operations without regard to specified non-cash items such
as real estate depreciation and amortization, gain or loss on sale of assets
and certain other items which we believe are not indicative of the performance
of our underlying hotel properties. We believe that these items are more
representative of our asset base than our ongoing operations. We also use
Adjusted FFO as one measure in determining our results after taking into
account the impact of our capital structure. A reconciliation of net income
(loss) to Adjusted FFO is set forth below under “Supplemental Financial
Results.”

We caution investors that amounts presented in accordance with our definitions
of Adjusted EBITDA and Adjusted FFO may not be comparable to similar measures
disclosed by other companies, because not all companies calculate these
non-GAAP measures in the same manner. Adjusted EBITDA and Adjusted FFO, and
any related per share measures, should not be considered as alternative
measures of our net income (loss), operating performance, cash flow or
liquidity. Adjusted EBITDA and Adjusted FFO may include funds that may not be
available for our discretionary use due to functional requirements to conserve
funds for capital expenditures and property acquisitions and other commitments
and uncertainties. Although we believe that Adjusted EBITDA and Adjusted FFO
can enhance an investor’s understanding of our results of operations, these
non-GAAP financial measures, when viewed individually, are not necessarily
better indicators of any trend as compared to GAAP measures such as net income
(loss) or cash flow from operations. In addition, you should be aware that
adverse economic and market and other conditions may harm our cash flow.

                                                            
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
                                                                 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Unaudited
(In thousands, except per share data)
                                                                 
                                                 Three Months Ended
                                                 Mar. 31,
                                                    2013           2012
Revenues:
Rooms                                            $   85,509      $   87,534
Food and beverage                                    98,188          108,076
Other hotel revenue                                  25,884          30,438
Opry and Attractions                               12,532      12,867  
Total revenues                                     222,113     238,915 
                                                                 
Operating expenses:
Rooms                                                25,087          22,968
Food and beverage                                    61,248          61,614
Other hotel expenses                                 69,568          72,894
Management fees                                    3,469       -       
Total hotel operating expenses                       159,372         157,476
Opry and Attractions                                 11,286          10,757
Corporate                                            6,666           13,006
REIT conversion costs                                14,992          3,053
Casualty loss                                        32              174
Preopening costs                                     -               331
Depreciation and amortization                      32,009      32,434  
Total operating expenses                           224,357     217,231 
                                                                 
Operating income (loss)                              (2,244  )       21,684
                                                                 
Interest expense, net of amounts                     (13,323 )       (14,362 )
capitalized
Interest income                                      3,051           3,154
Other gains and (losses), net                      (6      )    -       
Income (loss) before income taxes                    (12,522 )       10,476
                                                                 
(Provision) benefit for income taxes               66,292      (4,469  )
Income from continuing operations                    53,770          6,007
                                                                 
Income from discontinued operations, net           10          21      
of taxes
Net income                                       $  53,780    $  6,028   
                                                                 
                                                                 
Basic net income per share:
Income from continuing operations                $   1.03        $   0.12
Income from discontinued operations, net           -           -       
of taxes
Net income                                       $  1.03      $  0.12    
                                                                 
Fully diluted net income per share:
Income from continuing operations                $   0.81        $   0.12
Income from discontinued operations, net           -           -       
of taxes
Net income                                       $  0.81      $  0.12    
                                                                 
Weighted average common shares for the
period:
Basic                                                52,427          48,715
Diluted (1)                                          66,720          50,137
                                                                 

      Represents GAAP calculation of diluted shares and does not consider
      anti-dilutive effect of the Company's purchased call options associated
(1)  with its convertible notes. For the three months ended March 31, 2013
      and 2012, the purchased call options effectively reduce dilution by
      approximately 7.7 million and 0.8 million shares of common stock,
      respectively.
      


RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
                                                          
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(In thousands)
                                                               
                                             Mar. 31,          Dec. 31,
                                             2013              2012
                                                               
ASSETS:
Property and equipment, net of               $   2,128,451   $   2,148,999
accumulated depreciation
Cash and cash equivalents -                        44,848            97,170
unrestricted
Cash and cash equivalents - restricted             6,934             6,210
Notes receivable                                   148,925           149,400
Trade receivables, net                             60,745            55,343
Deferred financing costs                           9,660             11,347
Prepaid expenses and other assets               55,879         63,982
Total assets                                 $   2,455,442   $   2,532,451
                                                               
                                                               
LIABILITIES AND STOCKHOLDERS' EQUITY:
Debt and capital lease obligations           $     1,092,081   $     1,031,863
Accounts payable and accrued                       145,042           218,461
liabilities
Deferred income taxes                              35,026            88,938
Deferred management rights proceeds                185,615           186,346
Dividends payable                                  25,971            -
Other liabilities                                  139,071           153,245
Stockholders' equity                            832,636        853,598
Total liabilities and stockholders'          $   2,455,442   $   2,532,451
equity
                                                                     

                                                                 
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
ADJUSTED EBITDA RECONCILIATION
Unaudited
(in thousands)
                                                                        
                                                                        
                           Three Months Ended Mar. 31,
                           2013                       2012
                           $                Margin   $                Margin
Consolidated
Revenue                    $   222,113              $   238,915
Net income                 $     53,780               $     6,028
Income from
discontinued                     (10     )                  (21     )
operations, net of
taxes
Provision (benefit)              (66,292 )                  4,469
for income taxes
Other (gains) and                6                          -
losses, net
Interest expense,                10,272                     11,208
net
Depreciation &                32,009                 32,434  
amortization
EBITDA                           29,765      13.4 %         54,118      22.7 %
Preopening costs                 -                          331
Non-cash lease                   1,399                      1,426
expense
Equity-based                     1,394                      2,356
compensation
Interest income on
Gaylord National                 3,048                      3,150
bonds
Other gains and                  (6      )                  -
(losses), net
(Gain) loss on                   1                          -
disposal of assets
Casualty loss                    32                         174
REIT conversion               14,992               3,053     
costs
Adjusted EBITDA            $   50,625    22.8 %   $   64,608    27.0 %
                                                                        
Hospitality segment
Revenue                    $     209,581              $     226,048
Operating income                 17,661                     39,705
Depreciation &                   26,801                     28,536
amortization
Preopening costs                 -                          331
Non-cash lease                   1,399                      1,426
expense
Equity-based                     -                          783
compensation
Interest income on
Gaylord National                 3,048                      3,150
bonds
Other gains and                  (6      )                  -
(losses), net
(Gain) loss on                   1                          -
disposal of assets
REIT conversion               5,747                -         
costs
Adjusted EBITDA            $   54,651    26.1 %   $   73,931    32.7 %
                                                                        
Opry and Attractions
segment
Revenue                    $     12,532               $     12,867
Operating income                 (190    )                  684
(loss)
Depreciation &                   1,366                      1,285
amortization
Equity-based                     129                        63
compensation
Casualty loss                    -                          141
REIT conversion               70                   -         
costs
Adjusted EBITDA            $   1,375     11.0 %   $   2,173     16.9 %
                                                                        
Corporate and Other
segment
Operating loss                   (19,715 )                  (18,705 )
Depreciation &                   3,842                      2,613
amortization
Equity-based                     1,265                      1,510
compensation
Casualty loss                    32                         33
REIT conversion               9,175                  3,053   
costs
Adjusted EBITDA            $   (5,401  )            $   (11,496 )
                                                                        

                                                              
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
FUNDS FROM OPERATIONS ("FFO") AND ADJUSTED FFO RECONCILIATION
Unaudited
(in thousands, except per share data)
                                                                   
                                                                   
                                                   Three Months Ended Mar. 31,
                                                     2013         2012    
                                                     $            $       
Consolidated
Net income                                         $  53,780       $ 6,028
Depreciation & amortization                           32,009         32,434
(Gains) losses on sale of real estate assets         1            -       
FFO                                                   85,790         38,462
                                                                   
Capital expenditures (1)                              (7,747   )     (13,842 )
Non-cash lease expense                                1,399          1,426
Impairment charges                                    132            -
Write-off of deferred financing costs                 544            -
Amortization of deferred financing costs              1,165          1,212
Amortization of debt discounts                        3,593          3,307
Noncash tax benefit resulting from REIT              (61,340  )    -       
conversion
Adjusted FFO                                       $  23,536      $ 30,565  
REIT conversion costs (tax effected)                 11,338       1,944   
Adjusted FFO excluding REIT conversion costs       $  34,874      $ 32,509  
                                                                   
                                                                   
FFO per basic share                                $  1.64         $ 0.79
Adjusted FFO per basic share                       $  0.45         $ 0.63
Adjusted FFO (excl. REIT conversion costs)         $  0.67         $ 0.67
per basic share
                                                                   
FFO per diluted share (2)                          $  1.29         $ 0.77
Adjusted FFO per diluted share (2)                 $  0.35         $ 0.61
Adjusted FFO (excl. REIT conversion costs)         $  0.52         $ 0.65
per diluted share (2)
                                                                   

(1)  Represents FF&E reserve for managed properties and maintenance capital
      expenditures for non-managed properties.
      
      The GAAP calculation of diluted shares does not consider the
      anti-dilutive effect of the Company's purchased call options associated
(2)   with its convertible notes. For the three months ended March 31, 2013
      and 2012, the purchased call options effectively reduce dilution by
      approximately 7.7 million and 0.8 million shares of common stock,
      respectively.
      


RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
Unaudited
(in thousands, except operating metrics)
                                               
                                                   
                                     Three Months Ended Mar. 31,
                                     2013            2012 (1)
                                                     
HOSPITALITY OPERATING METRICS:
                                                     
Hospitality Segment
                                                     
Occupancy                                67.5%          68.7%
Average daily rate (ADR)             $   173.84      $  172.82
RevPAR                               $   117.33      $  118.78
OtherPAR                             $   170.23      $  187.97
Total RevPAR                         $   287.56      $  306.75
                                                     
Revenue                              $   209,581     $  226,048
Adjusted EBITDA                      $   54,651      $  73,931
Adjusted EBITDA Margin                   26.1%          32.7%
                                                     
Gaylord Opryland
                                                     
Occupancy                                70.4%          66.2%
Average daily rate (ADR)             $   157.33      $  158.00
RevPAR                               $   110.76      $  104.56
OtherPAR                             $   153.62      $  164.90
Total RevPAR                         $   264.38      $  269.46
                                                     
Revenue                              $   68,608      $  70,669
Adjusted EBITDA                      $   21,233      $  22,895
Adjusted EBITDA Margin                   30.9%          32.4%
                                                     
Gaylord Palms
                                                     
Occupancy                                79.9%          81.8%
Average daily rate (ADR)             $   178.29      $  182.71
RevPAR                               $   142.47      $  149.44
OtherPAR                             $   224.54      $  253.32
Total RevPAR                         $   367.01      $  402.76
                                                     
Revenue                              $   46,442      $  51,532
Adjusted EBITDA                      $   12,786      $  20,212
Adjusted EBITDA Margin                   27.5%          39.2%
                                                     
Gaylord Texan
                                                     
Occupancy                                68.2%          69.4%
Average daily rate (ADR)             $   175.13      $  177.75
RevPAR                               $   119.46      $  123.43
OtherPAR                             $   209.32      $  227.65
Total RevPAR                         $   328.78      $  351.08
                                                     
Revenue                              $   44,681      $  48,274
Adjusted EBITDA                      $   12,243      $  16,609
Adjusted EBITDA Margin                   27.4%          34.4%
                                                     
Gaylord National
                                                     
Occupancy                                55.6%          64.7%
Average daily rate (ADR)             $   208.33      $  190.94
RevPAR                               $   115.91      $  123.51
OtherPAR                             $   148.72      $  170.55
Total RevPAR                         $   264.63      $  294.06
                                                     
Revenue                              $   47,536      $  53,413
Adjusted EBITDA                      $   7,992       $  13,799
Adjusted EBITDA Margin                   16.8%          25.8%
                                                     
The Inn at Opryland (2)
                                                     
Occupancy                                56.6%          55.6%
Average daily rate (ADR)             $   109.09      $  103.57
RevPAR                               $   61.74       $  57.55
OtherPAR                             $   23.13       $  24.53
Total RevPAR                         $   84.87       $  82.08
                                                     
Revenue                              $   2,314       $  2,160
Adjusted EBITDA                      $   397         $  416
Adjusted EBITDA Margin                   17.2%          19.3%
                                                        

      For purposes of comparability, both 2013 and 2012 occupancy, RevPAR,
      OtherPAR and Total RevPAR are calculated using Marriott's method of
      calculating available rooms and do not exclude renovation rooms from the
      calculation of rooms available, which is different from how the Company
(1)  has previously accounted for renovation rooms prior to the Marriott
      transition. In addition, both 2013 and 2012 occupancy and ADR do not
      include complimentary room nights in the calculation of occupied rooms,
      which is different from how the Company has previously accounted for
      complimentary rooms.
      
(2)   Includes other hospitality revenue and expense.
      

                                                           
RYMAN HOSPITALITY PROPERTIES, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL RESULTS
RECONCILIATION OF ADJUSTED RESULTS
Unaudited
(in thousands, except operating metrics)
                                                         
                                               Three Months Ended Mar. 31,
                                               2013          2012
Consolidated:
Revenue                                        $  222,113     $  238,915
Less: Retail Inventory Adjustment                -            (2,205  )
Retail Adjusted Revenue                        $  222,113     $  236,710
                                                              
Hospitality Segment:
Revenue                                        $  209,581     $  226,048
Less: Retail Inventory Adjustment                -            (2,205  )
Retail Adjusted Revenue                        $  209,581     $  223,843
                                                              
Total RevPAR                                   $  287.56      $  306.75
Retail Adjusted Total RevPAR                   $  287.56      $  303.76
                                                              
Gaylord Opryland:
Revenue                                        $  68,608      $  70,669
Less: Retail Inventory Adjustment                -            (1,336  )
Retail Adjusted Revenue                        $  68,608      $  69,333
                                                              
Total RevPAR                                   $  264.38      $  269.46
Retail Adjusted Total RevPAR                   $  264.38      $  264.37
                                                              
Gaylord Palms:
Revenue                                        $  46,442      $  51,532
Less: Retail Inventory Adjustment                -            -       
Retail Adjusted Revenue                        $  46,442      $  51,532
                                                              
Total RevPAR                                   $  367.01      $  402.76
Retail Adjusted Total RevPAR                   $  367.01      $  402.76
                                                              
Gaylord Texan:
Revenue                                        $  44,681      $  48,274
Less: Retail Inventory Adjustment                -            (474    )
Retail Adjusted Revenue                        $  44,681      $  47,800
                                                              
Total RevPAR                                   $  328.78      $  351.08
Retail Adjusted Total RevPAR                   $  328.78      $  347.63
                                                              
Gaylord National:
Revenue                                        $  47,536      $  53,413
Less: Retail Inventory Adjustment                -            (395    )
Retail Adjusted Revenue                        $  47,536      $  53,018
                                                              
Total RevPAR                                   $  264.63      $  294.06
Retail Adjusted Total RevPAR                   $  264.63      $  291.89
                                                              
Inn at Opryland (and Other Hospitality):
Revenue                                        $  2,314       $  2,160
Less: Retail Inventory Adjustment                -            -       
Retail Adjusted Revenue                        $  2,314       $  2,160
                                                              
Total RevPAR                                   $  84.87       $  82.08
Retail Adjusted Total RevPAR                   $  84.87       $  82.08
                                                                         

                                                            
Ryman Hospitality Properties, Inc. and Subsidiaries
RECONCILIATION OF FORWARD-LOOKING STATEMENTS
Unaudited
(in thousands)
 
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
("Adjusted EBITDA")
and Adjusted Funds From Operations ("AFFO") reconciliation:
                                                                   
                                                              
                         PRIOR GUIDANCE RANGE        NEW GUIDANCE RANGE
                         FOR FULL YEAR 2013          FOR FULL YEAR 2013
                         Low           High          Low           High
  Ryman
  Hospitality
  Properties, Inc.
    Net Income           $ 91,100      $ 98,100      $ 145,400     $ 152,400
    Provision
    (benefit) for          (8,000  )     (7,000  )     (19,300 )     (18,400 )
    income taxes
    Write off and
    Valuation              -             -             (62,000 )     (62,000 )
    Allowance
    Other (gains)
    and losses,            (2,300  )     (2,300  )     (2,300  )     (2,300  )
    net
    Interest               46,000        50,900        60,000        64,000
    expense
    Interest              (12,000 )    (12,000 )    (12,000 )    (12,000 )
    income
    Operating              114,800       127,700       109,800       121,700
    Income
    Depreciation
    and                   120,000     125,000     120,000     125,000 
    amortization
    EBITDA                 234,800       252,700       229,800       246,700
    Non-cash lease         5,600         5,600         5,600         5,600
    expense
    Equity based           6,300         6,400         6,300         6,400
    compensation
    Other gains
    and (losses),          2,300         2,300         2,300         2,300
    net
    Interest               12,000        12,000        12,000        12,000
    income
    REIT
    conversion            20,000      18,000      25,000      24,000  
    costs
    Adjusted             $ 281,000    $ 297,000    $ 281,000    $ 297,000 
    EBITDA
                                                                   
  Hospitality
  Segment
    Operating            $ 159,100     $ 167,100     $ 156,800     $ 164,300
    Income
    Depreciation
    and                   107,000     110,000     107,000     110,000 
    amortization
    EBITDA                 266,100       277,100       263,800       274,300
    Non-cash lease         5,600         5,600         5,600         5,600
    expense
    Equity based           -             -             -             -
    compensation
    Other gains
    and (losses),          2,300         2,300         2,300         2,300
    net
    Interest               12,000        12,000        12,000        12,000
    income
    REIT
    conversion            4,000       3,000       6,300       5,800   
    costs
    Adjusted             $ 290,000    $ 300,000    $ 290,000    $ 300,000 
    EBITDA
                                                                   
  Opry and
  Attractions
  Segment
    Operating            $ 8,900       $ 9,800       $ 8,700       $ 9,600
    Income
    Depreciation
    and                   5,500       6,500       5,500       6,500   
    amortization
    EBITDA                 14,400        16,300        14,200        16,100
    Non-cash lease         -             -             -             -
    expense
    Equity based           600           700           600           700
    compensation
    Interest               -             -             -             -
    income
    REIT
    conversion            -           -           200         200     
    costs
    Adjusted             $ 15,000     $ 17,000     $ 15,000     $ 17,000  
    EBITDA
                                                                   
  Corporate and
  Other Segment
    Operating            $ (53,200 )   $ (49,200 )   $ (55,700 )   $ (52,200 )
    Income
    Depreciation
    and                   7,500       8,500       7,500       8,500   
    amortization
    EBITDA                 (45,700 )     (40,700 )     (48,200 )     (43,700 )
    Non-cash lease         -             -             -             -
    expense
    Equity based           5,700         5,700         5,700         5,700
    compensation
    Interest               -             -             -             -
    income
    REIT
    conversion            16,000      15,000      18,500      18,000  
    costs
    Adjusted             $ (24,000 )   $ (20,000 )   $ (24,000 )   $ (20,000 )
    EBITDA
                                                                   
  Ryman
  Hospitality
  Properties, Inc.
    Net Income           $ 91,100      $ 98,100      $ 145,400     $ 152,400
    Depreciation &         120,000       125,000       120,000       125,000
    Amortization
    Capital                (38,000 )     (36,000 )     (38,000 )     (36,000 )
    Expenditures
    Non-Cash Lease         5,600         5,600         5,600         5,600
    Expense
    Amortization
    of Debt                15,000        15,000        15,000        15,000
    Premiums/Disc.
    Amortization           5,300         5,300         7,000         7,000
    of DFC
    Other
    Non-recurring          -             -             (62,000 )     (62,000 )
    Items
    Loss (Gain) on
    debt                  -           -           -           -       
    extinguishment
    Adjusted FFO           199,000       213,000       193,000       207,000
    REIT
    Conversion            13,000      12,000      19,000      18,000  
    Costs
    Adjusted FFO
    Excl. REIT           $ 212,000    $ 225,000    $ 212,000    $ 225,000 
    Conversion
    Costs
                                                                   

Contact:

Investor Relations:
Ryman Hospitality Properties, Inc.
Mark Fioravanti, 615-316-6588
Executive Vice President and Chief Financial Officer
mfioravanti@rymanhp.com
or
Todd Siefert, 615-316-6344
Vice President of Corporate Finance & Treasurer
tsiefert@rymanhp.com
or
Media:
Ryman Hospitality Properties, Inc.
Brian Abrahamson, 615-316-6302
Vice President of Corporate Communications
babrahamson@rymanhp.com
or
Sloane & Company
Josh Hochberg, 212-446-1892
jhochberg@sloanepr.com
or
Dan Zacchei, 212-446-1882
dzacchei@sloanepr.com
 
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