Key facts
- Ryman Hospitality Properties is exploring the sale of its 70% controlling stake in Opry Entertainment Group.
- Opry Entertainment Group owns assets including the Grand Ole Opry House, WSM 650 AM, and the Ryman Auditorium.
- The REIT has appointed Morgan Stanley to explore strategic partnerships for its entertainment business.
- The entertainment group was valued at $1.4 billion in 2022.
- Ryman Hospitality Properties also owns over 12,000 hotel rooms and significant meeting space.
Ryman Hospitality Properties, a real estate investment trust focused on hospitality, is considering selling its majority stake in Opry Entertainment Group. The REIT owns a 70% controlling interest in the entertainment company, which includes iconic venues and media assets such as the Grand Ole Opry House, the historic WSM 650 AM radio station, and the Ryman Auditorium.
Ryman has engaged Morgan Stanley to explore strategic partnerships and potential sale options for its entertainment business. Executive Chairman Colin Reed stated that enabling Opry Entertainment Group to operate outside the REIT structure is important for its long-term growth, especially given the rising global popularity of country music and demand for live experiences. The company has reportedly received inbound interest from various organizations.
While Ryman has not entered into any agreements and a sale is not certain, the exploration signals a potential shift in its business strategy. Opry Entertainment Group was valued at $1.4 billion as of 2022. Ryman Hospitality Properties itself manages a significant portfolio of hotels, including the Gaylord Palms Resort & Convention Center and Gaylord Texan Resort & Convention Center, boasting over 12,000 hotel rooms and extensive meeting space.
Previously, Ryman sold a 30% stake in Opry Entertainment Group to Atairos and NBCUniversal for $296 million in June 2022. In its first-quarter earnings, Ryman reported a 13% year-over-year revenue increase to $664 million. Shares of the REIT were up 0.3% on Thursday morning, having risen more than 34% year-to-date.