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Ryman Hospitality funds a $1.38B Orlando resort deal with stock and notes
The acquisition is financed with a $5.1 million-share offering priced at $117 per share plus $700 million of senior unsecured notes due in 2035.
Ryman Hospitality Properties is using a mix of equity and debt to fund its $1.38 billion acquisition of the Grande Lakes Orlando resort, a move that triggered an initial share pullback after the announcement. MarketBeat Ratings links the market's immediate reaction to the typical dilution effect of secondary equity offerings, noting Ryman's stock fell about 3% after a 5.1 million share public offering priced at $117 per share.
The resort complex spans 409 acres and includes hotels operated under the JW Marriott and Ritz-Carlton brands, along with about 320,000 square feet of meeting space. The deal covers the fee simple interest, with the 1,010-room JW Marriott and 582-room Ritz-Carlton among the key assets.
To finance the purchase, Ryman used a balanced capital stack rather than relying only on equity. Alongside the public offering, the company secured a $700 million private placement of senior unsecured notes due in 2035, a structure described as helping manage capital costs and reduce exposure to near term interest rate changes.
MarketBeat Ratings also points to real estate metrics used to evaluate the transaction, citing the property’s trailing 12-month Adjusted EBITDAre of about $110 million and a reported implied acquisition multiple of 12.5x. The analysis further says Ryman expects the deal to be accretive to Adjusted FFO per share by 2027.