Ryman Hospitality Properties (RHP) has moved into the spotlight after agreeing to buy the Grande Lakes Orlando Resort for about US$1.38b, pairing this acquisition with a US$596.7m follow-on equity offering and updated 2026 guidance.

The acquisition news and raised 2026 guidance come after a strong run in Ryman Hospitality Properties' stock, with a 90 day share price return of 15.33% and a year to date share price return of 31.46%. The 1 year total shareholder return of 39.47% and 5 year total shareholder return of 93.20% point to momentum that has been building over a longer horizon.

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Bulls see Ryman Hospitality Properties using Grande Lakes and fresh equity to scale a high end resort platform. Bears focus on dilution risk and a rich recent share run. Which case does the current valuation support?

Most Popular Narrative: 6.4% Undervalued

The most followed narrative on Ryman Hospitality Properties pegs fair value at $134.15, modestly above the last close at $125.52, and ties that gap to a specific earnings and margin path.

Analysts are assuming Ryman Hospitality Properties's revenue will grow by 4.3% annually over the next 3 years.

Analysts assume that profit margins will increase from 9.9% today to 12.1% in 3 years time.

If you want to see what sits behind that higher margin target and earnings step up, the narrative leans on specific growth, pricing, and profitability assumptions that are all laid out in detail.

Result: Fair Value of $134.15 (UNDERVALUED)

However, Ryman Hospitality Properties still faces real risk if new hotel supply and short term rentals pressure room rates, or if higher interest and labor costs squeeze margins.

Another View On Ryman Hospitality Properties’ Valuation

The first framework points to Ryman Hospitality Properties trading at a discount to a $134.15 fair value. A different lens tells a tighter story. On a P/E of 31.5x, RHP sits above both the peer average of 25.6x and the wider Global Hotel and Resort REITs average of 14.3x, even though the fair ratio sits higher at 39.3x. That mix of apparent discount to a fair ratio and premium to peers raises a practical question for investors: Is the potential upside about RHP closing the gap to its fair ratio, or about the risk that its P/E moves closer to sector levels instead?

Next Steps

This mix of optimism around Ryman Hospitality Properties and concern about its risks has created a split narrative, so it is worth checking the numbers yourself and forming a clear view while the story is still evolving. To see both sides set out in one place, review the 3 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.