The company has hired Morgan Stanley to evaluate investors.
A general view of atmosphere during his Public Celebration of Life of Little Jimmy Dickens at The Grand Ole Opry on January 8, 2015 in Nashville, Tennessee. Terry Wyatt/Getty Images
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Ryman Hospitality Properties (RHP) has engaged Morgan Stanley to evaluate potential offers in purchasing a portion of its Opry Entertainment Group (OEG), which includes flagship venue The Grand Ole Opry House and the Opry’s original Nashville home, the Ryman Auditorium. The Opry is celebrating its 100th birthday this year.
Bloomberg was first to report the news earlier on Wednesday (June 24), stating that RHP was interested in selling up to 70% of OEG.
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In response, RHP issued a statement, acknowledging that bringing in partners to invest in OEG for its long-term growth is part of the plan. The statement stresses, however, that “the company has not entered into any agreements, and there are no assurances that any transaction will occur.”
“With the rise in global popularity of country music and the increasing demand for live experiences, we have received inbound interest from a range of organizations seeking to partner with our entertainment business,” said Colin Reed, RHP’s executive chairman, in a statement. “In that context, we have engaged Morgan Stanley & Co. LLC to assist in evaluating potential opportunities. We expect to play an integral role in the continued growth of OEG irrespective of any strategic partnerships being considered.”
Reed added, “We are incredibly proud of our OEG business and of our role as stewards of these historic and iconic brands, which are deeply important to the country music community and the markets we serve. We remain focused on bringing artists and audiences together through iconic live entertainment experiences. We have previously shared our view that enabling OEG to operate outside of our REIT [real estate investment trusts] structure over time is important for its long-term growth trajectory, and we believe strategic partnerships can further support its growth.”
RHP owns a 70% controlling ownership interest in OEG, which also includes the radio station WSM 650 AM; Blake Shelton’s Ole Red; Luke Combs’ Category 10; and the ACL Live at the Moody Theater in downtown Austin, among other properties. OEG also manages several outdoor venues, including Ascend Federal Credit Union Amphitheater in Nashville and CCNB Amphitheatre in Simpsonville, S.C.
RHP additionally owns a number of Gaylord properties, including Opryland Resort & Convention Center, as well as several JW Marriott resorts.
