UPDATE: Goldman Sachs Downgrades Ryman Hospitality Properties to Neutral, Lowers PT as Group Business Outlook Remains Tepid

In a report published Thursday, Goldman Sachs analyst Steven Kent downgraded the rating on Ryman Hospitality Properties RHP from Buy to Neutral, and lowered the price target from $40.00 to $36.50. In the report, Goldman Sachs noted, “We downgrade Ryman to Neutral from Buy as the outlook for group business remains tepid. We expect the sales initiatives being implemented by Ryman and its manager (Marriott) to reverse weak trends seen year to date; but the P&L impact is likely to take longer to manifest as we believe these efforts will favorably impact bookings for 2014 and beyond. Operational performance and positive commentary on group initiatives will be investors' focal concerns in the upcoming quarters. We lower our target price to $36.50 (11% total returns; including a 5.6% dividend yield). Since being added to the Buy List on November 12, 2012, shares are 8% vs. S&P 500 up 20% (over 12 months shares are -13% vs. the S&P 500 up 14%). Weaknesses in group trends have led to FY13 guidance being lowered twice. Additionally, the cost synergies that we expected from the integration have taken longer to materialize, leading to underperformance vs. the market and peers.” Ryman Hospitality Properties closed on Wednesday at $35.01.