There is no other concert making an impact this year as much as Taylor Swift’s “Eras Tour,” and the hotel operators are enjoying an increase in revenue as fans from nearby states travel to see the show.
The Eras Tour is the most expansive tour yet for the American singer, with 146 dates across five continents. The tour has been held mostly in the United States and recently moved to Mexico in August and will continue to travel through South America, including Argentina and Brazil.
T-Swift will begin her journey to Asia early 2024 and will visit France as the first European countries on the list on 9 May 2024 before concluding her Eras Tour in Canada in November.
According to the report from investment firm Bernstein, the hotel industry in the United States has seen a notable boost as the average revenue generated per room was 4 percentage points higher than the national benchmark for states during the month of Miss Americana’s visit. Those states saw an increase in revenue per room around 7% compared to the same period of a year prior.
Bernstein wrote in the research paper, stating that the rise could be attributed to higher room rates, while bookings also saw improvement as well. Hotel operators in Nashville saw occupancy jump more than 30% and room rates soar more than 50% on concert nights. Meanwhile, revenue per room was more than doubled during the weekend Swift was in town.
If applying this assumption to the hotel operators in Europe, Minor International Public Company Limited (SET: MINT) could be the most beneficial operator among Thai peers due to the fact that it owns NH Hotel, the third largest operator in hotel business in Europe.
Minor International operates in 19 countries in Europe of which are France, Portugal, Spain, UK, Ireland, Netherlands, Switzerland, Italy, Germany, Poland and Austria that are on the list of Eras Tour.
The tourism industry around the world is expecting to continue growing from the drought during Covid years.
NH Hotel reported ADR that exceeded the 2019 level in the first six months of this year as leisure demand strength together with the sustained reactivation of business travelers have set monthly revenue record highs in May and June. Meanwhile, total net profit in the first half was EUR 45 million, representing an increase by 13% compared to the same period of 2019.
As for Minor International, the company recorded core profit of THB 3.0 billion, representing a 148% y-y increase from 2Q22 and was 52% above pre-COVID 2Q19. The results reflected continued global recovery momentum in both hotel and restaurant sectors post-COVID.
In the meantime, the share price of MINT has flat growth from the beginning of this year as it is trading at THB 32.00 per share, almost 10% below its 52-week high of THB 35.00 in June. The political vacuum in Thailand in June and July had caused the Thai stock market to lack behind other emerging markets.
However, Thailand recently appointed its new prime minister, which dug the capital market out of nearly a three-month slump. The new government just today announced a temporary free-visa for Chinese and Kazakhstan tourists, which should give MINT as one of the Thai stocks in the tourism industry a boost.
Based on Refinitiv consensus, 15 analysts gave a buy recommendation on MINT, while hold and sell recommendation have one each. The consensus target price is set at THB 40.23 per share, which gives it a 25% upside from the current price.
Note that Taylor Swift’s schedule for Europe is in 2024.
