With leading accommodation provider Mantra Group Ltd (ASX: MTR) likely to be acquired by French hotel group Accor for $1.2 billion in the near future, it looks as though my favourite investment option to gain exposure to the Australian tourism boom will soon be gone from the ASX boards.
But don't worry because there's arguably another investment option in the industry that is just as promising.
I am of course referring to Event Hospitality and Entertainment Ltd (ASX: EVT).
I believe that Event is in a strong position to profit from the tourism boom thanks to its accommodation brands which include Rydges, QT, and Thredbo Alpine Village.
As more and more tourists visit Australia, I expect demand for hotel rooms will increase substantially.
I believe this will lead to Event enjoying higher occupancy levels and room rates, ultimately boosting its bottom line.
However, unlike Mantra, Event isn't focused purely on accommodation. Approximately two-thirds of its earnings before interest and tax comes from its cinema business.
While tourism will impact this side of the business as well, I don't expect it to be as profound as its accommodation businesses.
The good news here, though, is that after a tough FY 2017, I feel confident that its Entertainment segment will return to growth again in FY 2018 as a stronger line-up of film releases hits cinemas.
Overall, I feel this could make Event a good buy and hold investment option and a solid alternative to Mantra.
