It’s rare for a single sporting event to move the stock market, but a new report by Canaccord Genuity analyst Ryan Meliker suggested that the 2016 Super Bowl in San Francisco will do just that.
In his report, Meliker explained just how significant the Super Bowl will be and which stocks will be the biggest beneficiaries of the big game.
The Numbers
According to Canaccord, the Super Bowl alone will boost Q1 2016 revenue per available room (RevPAR) for San Francisco area hotels by 5.5 percent. The firm estimates that the Super Bowl will single-handedly add 59,000 room nights and $66 million in room revenue in the San Francisco area in Q1.
Comps
Meliker believes the fact that the San Francisco and San Jose areas have about 50,000 fewer rooms than the New York City area means that San Francisco hotels can expect a much larger RevPAR boost than New York witnessed in 2014.
Although the San Francisco Super Bowl will likely not have as significant of an impact on RevPAR as the Phoenix game did, investors have much more of an opportunity to benefit from the San Francisco game because there were no hotel REITs with significant exposure to the Phoenix area.
Top Names
Meliker believes that market expectations for San Francisco-exposed hotel REITs are extremely low, and that has left the space wide open for a Q1 upside surprise. Canaccord’s top Super Bowl investment picks include Ashford Hospitality Trust, Inc. AHT, DiamondRock Hospitality Company DRH, Starwood Hotels & Resorts Worldwide Inc HOT, Hersha Hospitality Trust HT, Summit Hotel Properties Inc INN and RLJ Lodging Trust RLJ.
Disclosure: The author holds no position in the stocks mentioned.
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