Live Nation Entertainment (lyv 1.44%) Sits at the center of the US concert industry, it runs Ticketmaster and added nearly 160 million fans through its network last year. There aren’t many ways for investors to directly own the subject. Live Nation is clear.
It runs the concert experience from ticketing to stage, and it is buying and building its own venues to capture more of every dollar fans spend. The company now controls 460 locations globally, tripling its real estate footprint since 2020. When people pay for live music, the majority of it flows through this company.
Image Source: Getty Images.
The Justice Department wrote a bull case. Its antitrust complaint alleges that Ticketmaster controls approximately 80% of primary ticketing at major venues. This is the kind of market share that most companies never put in writing, but the government did it for them.
This makes Live Nation the dominant story in live music. But for investors looking for an investment path that isn’t so crowded, there’s some rich country music history hidden inside a hotel REIT.
Nashville’s second play on live music
Raman Hospitality Properties (rhp +0.84%) This is the thing most people haven’t heard of, it’s hidden inside a Hotel REIT With 5% yield. It owns large-scale resort properties in major metro areas such as Orlando, Denver, Dallas and the Washington, DC area, as well as a controlling stake in the Grand Ole Opry and Ryman Auditorium in Nashville.
Five of the nation’s 10 largest nongaming convention hotels are Ryman properties, managed by Marriott under the Gaylord brand. The entertainment section is small, but it is a fast-paced piece, operated by stages that American music fans already know by name.
Country music isn’t taking over a larger share of the touring industry, and it doesn’t need to. Tours to the top 10 countries alone generated more than $1.2 billion last year. Luke Combs and George Strait each earned north of $75 million, and Strait did it in six shows.
Raman fills rooms, Ticketmaster fills seats
The convention finances business dividends. Corporate and association groups book years in advance and this visibility makes it cash flow Regular. The COVID-19 pandemic was the only thing that could break it, and it did. Raman suspended its dividend in 2020. It took three years for both to surpass pre-pandemic highsAdjusted Funds from Operations (AFFO) per share and dividends. Today they stand at $8.46 and $4.65, up 23% and 29% respectively from 2019.
Raman Hospitality Properties
today’s change
(0.84%) $0.77
current price
$92.34
key data points
market cap
$5.8B
day limit
$90.65 -$92.63
52wk range
$76.27 -$105.75
volume
12K
average volume
487K
gross margin
20.72%
dividend yield
5.08%
Concerts fill seats, but owning the building is marginal. When Live Nation owns an arena, it controls sponsorships, from naming rights to brand deals. This revenue has a higher margin than ticket sales and is increasing as the company expands locations. With more than 70% of this year’s sponsorship deals already booked, management has guided for double-digit adjusted operating income growth again in 2026.
Both companies are investing real capital into physical assets that are difficult to replicate. Live Nation continues to expand because fans keep showing up. Raman continues to build the convention centers that fund the payments and also owns the stages that have drawn crowds for more than a century. The demand for live entertainment is not decreasing and both are in a position to make profits from it.