CONFIDENTIAL — MARKET RESEARCH

Nashville Market Analysis

Tim McGraw Entertainment Holdings | Supporting Market Research

Executive Summary

Nashville has emerged as America's fastest-growing major entertainment market, driven by unprecedented tourism growth, corporate relocations, and cultural momentum. The city's unique position as the global capital of country music creates structural advantages for TMEH's platform.

16M
Annual Visitors (2024)
$11B
Tourism Spending
72%
Hotel Occupancy
+3.4%
Annual Growth

Tourism Growth Trajectory

Year Visitors Tourism Spending YoY Growth Notes
2015 12.3M $5.8B Pre-boom baseline
2017 14.5M $6.9B +9% Growth acceleration
2019 16.1M $9.1B +6% Pre-COVID peak
2020 8.8M $4.2B -45% COVID impact
2021 12.8M $7.8B +45% Recovery begins
2022 14.4M $9.0B +13% Approaching pre-COVID
2023 15.2M $10.2B +6% Exceeded 2019
2024 16.0M $11.0B +5% Record Year
2025E 16.5M $11.5B +3% Projected
2030E 19.0M $14.0B +3% CAGR Projected

Sources: Nashville Convention & Visitors Corp, Tennessee Department of Tourist Development, Nashville Area Chamber of Commerce

Key Insight: Nashville recovered from COVID faster than any major U.S. tourism market, demonstrating structural resilience. The city surpassed 2019 visitor counts by 2023 and set new records in 2024.

Tourism Demographics

Visitor Profile

Demographic%
Leisure Travelers78%
Business Travelers22%
First-Time Visitors42%
Repeat Visitors58%
Avg. Length of Stay3.2 nights
Avg. Daily Spend$215

Top Visitor Activities

ActivityParticipation
Live Music89%
Dining/Bars85%
Historic Sites62%
Shopping58%
Concerts/Events47%
Outdoor Activities34%

Country Music Industry

Nashville serves as the undisputed global capital of country music, hosting the industry's major labels, publishers, and talent agencies. This concentration creates unique advantages for TMEH.

$50B+
US Country Ecosystem
10%
US Streaming Share
$2B
Annual Concert Revenue
45%
Americans Listen

Nashville Music Industry Metrics

Category Value Nashville Share
Major Label Operations All major labels present HQ or major office
Music Publishing $1.5B+ annually ~60% of country
Recording Studios 200+ commercial studios More per capita than LA
Songwriters 10,000+ registered Largest concentration globally
Live Music Venues 180+ venues Broadway alone: 30+

Western Lifestyle & Rodeo Market

The western lifestyle market is experiencing a cultural renaissance, driven by mainstream media (Yellowstone franchise) and shifting consumer preferences toward authenticity.

US Rodeo Market

Metric Value
Total Market Size $1.5B annually
PRCA Sanctioned Events 600+ annually
Total Rodeo Attendance 25M+ annually
Growth Rate +4-5% annually

Major Rodeo Comparables

Event Location Attendance Est. Revenue
Houston Livestock Show & Rodeo Houston, TX 2.5M $350M
Cheyenne Frontier Days Cheyenne, WY 200K $30M
Calgary Stampede Calgary, AB 1.2M $100M CAD
National Finals Rodeo Las Vegas, NV 170K $25M
Fort Worth Stock Show Fort Worth, TX 1.2M $75M
The "Yellowstone Effect": Paramount's Yellowstone franchise (5M+ viewers per episode) has driven unprecedented mainstream interest in western culture. Western wear sales increased 20%+ following series premiere. Tim McGraw's starring role in prequel 1883 directly connects TMEH to this cultural moment.

Nashville Entertainment Valuations

Nashville entertainment assets consistently command premium valuations due to scarcity, tourism tailwinds, and cultural significance.

Company Valuation Multiple Category
Ryman Hospitality Properties $6.63B (market cap) 17-18x EBITDA Venues, hospitality
Grand Ole Opry (implied) ~$2.0B 14x EBITDA Iconic venue/brand
Big Machine Records $1.05B 15x revenue Country music label
Ole (Nashville) $500M+ (private) 12x revenue Music publishing

TMEH models exit at 10x EBITDA—a 40-45% discount to Nashville public comparables—providing significant margin of safety.

Competitive Landscape

Nashville Entertainment Players

Player Focus TMEH Differentiation
Ryman Hospitality Grand Ole Opry, hotels, Ryman venue Complementary; different segment (rodeo/western)
Live Nation Concert promotion, festivals TMEH owns content + venues; integrated model
AEG Presents Festivals, touring No Nashville-specific western lifestyle play
Local Venue Operators Broadway honky-tonks TMEH brings national brand + artist exclusivity

TMEH Competitive Advantages

  1. Tim McGraw Exclusivity: Authentic artist brand with 30+ year credibility
  2. First-Mover: No major Nashville rodeo/western lifestyle event franchise
  3. Vertical Integration: Events + Venues + Content + Merchandise + Artist Services
  4. Nashville Relationships: 25+ years of industry network via Scott Siman
  5. Hard Assets: Catalog and real estate ownership vs. asset-light competitors

Nashville Growth Drivers

Economic Fundamentals

Tourism Infrastructure

Risk Factors

Risk Assessment Mitigation
Tourism Downturn Low-Medium Nashville showed resilience in COVID recovery; diversified economy
Over-Tourism Low Infrastructure investment keeping pace; visitor satisfaction high
Competition Medium TMEH first-mover in western lifestyle; Tim McGraw exclusivity
Economic Recession Medium Entertainment historically resilient; Nashville economy diversified

Investment Implications

Nashville's structural advantages—music industry concentration, record tourism, and cultural momentum—create favorable tailwinds for TMEH. The city's demonstrated resilience (fastest COVID recovery among major tourism markets) and continued infrastructure investment support the long-term thesis.

TMEH is positioned to capture this growth through destination events (MCR), hospitality venues (Draft House), and Nashville-centric content (Down Home Media).