户外娱乐市场更新

Contact UsIf you’d like to discuss any of ourtransactions in detail or have a deeperconversation about the industry, please donot hesitate to reach out—you can findour contact information on page 6.Family Entertainment CentersSelected Industry Coverage Based onRecent Deals and Current EngagementsMulti-Unit Location-Based/Experiential EntertainmentArcades/AttractionsTrampoline Parks/Kids Active PlayAmusement/Water ParksTalent AgenciesLive Entertainment/Festivals/Venues Leading Out-of-Home Entertainment Practice2Houlihan Lokey has established itself as a leader in the out-of-home entertainment(OOHE) space, evidenced by our impressive volume of closed transactions in the space,with more than 20 since 2022.Houlihan Lokey’s dedicated OOHE team hasclosed 21 transactions since 2022across amultitudeof entertainment sectors, demonstrating the team’s deep commitment to and success ineffectuating favorable outcomes, even in a challenging environment.Selected Recent and Current Market InsightsInflation remains asignificant challengeacross nearly allconsumer-focusedindustries (e.g.,entertainment, food,restaurants, etc.),pressuring OOHE’sresilience as operatorsraise prices to offsetcosts, all while closelymonitoring consumerdecisions and foottraffic levels.Different incomegroups haveresponded to elevatedprices in distinct ways:lower-incomeconsumers seek dealsand trade down, whilehigher-incomeconsumers pursueexclusivity and remainwilling to splurge.This dynamic forcesoperators to focus onthe perception ofvalue to retain bothtypes of customers,balancing promotionsand premium offerswith the goal ofdriving new andrepeat visitation.Despite incomedisparities, allconsumers show aclear preference foraccessible, affordableentertainment,creating significantmomentum forregional/local playersover destinationattractions in thecurrent environment. While the OOHEsector continues togrow, intensifiedcompetition and abroader range ofcompetitive offeringslead to fragmentedconsumer spending,resulting in toughercomparablesyear overyear as operatorsstruggle to maintainmarket share. 81%82%76%45%50%59%Low HHIMiddle HHIHigh HHIOut-of-Home Entertainment Withstands DifficultMacro Environment by Prioritizing Value3As inflation has broadly constrained consumer spending,OOHE operators have made strategic decisions to enhancetheir perceived value, aiming to attract and retain customersacross high and low household income brackets.…but Requires Operators Use Different Tactics to Support Traffic•As inflation amplifies spending disparities acrossincome classes, OOHE operators employ differentstrategies to retain customers.•Deals and promotions prove highly effective atimproving retention for lower-income consumers,who tend tofavoraffordable packages and flexiblespending experiences.–PLAY, for example, experienced an 11% SSSincrease from Monday to Thursday afterlaunching mid-week promotions in June 2024.•Higher-income consumers, on the other hand, arefar more willing to splurge, seeking “exclusive”/premium offers that distinguish them from theaverage customer.–Both PLAY and CEC have been executingextensive remodel programs to enhance locationaesthetics.–PLAY also plans to elevate food and beverageoffers through a new menu launching in August2024.% Trading Down to Cheaper Alternatives% Planning to SplurgeLow-to-mid HHI trading downfrom more expensive leisureitemsHigh HHI reveals greaterwillingnessto splurge on experiencesSources: IBIS, Restaurant Business, KTLA, SEC Filings,WallStreetResearch.Varying Consumer Behavior Favors OOHE... •Season pass sales, which provide a strong valueproposition for loyal visitors and serve as aproxy for underlying demand, trended up inrecent months.•Both FUN and SIX benefited from easingcomparablesand a strong kickstart to 2024season pass sales.–Following the companies’ merger, FUN isconsidering adding an ultimate value passthat will provide access toallparks in theportfolio.–BOWL achieved record sales of $6 million inJune 2024 with its Summer Season Pass,further demonstrating the theme’s power.•CEC also rolled out a subscription plan inAugust 2024, offering customers 20%–50%discounts for a flat monthly fee.•Season pass holders account for 50%–60% ofannual theme park attendance, emphasizing thecritical need to drive retreat visitation throughvalue offers that enhance customer loyalty.Customer Retention/RepeatabilityMemberships/season passes encourage repeat visits from a loyal customer base,helping increase foot traffic and in-park/on-premise spending.Mitigates Shoulder SeasonsPassholders/members may be more inclined to visit during off-peak times,helping stabilize attendance year-round.Increases Customer LTVAccount for a recurring, loyal customer base uniquely inclined to promote theirexperiences (e.g., via word-of-mouth, social media, etc.) and entice new visitors.Memberships/Season Passes Stabilize Revenue……and Suggest Consumers Prioritize ValueIncremental Marketing OpportunitiesEasily targeted with exclusive offers/ev