After a slow start to the year, the Mantra Group Ltd (ASX: MTR) share price has taken off recently and been one of the best performers on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) during the last three months.
During this period the leading accommodation provider's shares have risen approximately 18%.
Is it too late to invest?
I don't believe it is. Even after this strong gain Mantra's shares are changing hands at around 17x forecast full-year earnings.
This means that its shares trade at a reasonable discount to rivals Event Hospitality and Entertainment Ltd (ASX: EVT) and Crown Resorts Ltd (ASX: CWN).
Their shares are changing hands at 19x and 24x earnings, respectively.
I think this makes Mantra's shares great value and a good investment option for buy and hold investors.
Especially with the tailwinds of the tourism boom likely to lead to above-average earnings growth over the next few years.
The most recent data from the Australian Bureau of Statistics revealed that inbound tourism continues to grow at a strong pace.
In April Australia welcomed 727,600 short-term arrivals. This was a 7.7% increase on the prior corresponding period.
With the tourism boom unlikely to slow any time soon, I believe Mantra is positioned perfectly to profit.
I expect the increase in tourism will see demand increase greatly for its extensive range of accommodation in key tourist hotspots across Australia.
This should allow the company to enjoy higher occupancy levels and room rates, ultimately resulting in bumper profit and dividend growth. At present Mantra's shares provide a trailing fully franked 3.4% dividend.
Overall I believe this makes Mantra a great mix of value, growth, and income.
