Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Hospitality and Leisure Industry Sector

By David Sinyard | Feb 14, 2020

The report below gives a good overview of the first quarter M&A activity in the Hospitality and Leisure Industry Sector. M&A activity for North American based target companies in the Hospitality and Leisure sector for Q4 2019 included 64 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions in the sector was announced in December when Maybourne Hotels Ltd, a subsidiary of Constellation Hotels Holding Ltd, acquired Montage Hotels & Resorts LLC from Ohana Real Estate Investors LLC, ultimately owned by Orei Advisors LP for approximately US$415 million. Maybourne Hotels owns and operates hotels. Montage Hotels & Resorts owns and operates hotels, resorts and residences. It operates portfolio of hotels, resorts and residences such as Montage Laguna Beach, Montage Beverly Hills, Montage Deer Valley, Montage Kapalua Bay, Montage Palmetto Bluff and Montage Los Cabos. The company was founded in 2002 and is headquartered in Laguna Beach, CA.

Industry Indicators

  • Total US consumer spending, an indicator of casino and hotel spending, rose 1.3%, primarily from services expenditures, in October 2019 compared to the same month in 2018.
  • US personal income, which drives consumer spending on lodging and gambling, rose 4.4% in October 2019 compared to the same month in 2018.
  • Total US revenue for gambling industries rose 3.5% in the third quarter of 2019 compared to the previous year.

Posted by David Sinyard.

Read the Entire Hospitality and Leisure 1st Quarter Newsletter Here

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