The report below gives a good overview of the third 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 Q2 2019 included 66 closed deals, according to data published by industry data tracker FactSet.
One of the notable middle market transactions was announced in June when Cedar Fair LP acquired the Schlitterbahn Waterpark & Resort New Braunfels and the Schlitterbahn Waterpark Galveston from Waterpark Management Inc, doing business as Schlitterbahn Waterpark & Resort, for US$261 million in cash, subject to certain working capital adjustments. The transaction increases Cedar Fair’s portfolio expands its footprint in the Texas region and accelerates its growth and profitability. The acquired waterparks generated annual revenues of approximately US$68 million in 2018.
- Total US consumer spending, an indicator of casino and hotel spending, rose 1.5%, primarily from services expenditures, in May 2019 compared to the same month in 2018.
- US personal income, which drives consumer spending on lodging and gambling, rose 4.1% in May 2019 compared to the same month in 2018.
- Total US revenue for gambling industries rose 3.9% in the first quarter of 2019 compared to the previous year.
Posted by David Hulett.