The report below presents you with a good overview on the second quarter M&A activity in the Hospitality & Leisure Industry Sector. M&A activity for North American based target companies in the Hospitality and Leisure sector for Q1 2018 included 41 closed deals, according to data published by industry data tracker FactSet.
One of the notable transactions of the quarter closed in March when Host Hotels & Resorts LP, a subsidiary of Host Hotels & Resorts, Inc., acquired Andaz Maui at Wailea Resort, Grand Hyatt San Francisco and Hyatt Regency Coconut Point Resort and Spa from Hyatt Hotels Corp for US$1 billion in cash. As part of the agreement, the three acquired hotels would continue to operate under the Hyatt brand and would be operated by Hyatt under a long-term management agreement. The transaction enables Hyatt Hotels Corp to maintain its brand presence in key markets and support the execution of its recently announced initiative to reduce real-estate ownership to unlock shareholder value.
The hospitality sector has been significantly affected by technology when it comes to bookings. This is especially evident in the booking of short-term rentals, but has been prevalent across the board. One of the key areas has been improving guest experiences including speeding up check-in and check-out times.
- US tourism spending on traveler accommodations, an indicator for hotel and motel revenues, increased 3.9% in the third quarter of 2017 compared to the same period in 2016.
- US personal income, which drives consumer spending on hotels and motels, rose 3.8% in January 2018 compared to the same month in 2017.
- US retail sales for food services and drinking places, an indicator of casual restaurant sales, increased 2.3% in the first two months of 2018 compared to the same period in 2017.
Posted by Robert Decker.