AI, luxurious journey set to catalyze world hospitality M&A: report

Listen to the article
3 min

This audio is auto-generated. Please tell us in case you have suggestions.

Dive Brief:

• In the primary half of 2025, the worldwide journey, leisure and hospitality sector saw $10.8 billion in mergers and acquisitions activity, a 17.3% year-over-year enhance in deal worth, in response to a report from skilled providers agency KPMG. The variety of offers (368), nevertheless, declined 18.8% yr over yr, KPMG discovered. 
• The divergence alerts that journey, leisure and hospitality deal-makers are prioritizing high quality over amount, notably “focusing on high-conviction bets” in areas like luxurious journey and AI-driven hospitality, in response to KPMG. In H1, the sector’s largest transaction was Hyatt’s $2.6 billion acquisition of Playa Hotels & Resorts. 
• As deal-makers proceed to navigate “a complex environment shaped by evolving consumer preferences, geopolitical risk, and interest rate uncertainty,” they’ll seemingly double down on AI and robotics to deal with labor shortages and improve the client expertise whereas additionally remaining bullish on the quickly increasing luxurious phase, KPMG forecast. 

Dive Insight:

For the hospitality and leisure sector, particularly, deal worth rose 15.9% yr over yr in H1, whereas deal quantity fell 24%, pointing to fewer, however bigger, offers, in response to KPMG. 

Beyond Hyatt’s Playa acquisition, notable hospitality offers within the half included Ryman Hospitality Properties’ $865 million acquisition of JW Marriott Phoenix Desert Ridge Resort & Spa. Additionally, Marriott International acquired the CitizenM resort model for $355 million. 

Three key components are influencing deal methods within the journey, leisure and hospitality sector: the digital transformation of visitor experiences, the rise of experiential and luxurious journey and the consolidation of gaming and on-line journey company markets, in response to the report. 

Following Marriott’s buy of the tech-forward CitizenM model, CFO Leeny Oberg informed Hotel Dive the deal aligns with Marriott’s technique to supply friends a full vary of experiences, worth factors and areas. 

Looking forward, hospitality deal-makers will give attention to know-how alternatives to deal with labor shortages and improve the client expertise, in response to KPMG. Additionally, the luxurious phase can be a spotlight space, as it’s anticipated to develop 8.4% compound yearly by way of 2033, the report detailed. 

According to JLL’s H1 2025 U.S. Hotel Investment Trends report, the luxurious phase can be a standout alternative for U.S. resort traders within the again half of the yr as higher-tier properties outperform their lower-tier counterparts. 

Domestically, personal equity-sponsored hospitality offers declined 85% yr over yr in H1 amid excessive borrowing prices, President Donald Trump’s tariff coverage shifts and worsening world journey sentiment, PwC reported in June.