PwC Reports Mergers and Acquisitions Down in Hospitality

Despite some big takeover announcements in the hospitality industry this year, accounting firm PwC reports mergers and acquisitions have dipped significantly when compared to last year. 

In its Hospitality and Leisure midyear report, PwC used S&P Global Market Intelligence data to determine that the total value of deals in the industry for 2025 (up until May 15) were valued at less than $4 billion USD, which is less than half of the value during the first two quarters of 2024. Among the factors cited for the slowdown, the report highlights policy uncertainty and complications in cross-border activity due to tariffs and threatened tariffs. 

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Most of interest to people in the travel and leisure industry is the report's mention of  “shifting sentiment around global travel” which it says may be prompting operators to strengthen their U.S. portfolios. 

Where deals are happening, PwC notes, is in the luxury category. “Operators are doubling down on experience-driven growth, using M&A to enter luxury, lifestyle and bespoke travel segments catering to high-income consumers, particularly as the upper end of the income curve continues to drive overall consumer consumption growth in the United States.”

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