Dive Brief:
- In the first half of 2026, the U.S. travel, leisure and hospitality sector saw $39.6 billion in mergers and acquisition activity, a 106.8% increase in deal value year over year, according to a new report from KPMG. However, the number of deals (402) fell 7.6% year over year in H1, KPMG found.
- The disconnect between deal value and volume suggests buyers are pursuing “bigger, higher-conviction” deals as they prioritize assets that offer “customer ownership, loyalty ecosystems, distribution control, pricing power and scalable operating models,” KPMG shared with Hotel Dive.
- Quality assets will “continue to command premiums” in H2, particularly in the hospitality and leisure sector, KPMG projects. In order for larger transactions to occur, buyers will need clear proof of “credible synergies, financing certainty, operating improvement and integration readiness” as some risks prevail, per the report.
Dive Insight:
In H1, hospitality and leisure buyers, in particular, sought out deals that offered pricing power, repeat engagement, brand strength, labor discipline, renovation upside, loyalty reach and operating improvement potential, according to KPMG.
Across hospitality and leisure — which spans lodging, resorts, restaurants, gaming, cruise, attractions, fitness and experiential assets — deal value increased 106.6% year over year in H1, while deal volume declined 6.1 % year over year, “reflecting demand for higher-quality assets,” per the report.
Fertitta Entertainment’s $17.6 billion acquisition of Caesars Entertainment was the highest-value deal during the half. The hospitality and leisure deal brought together physical assets, loyalty reach, hospitality operations, gaming economics and customer data in one platform, per the report.
Other top hospitality and leisure deals in H1 included KSL Capital Partners’ $3 billion acquisition of Invited Clubs and Apollo Global Management’s acquisition of Emerald Holding and Questex for approximately $1.5 billion, KPMG reported.
Over the next three to six months, KPMG expects hospitality and leisure dealmakers to focus on “premium lodging, scaled gaming, restaurant platforms, branded services, destination assets and membership-led experiential platforms with specific operating theses.”
Hospitality and leisure deals will be driven by quality, measured by “rate integrity, repeat behavior, capex discipline, brand strength, margin control and the ability to turn customer data into operating outcomes,” per the report.
One execution risk that hospitality and leisure dealmakers will face is confusing temporary demand strength with structural demand, according to KPMG. Underfunding renovation, technology and workforce initiatives after closing could present another danger.
“In this environment, buyers are looking past the initial acquisition and scrutinizing the actual mechanics of postclose execution,” Daniel Fischer, principal and U.S. travel, leisure and hospitality advisory lead at KPMG, said in a statement. “The true value of these large deals won’t be measured on signing day, but by a company’s ability to seamlessly transform the business.”
A June report from PwC also found that U.S. hospitality and leisure M&A deal volume was down in the first half of 2026. The midyear outlook revealed that investors are eyeing a “narrower set of assets,” with a focus on premium, wellness-anchored and data-rich assets.
