Strategic moves to refine and enhance portfolios

Despite a quiet year for mergers and acquisitions (M&A) activity in 2024, companies in the travel, leisure, and hospitality (TLH) industry continue to make strategic moves to expand and innovate their portfolios. Las Vegas has regained its status as one of the most desirable destinations for business and leisure travelers post-Covid-19. For lodging companies, expanding their footprint in this vibrant city has become a priority. Major brands such as Marriott, Hilton, Hyatt and others are forming strategic partnerships and loyalty program tie-ups with Las Vegas properties to capitalize on the city's growth and excitement. These alliances allow the companies to cross-promote, share resources and expertise, and gain a strong presence in a critical market poised for further expansion.

Here are some key trends and insights from the year:

• Deal volumes and values fell to their lowest levels since 2020, with 875 total deals worth $28.2 billion, a 20 percent decrease year-over-year
• The gaming subsector saw leaders such as DraftKings acquire innovative startups to enhance their products and technology
• In one of the biggest deals, Apollo Funds announced a $6.3 billion all-cash acquisition of International Game Technology's gaming and digital business, along with Everi Holdings
• An $8 billion merger between theme parks Six Flags and Cedar Fair closed, potentially spurring further consolidation
• Cruise lines expanded expedition offerings and made acquisitions to meet demand for unique, sustainable travel experiences
• TLH companies are cautiously optimistic that improving economic conditions in late 2024 will continue and fuel a rebound in M&A activity in 2025.

As we move forward, TLH leaders need to consider factors such as macroeconomic conditions, capital on the sidelines, and the value of partnerships to position themselves for success. Download our report, Strategic moves to refine and enhance portfolios: M&A trends in travel, leisure, and hospitality, to read more insights on M&A trends in the sector.