M&A trends in travel, leisure and hospitality

Despite a challenging macroeconomic backdrop, the travel, leisure, and hospitality (TLH) sector is showing signs of strategic recalibration in mergers and acquisitions (M&A). Dealmakers are navigating a complex environment shaped by evolving consumer preferences, geopolitical risk, and interest rate uncertainty.  In fact, as the second half of 2025 (H2’25) began, Apollo Global Management’s (Apollo) acquisition of International Game Technology (IGT) and Everi Holdings (Everi) for $6.3 billion sparked hopes for increased dealmaking.¹

TLH saw a 17.3 percent increase in year-over-year (YoY) deal value in the first half of 2025 (H1’25) compared to the first half of 2024 (H1’24), even as deal volume dropped 18.8 percent over the same period. However, when compared to the second half of 2024 (H2’24), deal value dropped 43.3 percent and volume fell 12.8 percent, underscoring a more selective and strategic approach to dealmaking. This divergence signals a market that is prioritizing quality over quantity, with investors focusing on high-conviction bets in areas such as luxury travel, AI-driven hospitality, and mobile gaming.

Strategic buyers dominated the landscape, accounting for nearly 75 percent of deal volume, while private equity (PE) activity softened, particularly in the mid-market. The sector’s largest transactions—Hyatt’s $2.6 billion acquisition of Playa Hotels & Resorts, Apollo and RedBird Capital Partners’ $1.0 billion acquisition of Madrid Open and Miami Open tennis tournaments, and Bain Capital’s $1.0 billion investment in Sizzling Platter—highlight a continued appetite for scale, brand consolidation, and operational synergies.^{2 3 4}

Thematically, the sector is being reshaped by three forces: the digital transformation of guest experiences, the rise of experiential and luxury travel, and the consolidation of gaming and online travel agency (OTA) markets. These trends are not only influencing deal strategy but also redefining the competitive landscape.^{5 6 7 8}

H2’25 started strong with the blockbuster $6.3 billion Apollo-IGT-Everi deal and is shaping up to be a period of strategic optimism tempered by macroeconomic caution.

Dealmakers are expected to focus on:

• AI and automation: Hospitality players are doubling down on AI and robotics to address labor shortages and enhance guest experiences. Marriott’s partnership with RobotLAB and LG is a case in point.¹⁴
• Luxury and experiential travel: The luxury segment is forecasted to grow at a compound annual growth rate of 8.4 percent through 2033, driven by demand for bespoke, sustainable experiences.¹⁵
• Gaming consolidation: Mobile and regulated gaming segments are attracting both strategic and PE interest, with expectations of continued M&A activity through 2025.