2024: A quiet year for travel and hospitality M&A

Strategic partnerships rise as high capital costs stall deal-making - hope for a rebound in 2025 grows with easing economic pressures

Apr 1, 2025

2024 was a notably subdued year for mergers and acquisitions (M&A) in the travel, leisure, and hospitality sector, as deal volumes dropped to their lowest levels since 2020, according to a new KPMG report. Economic uncertainty and high capital costs kept many potential mergers on hold. Yet, the industry found alternative ways to grow and adapt - especially through strategic partnerships and loyalty alliances - offering a lower-risk path to collaboration. Signs of economic recovery and easing interest rates toward the end of the year suggest that M&A activity could rebound in 2025, giving the sector a reason for cautious optimism.

Key takeaways

  • Deal volume drop: 2024 saw only 875 deals worth $28.2 billion in travel, leisure, and hospitality - a 20% decline from 2023 and the lowest since 2020.
  • Shift toward partnerships: Despite fewer M&A transactions, companies pursued strategic partnerships and loyalty tie-ins, especially in markets like Las Vegas, as a lower-risk alternative to full acquisitions.
  • Economic pressures: High capital costs were a major barrier to M&A activity throughout most of 2024.
  • Mixed trends in hospitality and leisure: While the number of deals in hospitality and leisure rose 5% (to 820 deals), total deal value decreased by 5.7%, to $27.6 billion.
  • Notable deal: Standard General LP’s $4.3 billion acquisition of Bally’s Corporation stood out, with Bally’s planning a major casino resort in Chicago.
  • Future outlook: Improving economic indicators - like falling inflation and lower interest rates - may fuel a rebound in 2025. A business-friendly political climate and a stabilizing labor market could further support deal-making.
  • Strategic focus: M&A goals in the sector include digital transformation, geographic diversification, sustainable practices, and competitive positioning post-pandemic.

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