Hospitality & Leisure

Merger and acquisition activity is down in 2009 and will likely remain that way until the second half of the year when buyers gain more confidence in revenue forecasts and lenders become more active.

The second half of the year will likely involve a surge in small and medium sized mergers and acquisitions across some sectors of the hospitality and leisure industry. Investors with cash will keep a close watch on potential bargains as financial distress increases and selling assets becomes critical to survival.

The hotel sector is likely to see an increase in M&A deals as the stronger budget and luxury hotel brands use this opportunity to acquire assets from their mid-market counterparts. Further consolidation is expected in the health, fitness and travel sectors.

Bars and restaurants could become targets for M&A deals. From the buyers’ point of view, the stronger restaurant brands remain a good target for investment.

Sources