- KPMG: U.S. hospitality M&A slowed, while deal value more than doubled.
- Hospitality and leisure deal volume fell 17.8 percent from H2 2025.
- PE deal value rose 2.7 percent to $8.6 billion.
MERGERS AND ACQUISITIONS in the U.S. travel, leisure and hospitality slowed in the first half of 2026, but deal value more than doubled as buyers focused on larger transactions, according to KPMG. Deal volume fell 7.6 percent year on year, while deal value rose 106.8 percent to $39.6 billion.
KPMG’s “M&A Trends in Travel, Leisure and Hospitality, H1 2026” report found that buyers were becoming selective and directing capital towards assets offering scale, customer ownership, operating leverage and integration opportunities. The focus was on strategic value rather than a broad recovery in deal activity.
“In this environment, buyers are looking past the initial acquisition and scrutinizing the actual mechanics of post-close execution,” said Daniel Fischer, KPMG principal and lead for U.S. travel, leisure and hospitality advisory. “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.”
For hospitality and leisure, deal volume fell 17.8 percent from the second half of 2025 and 6.1 percent year on year, the study found. Deal value rose 1.2 percent from the previous half and 106.6 percent year-over-year, driven by demand for quality assets.
Buyers were seeking pricing power, repeat engagement, brand strength, labour discipline, renovation potential, loyalty reach and scope for operating improvements, KPMG said. They were also buying scalable systems such as loyalty platforms, guest data, distribution networks, branded lodging infrastructure and operating models that could support integration.
Execution remained a key risk, as technology, loyalty, franchise governance, capital expenditure and restaurant operations could erode value after closing. Higher-income consumers continued to drive spending in the sector and were less responsive to price increases in recent years.
Strategic buyers led the market, with deal value rising 187 percent year on year to $31.1 billion, the report said. Private equity deal value increased 2.7 percent to $8.6 billion, as corporate buyers used synergies, balance-sheet capacity, operating integration and longer strategic time horizons to pursue larger transactions.
KPMG said the second half of 2026 is likely to remain selective, with larger deals possible where buyers can demonstrate customer ownership, financing certainty, synergies, operating improvements and integration readiness. Sponsors will need clear value-creation plans, while strategic buyers may remain better positioned where technology, customer reach and operating scale support the investment case.
A separate report by PricewaterhouseCoopers in December 2025 found that the hospitality industry had shifted from expansion to optimisation after several years of post-pandemic normalisation. Deal activity remained steady but selective, with strategic buyers accounting for most transactions.
