The first half of 2025 has been a paradoxical period for global mergers and acquisitions (M&A). While capital markets have begun to loosen, with lower interest rates and inflationary pressures finally showing signs of moderation, the travel, leisure, and hospitality (TLH) sector has not seen a simple rebound. Instead, deal activity has narrowed in volume but grown in focus. Hospitality M&A 2025

According to KPMG’s H1 2025 analysis, the sector recorded 368 deals worth $10.8 billion. That represents a 12.8% decline in volume and a 43.3% drop in value compared to the second half of 2024. On paper, this looks like a downturn. But industry observers are quick to note that what’s emerging is not weakness but selectivity. Dealmaking is increasingly about strategic positioning: acquiring assets that can unlock luxury travelers, strengthen loyalty ecosystems, or accelerate the transition to a tech-enabled future.

This dynamic stands in contrast to broader global M&A patterns. While healthcare and energy sectors have attracted higher volumes of mid-market deals, travel and hospitality players are concentrating firepower into fewer but larger bets. The result is a sector that appears quieter in headline numbers, yet more transformative in its underlying transactions.

Travel Leads While Hospitality Pauses

Within the TLH umbrella, travel has been the clear outperformer. KPMG data shows a 35.5% increase in deal volume compared with late 2024, and a remarkable 75% jump year-over-year. Investor appetite is strongest in luxury and experiential travel, reflecting the post-pandemic shift in consumer behavior: travelers are prioritizing memorable, high-quality experiences over frequency of trips. Private equity firms and established operators alike are chasing this demand.

By contrast, hospitality and leisure deals cooled. Volume fell 16.6% half-over-half, while deal value dropped almost 47.4%. Yet, large transactions in the hotel and gaming subsectors kept the market moving. Hyatt’s $2.6 billion acquisition of Playa Hotels & Resorts, Ryman Hospitality’s $865 million purchase of the JW Marriott Phoenix Desert Ridge, and Marriott’s $355 million stake in CitizenM are emblematic of how global brands continue to consolidate premium portfolios.

Gaming, too, remained resilient. Deals like Scopely’s $3.5 billion purchase of Pokémon Go and Light & Wonder’s $800 million acquisition of Grover Gaming assets show that interactive entertainment continues to command investor conviction.

Why This Cycle Looks Different

Three forces are shaping the current M&A cycle in TLH:

1. Digital acceleration – Hospitality and travel brands are under pressure to modernize. AI-enabled guest personalization, dynamic pricing, and predictive operations are increasingly central to deal rationale.
2. Luxury positioning – Affluent consumer segments are driving disproportionate revenue growth. Acquisitions that unlock access to these customers command a premium.
3. Consolidation of intermediaries – Online travel agencies (OTAs) and gaming platforms are pursuing scale, mirroring consolidation seen in adjacent industries like fintech.

But challenges remain. Inbound U.S. travel has softened, as noted by KPMG partner Braden Mark, raising concerns for operators heavily dependent on international traffic. Moreover, despite easing monetary conditions, financing remains cautious, pushing some players to explore alliances and loyalty partnerships rather than outright acquisitions.

How TLH Compares with Other Industries

What sets TLH apart is the asymmetry between volume and value. In healthcare, for instance, deal counts remain high, but values are fragmented, reflecting a focus on bolt-on acquisitions. In technology, mega-deals are still stalled by regulatory scrutiny. Energy, meanwhile, continues to attract capital due to the energy transition, but deals often skew toward infrastructure and renewables.

TLH sits somewhere in between. It lacks the sheer frequency of healthcare or industrial deals but retains the strategic weight of select tech transactions. In other words, when hospitality brands buy, they buy big—signaling long-term conviction rather than tactical expansion.

The Outlook: From Quiet Consolidation to Bold Resurgence

2024 was the quietest year for hospitality M&A since the pandemic, with 875 deals totaling just $28.2 billion—the lowest level in four years, according to Hospitality Today. Many operators turned to partnerships, joint ventures, and loyalty tie-ups as safer growth levers. But 2025 is showing signs of a reset.

If interest rates continue to decline and inbound travel recovers, the second half of 2025 could mark the beginning of a more pronounced rebound. For now, the TLH industry is charting a middle course: less noisy, more intentional.

Conclusion: Selectivity as the New Normal

The M&A landscape in travel, leisure, and hospitality is no longer about scale at all costs. Compared to sectors like healthcare, which thrive on volume, or energy, which thrives on long-term infrastructure plays, TLH is emerging as a curated consolidation story.

Hospitality giants like Marriott, Hyatt, and Ryman are pursuing fewer but higher-value deals that bolster luxury offerings. Gaming companies are hedging against market volatility by acquiring proven revenue streams. Travel operators are doubling down on the premium segment.

This is a structural shift: the industry is moving toward quality-driven consolidation, with technology and luxury at its core. If other sectors are racing to capture volume, TLH is refining its portfolio for resilience. And in a market where consumer preferences are shifting rapidly, that may be the smarter bet.