Hotel deal activity slows, with capital focusing on luxury, wellness

Industry

โดย Hotel Dive·Read original

Summary · why it matters

Hospitality and leisure M&A deal volume fell 2.5% in the first half of 2026 compared to the prior six months, but investors are concentrating on the upper end of the market, according to PwC's U.S. Deals 2026 midyear outlook. Upscale, upper upscale and luxury assets accounted for 73% of deals over the last six months, the highest concentration in two years, as buyers target segments with pricing power, repeat engagement and AI readiness. Luxury RevPAR is expected to rise 5.4% year over year in 2026, while upper upscale and upscale RevPAR is expected to increase by 2.1% and 2.7%, respectively. Two large casino transactions in late May and early June, including Fertitta Entertainment acquiring Caesars Entertainment and People Inc.'s plans to buy MGM Resorts, have boosted deal value, signaling an appetite for transformative M&A. The report also notes that buyers are paying premiums for assets with built-in wellness offerings, and that AI is reshaping deal structures, with operators lacking clean customer data seeing bids suppressed or withdrawn.