Introduction: Mergers and Acquisitions in Global Hospitality Industry
While most industries are still trying to recover from the financial crisis, the global hospitality industry is much ahead of the game and is thriving in a cycle of accelerating growth due to large amounts of cross-border mergers and acquisitions (M&A). In the U.S., cross-border investment rose about 137% last year and is estimated to increase this year as many foreign investors have planned to invest more capitals in U.S hotels.
Asian investors, mainly from China, Hong Kong, Japan, and Singapore, are the most active buyers in cross-border M&A. They represented 43.2% of total cross-border hotel transactions. With more favorable terms of debt and equity available, and a greater flow of money from Asia into mature markets, such as North America, Europe and Australia are estimated to continue growing.
Demand is evolving in the global hospitality industry as millennials are more cost sensitive and experience focused. Global investors are also willing to take more risks nowadays and desire high-yield investments. Therefore, future cross-border M&A activities will focus more on the secondary markets, such as Middle East and Africa.
As cross-border capital investments continue to increase, the outlook for global hospitality industry is very positive. This sector will be the key driver of economic growth at a local, regional, and global level.
For more information on global hospitality industry, check out gloablEDGE Hospitality Industry section!
Featured Resources
Hospitality Net
In addition to the latest news articles regarding the global hospitality industry, Hospitality Net provides detailed market reports, industry links, and industry events. In addition, products beneficial to the hospitality business are linked to a specific page with descriptions of their vendors and purpose. This resource also offers a listing of new books on hospitality-related topics with descriptions and links to purchase the books online.
PricewaterhouseCoopers: Hospitality and Leisure
PricewaterhouseCoopers provides background information on various industry sectors globally. This resource includes an up-to-date hospitality and leisure industry environment description, challenges facing the industry and potential solutions, free downloadable publications including annual reviews, and events.
Categories: Hospitality and Travel , Industries
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