Vibrant M&A Activity Will Come As A Boon For Hotel Industry In 2025

Moreover, technology M&A deals are not merely about expansion but are now strategic moves to gain access to emerging technologies, specialized talent and new customer bases

As we look to the future, Mergers and Acquisitions (M&A) activity in 2025 is likely be shaped by macroeconomic conditions and technological advancements. The general expectation for the M&A market is that it will continue to recover.

The rebound in mergers and acquisitions that did not fully materialize last year now appears to be on track. Although mergers and acquisitions increased in 2024 after hitting a low point in 2023, deal volume was lower than expected after private-equity firms delayed selling assets and a challenging regulatory environment hindered the largest deals valued over $40 billion.

The transaction value in the M&A market is projected to reach $2.41 trillion in 2025, while the average transaction value will be to the tune of $157.80m.

From a global comparison perspective, it is shown that the highest transaction value is reached in the United States ($1,168bn).

The top opportunity for hoteliers this year will be driving revenue and earning profits by doubling down on innovation in guest experience delivery.

“We have a positive view of the M&A market for 2025,” says Tom Miles, co-global head of M&A at Morgan Stanley.

“Two key drivers will be increased activity from financial sponsors selling companies and a more favourable antitrust environment. On sponsors, the average age of sponsor portfolios is historically high and monetisation has to happen to allow for new fundraising. As regards antitrust, the expectation is that we return to a more traditional and predictable review process and that should spur more activity as companies have more predictable outcomes and timelines,” he maintains.

Accor, a world-leading hospitality group with over 5,600 properties across 110 countries, has announced that the group has taken over management of The Grand Tarabya, a historic property nestled in Istanbul’s upscale Tarabya neighbourhood along the Bosphorus Strait.

Effective from December 31, 2024, The Grand Tarabya marks Accor’s 38th property in Istanbul, reinforcing its continued expansion in key cities across Europe and the Middle East, boosting the destination’s growing reputation as a global hub for luxury hospitality.

Hilton has announced signing of four new hotels in Lyon, France, following franchise agreements with Arteloge.

These signings mark the launch of the Spark by Hilton premium economy brand in France, as well as Lyon’s second DoubleTree by Hilton hotel, an upscale brand popular with both business and leisure travellers.

Spark by Hilton Lyon Ouest and Spark by Hilton Lyon Park Saone are set to open in late 2025, with Spark by Hilton Lyon Eurexpo due to join Hilton’s portfolio in the summer of 2026. DoubleTree by Hilton Lyon Plage is scheduled to welcome guests in 2028. In total, the four hotels will boast of 655 rooms overall.

The US-based alternative investment firm, Blackstone Inc. (Blackstone), is acquiring Tokyo Garden Terrace Kioicho, a mixed-use complex in Chiyoda ward, Tokyo, from Japan-based Seibu Holdings Inc. for $2.6 billion (approximately JPY400 billion). The transaction is expected to be completed on February 28.

Singapore-based sovereign wealth fund GIC Private Limited (GIC) is collaborating with US-based Summit Hotel Properties in a joint venture to purchase the 250-key Hampton Inn Boston-Logan Airport and the 149-key Hilton Garden Inn Tysons Corner in the US for a combined purchase price of $96 million.

OYO, the global travel technology company, announced that it has finalized acquisition of G6 Hospitality, the franchisor of the Motel 6 and Studio 6 brands, for $525 million from Blackstone Real Estate.OYO is not only completing this strategic acquisition but also plans to accelerate the growth of G6 Hospitality, with the goal of adding more than 150 additional hotels under the Motel 6 and Studio 6 brands. This initiative aims to strengthen the brands' presence in key markets while leveraging technology integration and infrastructure improvements.

As we approach 2025, the landscape of mergers and Meanwhile, M&A activity continues to evolve in the tech sector, influenced by rapid innovation, market shifts and an increased focus on sustainable growth. Moreover, technology M&A deals are not merely about expansion but are now strategic moves to gain access to emerging technologies, specialized talent and new customer bases.

This year promises transformative shifts in M&A strategies, fuelled by tech advancements like AI, cybersecurity and the push towards sustainable practices, while improving prospects without the pressure of delivering quarterly returns to public shareholders.

Meanwhile, if the M&A market has to experience a robust rebound this year, there is a need for the financial-sponsor activity to pick up beyond take-privates. Pressure keeps building for private-equity firms to sell assets and return money to investors; they will need to monetize their assets and return capital to stakeholders as a first step before raising new funds.