As we discussed in Part I of this series (“Managing the Key Issues Affecting Hospitality M&A Deals,” Oct. 31, 2018), merger and acquisition activity in the hospitality industry is at an all-time high. According to Hotel News Now, 18 major merger and acquisition transactions in the hospitality industry were announced in 2018, closing out a record-setting year of M&A activity and extending a years-long trend of aggressive consolidation in the industry. AccorHotels alone—one of the largest hotel companies in the world—announced four major acquisitions in 2018, including the acquisitions of 21c Museum Hotels, Mövenpick Hotels & Resorts, Atton Hoteles, and a 50 percent equity stake in sbe Entertainment Group, executing on its ambitious plan to significantly increase its portfolio of hotel brands outside of Europe.

As further evidence of the strong M&A activity in the industry, in the short period since the publication of our article in October 2018, a consortium led by Jin Jiang International Holdings—recognized as the largest hospitality company in China—announced the completion of its acquisition of Radisson Holdings, and VMH Moët Hennessy Louis Vuitton announced its intention to acquire Belmond Ltd. at an enterprise value of $3.2 billion.